Direct debits to savings account... does a savings account work with paypal?

[newjerseymax]

Originally Posted by First Edition

that information is not correct

If Tran Number is incorrect (checking/savings) then bank system will reject it and they are now required to file a "Notification of change" to paypal which in turn will get you paypal account suspended.

This is the new law. Google it... Its all there...

[First Edition]

Tran number? The routing number for the bank is still the same. The "system" won't reject anything. I do this all the time with no issues. I don't have to google anything, I do it, and it works. Again, this is not correct information and I wish you would stop posting about it.

[kabatzas]

Tran Number?? Short for "transaction number"?
There is no difference in the way money goes in a current/checking account or in savings account, as long as that savings account can accept direct debits/deposits.

if the savings account cannot accept deposits or is not activated to do so, then most banks will still credit it manually but some will be picky if/when the notice a name discrepancy.

The only important info is the branch code and the account number....there is nothing else!

[newjerseymax]

Originally Posted by First Edition

Tran number? The routing number for the bank is still the same. The "system" won't reject anything. I do this all the time with no issues. I don't have to google anything, I do it, and it works. Again, this is not correct information and I wish you would stop posting about it.

Ok if you say so... You can believe what you want. My information though is a 100% correct. I even have copies of actual receipts from the transactions.

AGAIN my lady works for the Bank in this department and I had her call her contact at paypal T&S... What is your source?

keep using it your way

[newjerseymax]

Notification of Change (also known as a Correction) is now required when (new) when a transaction is rejected. It had always previously existed. However now it is Mandatory!

Definition: A NOC is created by the Receiver’s
financial institution to notify the originating company
(via its financial institution) that: 1) previously valid
information contained in an ACH entry (Direct
Deposit/Direct Payment) is now outdated, and needs
to be changed; or 2) information contained in an
ACH entry (Direct Deposit/Direct Payment) is
erroneous, and needs to be corrected.

Again what this means if the Tran Number does not match then bank is required to send a NOC to paypal. They will then review the account and if the information doesnt match then account will be limited.

I have posted my advise. Anyone can take it how they want it. I know what I know and it benefits me well. You do it your way if you feel it benefits you.

Here is nice little PDF link that you refuse to google (for others)

http://www.regaltek.com/docs/Underst...%20a%20NOC.pdfhttp://www.regaltek.com/docs/Underst...%20a%20NOC.pdf

[First Edition]

I used checking/savings interchangeably, and almost always ignore what I select in paypal. This isn't relevant to stealth. You're wrong and the info you're posting in this thread isn't helping anyone.

[kabatzas]

Originally Posted by newjerseymax

Notification of Change (also known as a Correction) is now required when (new) when a transaction is rejected. It had always previously existed. However now it is Mandatory!

Definition: A NOC is created by the Receiver’s
financial institution to notify the originating company
(via its financial institution) that: 1) previously valid
information contained in an ACH entry (Direct
Deposit/Direct Payment) is now outdated, and needs
to be changed; or 2) information contained in an
ACH entry (Direct Deposit/Direct Payment) is
erroneous, and needs to be corrected.

Thats all correct, but it does not affect the stealth or change anything.
Millions of transactions take place every day and the ACH, BACS ("A" stands for Automated) an all the other similar systems worldwide work using just 2 things:

1. the routing number

2.the account number....and thats about it!

*for international transactions its the same (just the codes are alphanumeric)

Nobody looks at the name unless:
1. something goes wrong ie. invalid account number
3. the bank is a "sub-bank", meaning it holds its accounts inside another bank. In this case a ref. number is needed to allocate the funds in a sub-account and the work is done manually. However these types of accounts do not work with paypal anyway, with only a few exeptions like E*trade.....because e*trade used to work with 111111111*22222(not sure if it still does) where 1111111=account number, and 22222 =ref number and this automated it.

The reason they don't use the name is because it would make a mess, and they will need a different system for business or client accounts which can accept third party funds, and this includes the "sub-bunks" I mentioned above...thousands of names in the same account number.

But lets say they notice it....and its a totally different name....what would the bank do?? Their first move is to call you and ask why is the different name. They not file a NOC for the name on their own, because there is no such requirement in the system.

The NOC code for change of name is C04 and it is used when the Customer has changed name.

The "tran number" whatever that is you referring to....plays no role in the transfer. It could only be a reference number for the customer and/or paypal record keeping.

How do I know???? I did some work for a company making customized software for financial institutions. I know these systems from the inside!

And the best proof is that nobody is reporting problems

[First Edition]

Originally Posted by kabatzas

And the best proof is that nobody is reporting problems

That's what it all boils down to.

[newjerseymax]

Originally Posted by kabatzas

Thats all correct, but it does not affect the stealth or change anything.
Millions of transactions take place every day and the ACH, BACS ("A" stands for Automated) an all the other similar systems worldwide work using just 2 things:

1. the routing number

2.the account number....and thats about it!

*for international transactions its the same (just the codes are alphanumeric)

Nobody looks at the name unless:
1. something goes wrong ie. invalid account number
3. the bank is a "sub-bank", meaning it holds its accounts inside another bank. In this case a ref. number is needed to allocate the funds in a sub-account and the work is done manually. However these types of accounts do not work with paypal anyway, with only a few exeptions like E*trade.....because e*trade used to work with 111111111*22222(not sure if it still does) where 1111111=account number, and 22222 =ref number and this automated it.

The reason they don't use the name is because it would make a mess, and they will need a different system for business or client accounts which can accept third party funds, and this includes the "sub-bunks" I mentioned above...thousands of names in the same account number.

But lets say they notice it....and its a totally different name....what would the bank do?? Their first move is to call you and ask why is the different name. They not file a NOC for the name on their own, because there is no such requirement in the system.

