PayPal now has an official policy in place, using Yodlee's API to verify bank accounts and available funds. This wouldn't be so significant if it weren't for a few VERY alarming details, not the least of which is the fact that Yodlee is involved in lawsuits over the mishandling of user data (mining and selling user data without consent) and that PayPal REQUIRES that you hand over your banking login details to this third party in order to "verify" your bank account.
One of the biggest problems here is that it doesn't matter if you have had a verified bank account for years attached to your PayPal account, or even if you don't use an online bank (meaning you have no login credentials.) They are requiring (seemingly at random) all kinds of customers, including myself, to RE-verify our accounts in order to send money to individuals for products and services or just as a gift to friends and family.
The end game seems to be that PayPal no longer wants its customers to use PayPal to send direct payments, but wants to move that type of transaction to Venmo, thus separating the brands and their newly intended purposes.
I can for example, spend all the money I want at stores and on eBay et al using my PayPal account and NEVER receive a message about having to verify my bank account (that's because my bank account was verified years ago) but now, after several random attempts to get me to do so, the message pops up EVERY TIME I try to send a direct payment.
So I searched the forums and I searched the web and I was almost in disbelief at what customers were saying. So... I contacted PayPal myself, and I got the same response that others did; "If you don't like it, don't use PayPal."
Attached are screenshots of the message that pops up as well as the last messages from the conversation I had with PayPal support.
So basically, you have no way of knowing when or if this is going to happen to you (I suspect everyone will eventually get this message) and if you don't want to hand over your bank login information to a third party that is in legal trouble for mishandling customer data (they have no right to my bank login details to begin with,) then you simply won't be allowed to use PayPal to send direct payments (including both Goods and Services and Friends and Family.)
I suppose that means the BST will only be open to members willing to take the risk of giving Yodlee and PayPal power of attorney.
Don't take my word for it though. Feel free to research this.
Thanks and I hope this info is helpful to someone.
Oh and by the way, though the screenshot says you can turn off this feature, that is simply NOT true. No one has been able to find it and everyone who asks PayPal how to do it gets the same response ("you cannot opt out")
One of the biggest problems here is that it doesn't matter if you have had a verified bank account for years attached to your PayPal account, or even if you don't use an online bank (meaning you have no login credentials.) They are requiring (seemingly at random) all kinds of customers, including myself, to RE-verify our accounts in order to send money to individuals for products and services or just as a gift to friends and family.
The end game seems to be that PayPal no longer wants its customers to use PayPal to send direct payments, but wants to move that type of transaction to Venmo, thus separating the brands and their newly intended purposes.
I can for example, spend all the money I want at stores and on eBay et al using my PayPal account and NEVER receive a message about having to verify my bank account (that's because my bank account was verified years ago) but now, after several random attempts to get me to do so, the message pops up EVERY TIME I try to send a direct payment.
So I searched the forums and I searched the web and I was almost in disbelief at what customers were saying. So... I contacted PayPal myself, and I got the same response that others did; "If you don't like it, don't use PayPal."
Attached are screenshots of the message that pops up as well as the last messages from the conversation I had with PayPal support.
So basically, you have no way of knowing when or if this is going to happen to you (I suspect everyone will eventually get this message) and if you don't want to hand over your bank login information to a third party that is in legal trouble for mishandling customer data (they have no right to my bank login details to begin with,) then you simply won't be allowed to use PayPal to send direct payments (including both Goods and Services and Friends and Family.)
I suppose that means the BST will only be open to members willing to take the risk of giving Yodlee and PayPal power of attorney.
Don't take my word for it though. Feel free to research this.
Thanks and I hope this info is helpful to someone.
Oh and by the way, though the screenshot says you can turn off this feature, that is simply NOT true. No one has been able to find it and everyone who asks PayPal how to do it gets the same response ("you cannot opt out")
Last edited by a moderator: