Why it is safe to link bank accounts to a PayPal account

This article includes tips, suggestions, and general information. We recommend that you always do your own research and consider getting independent tax, financial, and legal advice before making any important decision.

Considering the built-in convenience and safety, linking a bank account to PayPal can be a great option for those who make frequent online purchases, pay bills, or send money to friends and family.

This guide will cover what linking a bank account entails, the benefits that come with it, and how PayPal keeps transactions secure.

What does it mean to link bank accounts?

Linking bank accounts refers to the process of connecting one’s bank account to another financial technology company, such as PayPal. Linking to PayPal involves these three simple steps:

1. Log in to PayPal. Access the account and go to PayPal's digital wallet.
2. Add a payment method. Select the “Link a bank account” option and enter the necessary information to verify the bank account. Follow the verification process to complete the setup.
3. Start shopping. Once the bank account is linked, it can be used to make purchases or send and receive money through PayPal.

What are the benefits of linking a bank account to PayPal?

Linking a bank account to PayPal offers several benefits, including making payments and money management easy and flexible. Here’s a closer look at the advantages:

• Easily track spending. Expense tracking can be done all in one place by linking a bank account. This helps manage spending efficiently and offers a clear view of financial activity.

• Enjoy flexible payment options. With a linked bank account, Pay in 3* , a buy now, pay later, is available through PayPal (as repayments can be made by either linked bank account or debit card). Pay in 3 allows you to spread the cost over 3 payments.

• Manage transactions. The PayPal app makes it easy to manage money, simplifying the process of sending and receiving money, checking balances, and reviewing payment history.

Is it safe to link a bank account to PayPal?

PayPal employs strong encryption technology to protect financial data, helping that all personal information remains confidential.

PayPal has 24/7 fraud monitoring for suspicious activities. These features help both personal and financial data remain protected when using PayPal.

How to increase security when connecting a bank account

While connecting a bank account and adding payment methods to PayPal are straightforward, it remains important to follow best practices. These steps can help safeguard financial information and reduce the risk of unauthorised access:

• Add bank details in a private setting. Always input sensitive information in a secure, private location, such as at home or using a trusted Wi-Fi connection, to avoid potential risks in public spaces.

• Use strong, unique passwords. Choose a password that’s difficult to guess, incorporating a mix of letters, numbers, and symbols. Avoid reusing passwords across multiple platforms.

• Enable two-factor authentication. Turn on two-factor authentication to add an extra layer of security. This requires a second form of verification, like a text message or app code, before access is granted to the account.

• Keep software updated. Ensure that devices and apps used for accessing PayPal are up to date. Software updates often include important patches that protect against vulnerabilities.