Does paypal have access to my bank account info if I link my account?

[marmar1234]

This is a question mostly out of curiosity so I apologize if it's dumb to ask but I'm just very curious of how it works. Let me explain:

Basically I traditionally had this idea that if I share my bank account number with another party, they can only make payments to me. However it seems that in order to verify your bank account, paypal asks you to have the same exact details in your paypal account as in your bank account or it may not work. How comes? Does paypal and my bank interchange my info to verify? Does my bank share my info (name, surname, adress etc) to paypal automatically? Or if my bank detects my paypal info isn't correct it will deny verification? I'd love to know.

[sharpiemarker · Accepted solution]

@marmar1234 

PayPal is a payment processor/money transmitter who can process transactions in (deposits) or out (for purchases or add money to your PayPal account) from your bank account as you authorize PayPal to through the PayPal account interface or PayPal checkout interface.

To do this, you add AND confirm your bank account, otherwise the bank account can only accept withdrawals from PayPal like you say.

You complete the bank confirming process by referring to your bank account activity and entering the amounts of the 2 small deposits on the PayPal Wallet page for the bank account. After successfully confirming the bank, PayPal withdraws the deposits. Thus the two-way movement or transferring of money is established.

There is also a faster way by providing your online banking login credentials. This info will be matched with your bank to confirm your account ownership. Once this information is entered correctly, your bank account will be confirmed instantly.

If your PayPal balance becomes negative for instance, you may authorize paypal to go into your bank to debit the amount to balance out your PayPal account.

The specifics of what ”info” (name, etc) is undisclosed.

[marmar1234]

I see, I get it now!! Thanks 🙂