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

I read somewhere that savings account doesn't work with paypal.. or you cant confirm the savings account. Can someone elaborate on this? Im on chexsystems but a friend at the bank opened me a checking account and I can make savings accounts easily. The problem is I cant just ho to to a bunch of banks opening more checking accounts. I was really hoping to use savings. Any info appreciated, thank you!

Paypal actually has no idea whether or not an account is checking or savings.

When you add the account to paypal, it asks whether it is checking or savings, and you might as well choose which ever is appropriate. Yes, paypal can debit funds from a savings account just as with a checking account. The difference between these two is that a bank will allow a small number of debits from a savings account, usually no more than 4 per month, including withdrawals... whereas a checking account is allowed unlimited debits/withdrawals, as in the name, checking, meant for writing checks :)

Also worth noting is that fees for withdrawal from savings accounts are much higher than for chequing. If your savings account accepts direct deposit (like payment from employer), paypal will be ok to use.

Usually it's 6 withdrawals per month and then you either have to pay a fee or can't withdraw at all for the month. Most larger banks (BoA, Wells Fargo I've confirmed) charge the full $10 per transaction after that. Some smaller banks (or perhaps even the larger banks if you have a large balance with them?) will eat the cost OR charge a reduced fee.

Actually it has more to do with federal regulation regarding a savings account.

ING allows 6 withdrawals per month, whereas bank of america allows 6. Although these banks will let you go past this limit from time to time, if you do it too much, they'll either close you down or convert the account into a checking account and stop paying you interest. The point in a savings account is to SAVE... and the banks don't want YOU to hang on to your money, they want it for themselves to lend to other people. :)

If you're in a situation where you need the funds quickly, use checking accounts. If you can hold out and make one withdrawal a week, savings is fine.

I've never heard of bank of america charging for transactions... although I have experienced them first hand converting a savings to checking..... they're nice about it. You'll get a few letters, and then they'll just let you know the account number is the same, and now you have a brand new checking account that is subject to monthly fees.

The bigger picture here...... Let's say you're a paypal stealther... and you want to use the bank account tied to your paypal account as a cashflow account... trust me, you don't want to leave any amount of money in whatever bank account you use for paypal... if paypal writes itself a check from your account, which you give them permission to do, you've got to fight along with the bank to get the money back. Most banks only allow 24 hours to file a dispute for an ACH transaction, aka automated clearing house, echeck, however you want to word it.....

I don't like paypal getting any of their grubby hands on my money, so in my experience it's better to use checking accounts, and clear the money out every day as soon as the withdrawal hits. Although, savings accounts are free most of the time, and easy to open and close with various banks....

Whichever one you choose, you need to manage your money!

correction... ING only allows 4 withdrawals per month.... typo, sorry :)

New bank.......
 

I just fornd this......so i thought of sharing :)

https://www.metrobankonline.co.uk/

Bank account in 15 minutes, open 7 days a week
Debit card and credit card straight away within those 15 minutes!!!
That will make ebay stealth a bit easier for sure!!
Lost card replacements on the spot as well, so you could probably switch acount numbers instantly too :)

It is a revolution.....but sadly only in London!!!!

looks like just a regular bank, ok they are quick to process or so they say but then again they are probably new and wanting business and have fwer customers so they can issue stuff quicker..still useful post

Savings does work, even if same bank dont worry your good!

Hi First,
I believe it is 6 as I did 6 last month on one account and did 7 on a separate account and got a warning that they would close the account if it happens again.
Not to doubt you as you are a ton of knowledge but I use Ing a lot myself.

I do agree with your removing the money but like you said you have to manager larger sums going out without going over the 6 limit withdrawl.

So, do the ING savings sub-accounts work ok with paypal???
Because I thought they cannot receive payments from outside, only transfers from the main ING account.
Can somebody confirm this.....ideally from the UK?
Thanks

ING in UK does not work.

As a banking regulator I can tell you that its Federal law that stipulates no more than 6 transactions from a savings account in any month. If you go over this limit 3 times in a rolling 12 month period the bank MUST close your account and refund you or roll your funds into a checking account. Just fyi

yeah when useing saveings do like me and w/d once pre week so u wont go over the six i had went over a few times by mistake and they called me out on it.

LINK Two Unique PPs: CHecking #1 and Savings #2
 

So today I opened up a new account at wells fargo. The usual Checking and Savings. My question is, can TWO UNIQUE PP accounts be produced, one PP account verified with Checking accounts info, and the second PP account (different info, all unique and separate from the first PP) verified to the Savings account info?
Or does PP realize that the Checking and Savings accounts are linked at Wells Fargo, and it doesn't work?

Yes, you can open two accounts.

so they cant link those two acc together??

Naw - just because 2 accounts are at a SAME branch does not mean they are linked. Ha that whole branch would be blacklisted.

Now if you put the SAME name for both accounts into pa yp al, well...you have ax'ed yourself nicely.

Experience: I have used 5 accounts from same branch for diff pa yp als. No problem

thanks!! i got it now!!

You should chose whichever it really is and use it. If you have checking then it must be checking on pp. The bank can and often will kick back deposits if on paypal you have checking and its Savings. Every deposit has to be overridden by a bank employee with higher level of system security. If they have a bad day or are tired of doing this for your account then they could kick back the deposit leading to suspension.

I now am beginning to wonder if this is the reason some people are getting kicked from certain banks repeatedly while others are not!?

that information is not correct

I've used a savings account with no issues.

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... :boink:

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.

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!

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 :thumb:

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. :thumb:

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

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.

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

That's what it all boils down to.

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. =}-

If I have time....... :tears:
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 :pop2:

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

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

"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?

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....:boom:
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. :pop2:

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 :peace:

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.

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

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.

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