PayPal + other card processors sharing Info + Account NAME with ING, and other banks

[Modee]

Bad news - many banks are now sharing your account holder name information with payment processors, including with PayPal. When the PP name and the bank account name do not match, both are shutting you down. ING Bank appears to be one of the worst offenders, although there are reports that Bank of America is starting to report too.

[Modee]

I open Washington Mutual (WAMU) accounts (now Chase) all the time. No fees and free checks every time for me, no matter what I do or how little I put in the accounts. And one phone call to my banker and any fee is reversed.

You gotta understand, every new account you open with your WAMU/Chase banker in person is $11. in his pocket. He wants your business.

[Modee]

The latest on ING - ING and PayPal share information. This is verified based on a conversation I personally had for a client with an ING Bank Supervisor. Not hearsay, facts. When you try to link an ING account with a PayPal account PayPal transmits the account holder name over to ING. If the name on the ING account does not match the name on the PayPal account, ING shuts down all of your iNG accounts. Furthermore, they are stating that they will report abusers for bank fraud, although technically the fraud is on the PayPal side and so far we have no reason to believe that PP will report someone for something like this.

In other words, PayPal is NOT dead with ING. It's just that PayPal is reporting your account name to ING and if this does not match, your ING accounts are being closed.

It appears that more and more banks are verifying the name on the bank account versus the name on the merchant processing account. Time was they could not do that, but this is changing. Beware.

So when you try to add a bank account to any sort of online deal, EBAY, PayPal, Google Checkout, Google Adwords, etc. and it fails - Beware! this may be the issue. Currently (and this is all new!) when you try to ad a bank account to a Google Adwords account, the system asks for the account holder's name right then and there, on sign up, and the billing address on the bank account! Another client of mine has had zero success with trying to fudge these two fields - when the account holder name does not match his Adwords account name, or the bank account billing addresses do not match, his Google Checkout accounts have been shut down. Again, facts, not hearsay.

Now I do have some older PP and GoogleCheckout accounts where the bank account name at Washington Mutual and Bank of America have nothing to do with the names on the credit card processing accounts. But...who knows, maybe in time I will have issues. This is something new and something to be noted.


Now what I would like to know is: for anyone for whom this has happened, have the PayPal accounts been subsequently shut down as well? I do know that when it comes to Google Adwords it appears that when this sort of "account name verification" happens the Google account is shut down as well. People I know have been having their Google Checkout accounts shut down lately too. So - this sharing of info appears to be traveling in both directions!

UPDATE: We are starting to receive anecdotal evidence that this is happening. Not yet confirmed.

[tiredofebay123]

What about HSBC Direct?

[Modee]

Bank of America and especially WAMU/Chase seem to be good. I have no personal experience with HSBC.

[Modee]

I post only about the ones I have personal experience with, and WAMU/Chase works like a charm for me. There are some others that have worked for me in the past, but at present I use WAMU/Chase exclusively.

Another good thing about WAMU/Chase is that they charge nothing if you use their ATMs to withdraw money from PayPal using PP's ATM debit card. For such withdrawals, the only charge is the mandatory one dollar at the PayPal end.

The Short List includes the list of the latest updated banks that work with PayPal - I would rather not post the most recent updated list publicly.

[asdf123]

I just wondering if i add a bank account in my country into paypal account by now, will paypal get to know my bank account holder name as well? Because i used the bank account to withdraw remaining money inside my previously permanent limited paypal account. Then i plan to open a new paypal account with paypal account holder name same with the bank account holder name that i used. I worry will get linked by them if they know the bank account holder name. So far for now bank account in my country can only be use to withdraw the fund from paypal, so i dont want risk on using credit card to withdraw the fund because i will less one choice to fund in the paypal account.

[Modee]

Read the thread - maybe yes. The Short List explains a way to get around this even if the bank does report your account holder name to PayPal.

[toots]

Do you have any idea if they are sharing your address as well? Or just your name? I'm not so worried about them seeing the same name. I have a very common name. When I look in the phone book there are over 20 other people in my city with the same name. If ebay / paypal shuts me down because of my name I'd be kinda surprised.

[Modee]

The issue is not how common your name is, but whether it matches the name on your EBAY/PP accounts.

EBAY/PP do not generally use this method to get your address, no.

[Modee]

By the way, I'd like to add that Wachovia works for me too. I trust they will keep working once they switch to Wells Fargo!

[sanandreasfire]

So do you keep opening accounts in your own name? At the same company (bank?) ? I didn't know you could have more than one type of each account with a bank.

Please explain.

[sanandreasfire]

I realize that opening accounts in a name other than your actual one, then using that account is highly highly illegal.

[Modee]

You must open a tech support to understand this process. Otherwise you are just guessing - wrongly - at the right way to do things.

[Dr.Yes]

Modee,

Have you tried Wachovia lately? I used it a few months ago, wachovia shut the bank account down! I called the bank, they said the names didn't match on the direct deposit, and it looked suspicious. I haven't been a long time wachovia customer, but I'm pretty sure it doesn't work to withdraw money from paypal. Any thoughts on this?