What does a Paypal Direct Debit mean?

[Jann11]

Always on my bank statement Paypal will appear with the merchant name following.  Lately i have found seven payments that simply state Paypal and announce it as a direct debit.  The largest of these was for £150.  What does this mean?

I checked my account fully and seems there is a direct debit to Paypal listed although i never set one up.  Wouldn't have thought i need one with paypal.   I have cancelled this. 

Can anyone enlighten me please?

[sharpiemarker]

@Jann11 

Direct debit transactions is when you pay with your bank account through a mandate supposedly set up when verifying your PayPal account with a bank account.

1. Getting Verified

To obtain Verified status you must complete the following steps depending on your Account status:

UK customers:

Personal Account holders: Either:

1) Set up Direct Debit and complete the Bank Confirmation process; or

2) Be successfully approved for and activate PayPal Credit.

3.3 Bank accounts. By linking your bank account as a Funding Source, you are providing PayPal with a continuous authority (subject to the terms of the mandate used by your bank to set up and maintain that authority) to automatically charge your bank account for the amount necessary to purchase E-money in your Balance:

• required to cover a Payment Order to another User (plus transaction fees payable to us) when the bank account is the applicable Funding Source for that Payment Order pursuant to this Agreement: or
• when using the Add Funds functionality in your Account interface.

You give PayPal the right to resubmit any debit you authorised that is returned for insufficient or uncollected funds. If you cancel any direct debit (including, without limitation, any SEPA Direct Debit), you agree to reimburse us for the value of any goods or services that you have consumed with the proceeds of that direct debit.

You agree that when PayPal receives a payment from your bank account to obtain E-money in your Account, PayPal may hold the funds in your Reserve Account for so long as PayPal determines that an NSF Risk exists. In such an event, the E-money will not be made available to you in your Payment Account (including for the execution of any Payment Order that the bank payment was made to cover) until PayPal determines that the NSF Risk has passed. Until that time the bank payment will appear to you as “Uncleared” in your Account details. PayPal is not in possession of all the information necessary to place the funds from your bank payment at your disposal until it determines that the NSF Risk has passed. 

PayPal reserves the right to require you to fund your requested payment by the use of Bank Account - eCheque to mitigate risk (including, without limitation, the NSF Risk) associated with your Payment Order.

[Jann11 · Accepted solution]

So basically it's payment for purchases but made a different way.

Many thanks for prompt help!