Just wanted to share some experiences I’ve had with PayPal with the Monzo Current Account.

I added the CA to the Wallet section no problem, tested out withdrawing money - the first time it took 24 hours as they were doing a security check - once that passed - funds now instantly transfer to the account!

Setting this up was really fast too - Paypal send a code to the app and it popped up instantly - this is via a 0.01 transaction which is then refunded.

Where I have been having some issues - I have a PayPal credit agreement - I first tried to pay my monthly payment using the card (not the Bank Account) - this seemingly went through but then I had an email saying it had been rejected - tried it again (same process) and was rejected again a day later. I then tried to pay it via the bank option and it is currently pending - as it is a direct debit I have to wait 5 days - I will let you know if it goes smoothly - should hopefully be by Wednesday.

Just wanted to share my Paypal experience with anyone considering setting it up or having issues.

Still unsure why the card payments were declined but hoping after the direct debit goes through it will work from now on.

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I also had the same issue. I phoned PP Credit Customer Support and they explained as the PP payment system sees MasterCards as credit cards regardless of Debit, Credit or Prepay, you can’t pay your credit account by card payment (because you can’t pay credit with another credit card).
I just top up my account from my bank account funding method and pay the amount I need to from my balance.


Brilliant. Thanks so much for shedding some light on that! I will continue to pay with the Bank Account option!

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Did the exact same thing but paid with a different card instead. I hope this issue can be resolved quickly as PayPal must not be the only one with this issue.

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Did the direct debit work for you?
I have the same issue and PayPal is trying to charge me 12£ for late payment if I don’t get it sorted…

If they did try that, I’ll dispute it quite harshly with them (and consider getting the financial ombudsman involved). They state they accept debit cards for payment, they accept Mastercard and this is a Mastercard Debit (which can be BIN checked etc): therefore by their own statements, they accept the payment. I’m sure the ombudsman will look down on them saying “It’s a bug in our systems”…


Yes, but this is PayPal we’re talking about. My experience is that customer service is non-existent and everything about them is just… awful. Forced DCC, customer service that doesn’t even respond, just… lots of issues. Better to avoid the fight in the first place when you’re dealing with such a company.

I should find out tomorrow if it worked - it takes 5 days to set up. Looking at my Paypal agreement though there hasn’t been any red flags about no payment just yet!

@richyb thanks I shall use this to tell them I shouldn’t be charged! Still waiting for their reply though… I’ll update it once I get a message.

Just to clarify, PayPal are in the wrong here. They are in breach of MasterCard regulations by failing to accept all MasterCard Debits (as they state they do) so any kind of late payment penalty would be unenforceable. The Financial Ombudsman would very quickly come to the same conclusion…!

This is both completely true, and completely not a fight I’d want to have, especially with a company as difficult to deal with as PayPal.

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Just a quick update - the direct debit worked! Woke up with a notification this morning :slight_smile:


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