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5 Reasons Why You Should Link Your Bank Account To Your Paypal

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Paypal has become the go-to service in terms of sending and receiving online payments. Lots of websites list Paypal as a method of payment and many small business websites use Paypal as their only method of payment. Signing up for a Paypal account is free and easy, but you should know that linking your bank account to your Paypal account has many additional benefits. The linking process is easy, fast, and 100% free! If you're looking for a tutorial on how to link your bank account click here.

Reason #1 – Safe & Secure

Connecting your existing bank account to your Paypal is free of charge and is a safe and secure process. Your bank account information stays confidential with the Paypal service and is never revealed to anyone including payment recipients. Transactions from your bank account must be initiated by you and Paypal will send you an email notification anytime money is transferred from your account. Paypal also monitors each account closely and reviews all payments to check for unusual account activity.  Payments from your bank account are 100% protected against unauthorized withdrawals.

Reason #2 – Draw Funds From Bank

By linking your Paypal account directly to your bank account, you gain the ability to use it as a source to fund future Paypal purchases. This means you will never have to worry about manually transferring money to your Paypal account as it will automatically transfer the required amount needed to make the purchase. If you currently carry a positive balance in your Paypal account, it will only take the difference in order pay the full amount required.

Reason #3 – No Fees

If you choose to send money through Paypal via a linked debit or credit card, you will almost always be hit with a fee. When you have your bank account linked with your Paypal, sending money within the U.S. is always free.

Reason #4 – Move Money Between Accounts

If you regularly use Paypal to purchase items or receive payments then linking your bank account should be a no brainer. By linking your account, you have the ability to easily transfer money between the two accounts for no cost. There is no better way to accept a payment online and transfer it directly to your bank account. Keep in mind your bank account must be located in the U.S. in order to move money without getting hit with any fees.

Reason #5 – Become Paypal ‘Verified'

There are many great benefits to becoming verified by Paypal and linking your bank account will allow you to complete this verification. The most notable gain you receive, is a dramatic increase in your spending and withdrawal limits. Additionally, every time you verify your account, you help increase the security of the Paypal network as more people are confirmed to be who they say they are.

Sources: Paypal, 2, 3

  • Sorry, I don’t trust paypal with my bank information. Their track record is not exactly consumer friendly and government regulation is not tight enough to suit me.

  • Was this article written by paypal? No mention whatsoever about paypal doing something stupid or nefarious with your bank account and no mention of the increased risk of your bank account information getting stolen via a hack.

    • Not written by Paypal. Just outlying the many benefits you can have by linking the two. If you don’t feel comfortable doing so yourself, simply don’t link the two. Just remember many local utility companies and some large gym franchises (such as Planet Fitness) require bank account information to be stored within their customer accounts to avoid credit card processing feeds and these institutions often have far weaker measures in place than Paypal does in terms of cybersecurity. It is a digital age we live in and as information must be shared with trusted sources to reap the benefits sometimes. For those not comfortable, simply opt out of doing so and deal with the fewer benefits when using a Paypal account.

      • Hmmmm was thinking okay sure….until you mentioned Planet Fitness…. nope and nope needed to link it for ease…but I can do the extra steps myself. I used Planet Fitness website once and after that…. I got 5 notices that my information from Yahoo was shared on the dark web.

  • It is worth mentioning one of the changes to the newest update to the user agreement:

    “PayPal may use any of the payment methods linked to a seller’s PayPal account to prevent the seller’s account from becoming negative when there are not sufficient funds in the account for seller refunds, reversals and chargebacks.”

  • True Story…a few years back, I made a simple purchase on eBay and used Paypal for payment. The next morning (Friday) I was at work and logged into my bank account to verify my paycheck auto-deposit. I was shocked to see a ‘0’ balance and broke every speed limit getting to my local bank bank. They logged into my account and discovered 4 withdrawals occurred after midnite from someone in the UK. Fortunately for me, the bank always holds online withdrawals for a few hours to verify records. Their security team got involved and put my account on hold. It took 10 days to clear up the matter and restore my bank balance. Paypal released a public statement about that time that they had suffered a security breach and was hastily repairing the holes. LESSON LEARNED!

  • Let’s get real and talk about a transaction that occurred with me recently. Through Ebay I sold an item. Ebay provided me with the buyer’s address. I mailed out the package. After the tracking number said the package was delivered, the buyer contacts me and tells me I’ve sent his package to the wrong town. It turns out this used to be his address a couple of years ago. He changed his address years ago, yet Ebay displayed the “wrong address”. How would I have known this was the buyer’s previous address – and knowing that would have sent it there? It was a computer malfunction, Ebay won’t admit to it and Paypal is trying to stick me with the bill. I won’t have it – there’s no reason I should pay for Ebay’s error. Paypal colludes with Ebay, now claiming I owe them the $69.81 (by corresponding with the buyer, he sounds like a nice guy, and I’m glad he’s been reimbursed). As it is today, Paypal cannot reach their hand into my account and remove that money; but if new legislation were to prevail: that could happen. Paypal engages in dishonest practices, and as I’ve said, collusion. Make no mistake about it. Beware, and I’d advise against providing Paypal with any of your information. In closing, if you like handling cyanide, you’re going to love the way Paypal handles you.

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