The NOC code for change of name is C04 and it is used when the Customer has changed name.

The "tran number" whatever that is you referring to....plays no role in the transfer. It could only be a reference number for the customer and/or paypal record keeping.

How do I know???? I did some work for a company making customized software for financial institutions. I know these systems from the inside!

And the best proof is that nobody is reporting problems

Some great info. I would love to spend some time picking your Brain if you ever have time...

Well... I wont try to contradict your info as it can be very useful for some. However I must disagree that the rules and laws regarding NOC have changed recently and now IS required for them to report directly to the business and not the customer. Why? Anti-terrorist laws. I see you say you did some software work for companies then you should be well aware that financial law changes on constant...

I must also disagree that nobody is reporting issues. Actually there have been quite a few threads on people getting limitations recently right after initial bank deposits. The threads are allover the site.

Anything anyone says on here always has to be taken at face value or how do they apply to "me" and how does this effect my strategy. I am not asking anyone to believe in what I post. Its not a requirement... lol

However, I can only tell you where I get my knowledge. My lady works in Fraud department for a large bank. One that many use here. She has her degree worked in the field for 15 years and every 3 months has to travel several hundred miles to take classes informing her of latest changes and updates. She is "volunteers" on the board for the bank that decides how to submit changes in software. Basically the one who helps decide what the programers like you change in the system.

Now the question specifically arose regarding paypal and bank deposits. I asked her many things about it and asked her to call her contact at Paypal T&S to find out. She took it a step further and I actually have a copy of "receipt" (they call it something else). From transfer pp to bank and from bank to pp. Doubt me if you like, however rest assured a Tran number does exist.

So anyhoot... Again its take it as face value on if you want to use my information or not. However saying something doesn't exist simply because you don't know it exists is ludicrous.

Take note I am already successful at stealth, eb and pp. I really have no agenda to provide false info.

[kabatzas]

If I have time.......
Please don't bring the time issue up...... it makes me sweat at the moment.
I work 20 hours per day and still it is not enough to do the job. (long holiday coming up next month though)

Anyway....I think you are referring to the "batch number" for ACH
This number has nothing to do with the individual account holders.... it is what it says....a number for a batch of transactions.

Yes they have to report problems, but as I said they will not look at the name. The transactions are automated, and it does no matter if the receiving account is savings or checking, as long as it can accept the ACH transaction.

Bottom line is.....why would paypal limit you because you selected "checking" instead of "savings"?

Personally when I had my first bank account and went to withdraw some cash, there was this question on the screen "withdraw from savings or checking?". Well I didn't know the difference, and I don't remember what I selected.....but it worked

So guess how many people will be doing the same in Paypal....

[rsot]

As long as the account can accept direct deposit, it should be fine.

[newjerseymax]

"Bottom line is.....why would paypal limit you because you selected "checking" instead of "savings"? "


I will use ally as an example:

Simple...

When signing up for paypal you check-off that you own checking instead of savings. Although your account is really savings at the ally bank. Once pp makes micro deposits to confirm account. The transaction is "rejected" by the bank system because the "Tran Number" (the number that represent checking or savings). is incorrect. Why? Because you put checking into pp and its really a savings. Common sense will tell you if it didnt matter they would never ask! correct?

Now once its rejected by ally bank they are NOW requires to send a NOC (notification of change) to paypal. Paypal gets this memo through the system. They check to see what the error is and see names dont match. Account limited.

I honestly have personally tested this. With the bank she works at. Sure enough the micro deposits get rejected and she would have been requires to notify paypal. Might be also why some people are seeing deposits coming back out lately and other not.

tested and tried...

A lot of people have reported closing of paypal accounts after micro deposits. Not limited to one bank. Could it be possibly then those people made that mistake?

[kabatzas]

OK .... I have all the facts now and I was wrong about the incorrect account type selection importance.

The facts are:

1. The customer name importance is debatable and it depends on the bank. It will not trigger a NOC on its own.
BUT....
2. Incorrect selection of savings/checking account will trigger a NOC which will contain all the transaction details (including the customer name) and the following correcting instructions:

a)Field to be corrected: C05 - INCORRECT TRANSACTION CODE (Type of credit)

b)Correction: 31 - SAVINGS CREDIT

This is because the SAVINGS CREDITS are included in an ACH batch containing only deposits requiring 0% reserve, instead of around 10% reserve required to be kept by the bank for DEMAND CREDITS (checking accounts).

Notification of Change (NOC) does not cause ACH funds return, as this would defeat the purpose. So you will receive your money, but paypal may notice the name discrepancy on the NOC.
There are 2 ways to file a NOC and it depends on the system your bank uses.... a)manual and labor intensive NOC or b)electronic NOC.
Now the question is....Do paypal agents look into the NOC records (most probable in manual NOC) , and if yes, do they pay much attention to all the details and consequently spot the name ? ....or they just quickly approve the code change? I don't know!

So I would advise selecting the correct type of account to be safe.

[GreenBean]

Bottom line is

some banks are more tolerant.
some banks are not.

A (sensible) customer will act to minimize problems with their bank transactions related to
paypal

[First Edition]

It's a silly argument. Having a checking or savings on paypal has no advantage over the other choice. If having a CHECKING account on paypal made it better, INSTEAD of a savings, I could see the problem. But it doesn't matter. I think this discussion needs to be in a new thread.

[oge]

I back up NJM 100% on his claims. I've tested it put savings on a account that was checkings account was toast everytime I was actually confused as why it was happening.



Try it yourself as mentioned in this thread.


http://www.aspkin.com/forums/subscri...-question.html

[Sandy D]

I actually have more saving then checking.

If a bank charges me for moving money out of a savings I use their checking.

Many saving accounts I have do not so for me they both work the same.

[First Edition]

I do it all the time with no issues, ever.