Money disappearing from Wise account?!?!? (ex. TransferWise)

[tomwis]

My setup is this:
1. I collect payments from customers via PayPal
2. Then I send them from PayPal to Wise
3. From Wise to my bank in home country.

Yesterday I have noticed payment went out from my Wise account to PayPal! but I didn't authorize. It turns out there was a "Direct Debit" set up on my account in Wise, which triggered a transfer. Actually, there was also a second "Direct Debit" before, which was used by PayPal for bank number verification - they sent me 2 micro transfers and then automatically total amount of these 2 micro transfers was sent back to them. Yeah, it seemed odd, that I don't have to do anything to send money ourt but I didn't panic nor investigate, because the verification process was clearly communicated to me. But this new "Direct Debit" ??!?!?!?!

Note: yesterday I hit a negative balance in my PayPal balance. I had freshly sent all money to Wise and then one client opened a dispute, so this instantly made a negative balance. I have some suspicion this might have been a penalty from PayPal, but it is not confirmed, plus I cannot find such penalty in any PayPal Fees Table.

My bottom line here is - is money not safe in Wise account? Can external party just take it from there only knowing bank account number?

Has this happened to anyone before?

 

[Marzio]

I hit a negative balance in my PayPal balance.

I think this is the problem. Leave always a couple hundred buck on PayPal in case of disputes.

 

[NicolasMaduro]

Pretty standard. Stripe also does direct debit if you hit a negative balance.

 

[tomwis]

If this is so standard, then why nobody at Wise nor PayPal support even mentioned that? Do you guys know any link (on PayPal I assume) under which I could read more about this procedure?

 

[Martin Everson]

Yesterday I have noticed payment went out from my Wise account to PayPal! but I didn't authorize. It turns out there was a "Direct Debit" set up on my account in Wise, which triggered a transfer.

So you setup direct debit with PP. Once you do that they take what they want see below.

https://wise.com/gb/blog/paypal-direct-debit-instruction

My bottom line here is - is money not safe in Wise account?

Yes

Can external party just take it from there only knowing bank account number?

No

 

[tomwis]

Thanks Martin, that's some good explanation there.

 

[Elve]

When registering a bank account in Paypal, there is the possibility of accepting or not direct debits, it is best not to accept and only use the registered account for withdrawals to avoid such problems.

 

[uplana]

When registering a bank account in Paypal, there is the possibility of accepting or not direct debits, it is best not to accept and only use the registered account for withdrawals to avoid such problems.

Totally agree, it make zero sense to setup / allow direct debit for your PP account.

 

[Vampp]

The answer is already given and I'm late to the party.

Although I would like to add a little off-topic " This is one of those reason you should NOT empower any entity too much, private or state " .

 

[sonny84]

Totally agree, it make zero sense to setup / allow direct debit for your PP account.

How can we set up NOT to allow a direct debit from our Wise account? Or where can I check this settings?

Thanks!!

 

[Martin Everson]

How can we set up NOT to allow a direct debit from our Wise account?

Don't agree to any DD mandates.

Or where can I check this settings?

"Account" > "Direct Debits"

 

[sonny84]

Don't agree to any DD mandates.



"Account" > "Direct Debits"

Hi Martin,... ""Account" > "Direct Debits" you mean in my PayPal account or Wise account?

Because I don't find neither Account or Direct Debits on my PayPal account.
If I go to settings on my PayPal account I see differnts options: Account (without anything about debits), Security, Info and Privacy, Payments, Notifications, etc

Thanks in advance

 

[Forester]

""Account" > "Direct Debits" you mean in my PayPal account or Wise account?

Definitely, it concerns Wise account. I do not have my own account there; but Direct Debit (a payment instrument) means that you allow someone to take money from your account at Wise, so you must inform namely Wise about your decision, so you maintain it in Wise interface.
HTH.

 

[Martin Everson]

Hi Martin,... ""Account" > "Direct Debits" you mean in my PayPal account or Wise account?

Wise