No, it’s not 100% safe to link bank accounts to PayPal. Though PayPal is one of the safest and most secure online payment systems in the world. But you can always be a victim of phishing and online fraud.
Over the past few years, online shopping and the usage of PayPal or other payment platforms have grown significantly. With that online fraud and phishing have also increased at a frightening rate. So, a question appears, is it safe to link bank account to PayPal?
Well, in this article I am going to briefly explain how safe it is to link your bank account or debit cards to PayPal. What measures you should take to secure your Paypal account? and many more helpful queries so that you don’t lose your hard-earned money.
Let’s start by answering briefly Is PayPal safe to link bank account 2022?
Is It Safe To Link Bank Account To Paypal?
The answer is a bit more complicated than a simple yes or no. Because on one hand, PayPal uses state-of-the-art security for ensuring consumer financial data protection. But on the other hand, consumers are always the victim of phishing and online fraud which PayPal can not control.
According to data by the Tech Republic,
Around 25% of the American workforce falls for phishing emails and most of them are finance related.-Tech Republic.
So, around 25 out of 100 Americans are a victim of it. That’s not all, your account can also be hacked and perpetrators can take advantage of PayPal’s auto-withdrawal feature. Moreover, in 2021 PayPal CFO John Rainey himself admitted that
4.5 million PayPal accounts are illegitimate and are used for fraudulent activity.-John Rainey, CFO, PayPal
Though PayPal has Fraud Protection Coverage and you can get your lost money back if you report it within 60 days. But it has its limits and sellers don’t get an equal amount of protection as the buyers.
So, it can be risky to link a bank account with PayPal. But is it safe to link debit card to PayPal?
Is It Safe To Link Debit Card To Paypal?
Yes, linking a debit card to PayPal is safe. But if you are talking about 100% safety or payment protection then it’s not completely safe. Because in case of phishing and PayPal account takeover, hackers can drain your bank account using your debit card.
Linking a debit card with Paypal allows you to spend money without entering your bank account information every time you make a payment time.
Moreover, it’s safer because PayPal adds an extra layer of security to your debit card information by including 128-bit encryption and fraud detection systems.
However, even after all this extra security, your debit card balance is not completely safe. Because in case of a phishing transaction or complete PayPal account takeover, all your debit card balances can be taken by hackers.
Furthermore, these incidents are not protected by PayPal Purchase Protection. As a result, linking a debit card to PayPal is not the safest option.
Also, check out the link bank account without verification
Well, by now we have found out that linking a bank account or debit card is not completely safe. But what happens when you link your bank account to PayPal?
What Happens When You Link Your Bank Account To PayPal?
When you link your bank account to PayPal, you can add money from your bank account to the PayPal Balance or transfer money from PayPal to your bank account. Moreover, it helps you to verify your Paypal account.
PayPal works like a middleman between you and your bank. PayPal stores your bank account information in an encrypted server. When you make a purchase, if your PayPal account does not have enough balance then it automatically withdraws the money you need from your bank account.
In case you receive money on PayPal and want to withdraw it then you have to transfer it to your linked bank account and withdraw.
Here is a way to merge bank accounts from different banks. But can receive money on PayPal without linking a bank account.
Can I Receive Money On Paypal Without Linking A Bank Account?
Yes, it’s possible to receive money on PayPal without linking a bank account. You can even use it with PayPal merchants. However, you can not withdraw cash without linking your bank account.
Opening a PayPal account and receiving cash is pretty easy. You just need an email address and you will be able to do it. But to verify it you need to link a bank account. Because if the account is not verified then the amount you receive will be limited.
Moreover, without linking a bank account, you will be able to receive funds and use it anywhere you want. The only catch here is you can withdraw money from your PayPal account without linking a bank account or card.
Also, find out whether it’s possible to open a free bank account without an ID.
It’s time we find out if it’s safe to use PayPal with strangers.
Is PayPal Safe To Use With Strangers?
Yes, PayPal is safe to use with strangers. But only to a certain extent. Because there are hundreds of ways people can scam and take away your hard-earned money. So, it’s better to be safe and take advantage of PayPal’s “Goods or Services” option when using it with strangers.
PayPal employs a number of security measures to ensure that your information is safe. These measures include fraud detection systems, encryption, and a team of security experts who are constantly monitoring the site for any suspicious activity.
However, when paying for items from a stranger, it is always important to be aware of potential scams. There are a number of scams that can occur when buying items from a stranger online, such as the “Nigerian prince” scam or the “overpayment” scam.
Moreover, when paying a stranger choose the “Goods or Services” option to pay so that you get covered by PayPal purchase protection.
Lastly, let’s find out what measures should you take to protect your PayPal account.
How Can You Protect Your PayPal Account?
Here are some measures you can take to protect your PayPal and bank account
- Instead of linking a bank account or debit card, link a credit card with PayPal. By this, if you lose any money you can settle it with the credit card company.
- Send money to strangers using the “Goods or Services” option on PayPal.
- Check your PayPal statements every week.
- In case you need to withdraw from your PayPal account then link a bank account with a minimum balance.
- Enable two-factor authentication on your PayPal account.
- Never log into your PayPal account using a public PC.
- Use a unique email address and password for your PayPal account.
- Never use PayPal on public wifi.
- Do not save your PayPal login credentials on your browser.
- Never click on any link or payment request sent to you via email.
- Always update your PayPal app and your device’s operating system.
If you follow the above steps and be careful then both your PayPal and bank account will be safe.
I hope this article on Is it safe to link bank account to PayPal is helpful for you. If you have any queries do let me know in the comments.
Lastly, the safety of your PayPal and bank account completely depends on how careful you are. So, always be cautious to avoid any unfortunate event.
That’s it for today. Have a great day!