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Banks that are Blacklisted from PayPal?

Discussion in 'Ebay' started by big213, Aug 7, 2014.

  1. big213

    big213 Newbie

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    I'm wondering if some banks and/or routing numbers have been blacklisted by PayPal? I've been making new PayPal accounts and adding bank accounts just fine for the past few months, but just starting about a month ago, I started getting my brand new accounts automatically limited 5 seconds after adding my bank account. The message I'm getting is: "Since this is a new account, we'd like some additional information to help confirm your identity." Of course, I've taken all precautions in creating this new account, and the only information I supplied to result in this limitation was the Routing Number and the Account Number. Since the Account number cannot be traced back to a person in just 5 seconds, I'm guessing it is the routing number of a particular bank that has been blacklisted by PayPal.

    Anyway, I have read some topics similar to this about how certain banks that don't check names are blacklisted, but those threads were from a long time ago. This phenomenon just started about a month ago for me, so I thought this was something new that PayPal just introduced. This seems really aggressive though -- I'm sure there's a lot of regular users who actually use Ally Bank, and now it seems that PayPal is going to make it a lot harder for them to join. Any ways around this? And has anyone else been experiencing something like this recently?
     
  2. HostKnight

    HostKnight Registered Member

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    Possibly but it's probably due to your IP being listed or PayPal detecting a VPN/Proxy
     
  3. SirSmash

    SirSmash Registered Member

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    As far as I'm aware, yes Ally Bank is effectively being blocked. One of the larger sellers of eBay accounts quit using Ally Bank recently, there wasn't a public explanation but I suspect it's because Ally Bank just wasn't working anymore.

    The solution is find a bank that doesn't care about the name and lets you make a bunch of accounts. Personally I use Bank of America as they let you make a bunch of checking accounts online and they'll be opened instantly with online access. The only problem, each account will have a monthly fee. -- You can also try CHASE and get the premier checking account where they'll give you 10 "free" checking accounts (the first account comes with a $25/month fee). Overall in my experience, if you want a bank that just doesn't give a f*** what you do, go with Bank of America.
     
  4. PitneyBlowes

    PitneyBlowes Newbie

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    Al.ly stopped working a long time ago. Stay AWAY from them. There are plenty more that work fine.
     
  5. D4RK KNIGHT

    D4RK KNIGHT Regular Member

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    I have actually been using Ally recently and its been working fine.

    I guess it's a hit and miss bank.
     
  6. PitneyBlowes

    PitneyBlowes Newbie

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    I should've said it started giving people lots of problems a long time ago. I have heard of people still using it, but I won't take chances with a bank that many people also have issues with at the same time. Why some people have problems and some don't, I don't know. Just not worth the waste of time spent when there are many other banks that never have issues.
     
  7. jmt123

    jmt123 Regular Member

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    Adding either an Ally or Bancorp VBA causes an instant limitation the vast majority of the time now. Yes some people may have success using them but I wouldn't risk it. The limitation you get when you add them is actually pretty easy to overcome - just confirm the trial deposits and receive a pin number on the phone that's on your account, but it's never a good thing to start off with a limitation. And yes this is a very recent thing. Ally used to be okay at least for verification, but there have been quite a few changes in the last few months with ebay and paypal.

    About banking in general...

    There really aren't any true "best" banks because you can make any non-blacklisted ones work, or a bank that works for someone may not work for you, depending on your situation. The big banks are easiest for most people to use since they don't care about deposits with mismatched names and Paypal isn't just going to blacklist any of the biggest banks, but if you've never done business with one of them and then suddenly open up a bunch of accounts you could end up alerting their risk management (especially if you also close those new accounts rapidly, because the stealth accounts attached to those bank accounts were suspended, for example).

    I would go with a bank you already have a relationship with - go ahead and open a new sub-account (or two) with them. Whichever bank(s) that already know you will be a lot easier to open a few new accounts with because they won't care (especially if you stick with savings accounts - it's completely normal for someone to have a couple of them, one for a different savings goal such as a new car, new furniture, etc). But again, definitely don't open up a ton in a short period of time. Spread them out. If you're looking to try out a new bank, that's fine, but like everything else in stealth you should take things slowly. Just start with one account and let your relationship with that bank grow. Do some research as to which will work best for you in regards to fees, minimum balance, opening balance required, etc.

    There are so many banks out there, it's hard to say specifically which are great and which aren't, but a general guideline that I follow is: big banks don't care about getting deposits in random names, medium sized banks probably will care so you'll need to stick to variations of your own name for those, and small local banks will definitely care about getting a deposit in a random name.

    As of right now, Ally and Bancorp are the only two banks that I know of that cause the instant limitation when adding their routing numbers. There are some others that do cause various problems (usually involving deposits), but I wouldn't necessarily define that as being blacklisted (since that's the bank's policy, not paypal's).
     
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