Ally Bank not working with PayPal anymore?

[NBbowler]

In the last week and a half, I've had my Ally Bank account de-linked because it wouldn't pay out the money I sent, even though the money was easily there.  And now yesterday I saw in my bank account that there was a reversal from Paypal, even though the money was sent to me from someone who was paying for something that she couldn't get in another way.  That money hasn't returned to my PayPal balance yet, as it was just done yesterday, and Ally doesn't process payments on weekends. I called Ally about this, and they said there's some problem going between them and PayPal that they're trying to resolve, but I'm not getting told of any timetable for when it'll be fixed.

Meanwhile on the PayPal side of things, when I try to add my account back, I verify my identity and find the eligible account, but when trying to finalize it, I get the message "We aren't able to process your request right now.  Try again later!"

This is driving me (as well as many other Ally customers, from what I've heard) crazy.  Can someone tell me what the problem is, how it gets fixed, and what kind of timetable I'm looking at?

[kernowlass]

@NBbowler 

Is it a digital bank?

Paypal does not support virtual / digital banks, you can sometimes add an account but it won't work properly and Paypal advise you against trying.

[JordanRebecca]

I've had the same issue and conversation with them. Via the app i could not add a card, but I was able to pay the charge that ally "rejected" using my card if I went to the website and paid the difference with my card. Now I have a payment in paypal that i'm trying to transfer to my bank, and i get the same message connecting the bank, and connecting a card doesn't make a difference. Re: "it's an online bank" i've been with Ally since 2016 and haven't had any issues with connecting with paypal until this past week. So I don't think that's the issue. Fortunately my husband uses a different bank so I will try to work it through there, but it's not really acceptable. I don't think this is a paypal issue though, i think this is an Ally issue.

[laf0525]

Just wanted to respond as I'm having the same issue and I've had this account linked for a long-time. I also had an issue with my Target card today that is lined to Ally as well. Wondering if it's an Ally issue. 

[applesong4]

I've had the same issue, Ally always used to work linked with Paypal but recently it stopped working. I called Ally and they said it is Paypal's issue but Ally people are working on seeing why it is happening or what they can do. Now to contact Paypal customer service and ask them.

[NBbowler]

I've been in contact with Ally and they said there was a problem with something on their end, and they're working with PayPal to sort everything out.  Ally has told me that they're sending me an email as proof of an error that I can forward to PayPal when I receive it so they can restore it and (hopefully) greenlight any future transactions

[Sjb19xci]

I’m having the same issue within the past two weeks. Out of nowhere they unlinked my Ally account and then said they couldn’t process any of my payments and it has caused orders of mine to be delayed even though the funds are there. It’s very frustrating, especially for them to not give any information to the customers. Horrible business. And now my PayPal account is showing -$10 even though I have my credit card linked. Once this is all resolved I doubt I will use PayPal anymore.

[NBbowler]

From what I’ve heard, it was actually Ally’s system. It had an error that started with a few transactions being reversed, which then spread to a multitude of accounts to where PayPal blocked Ally because these payments were being reneged on, and Ally and PayPal have been trying to communicate to fix the issue, especially after MANY Ally users have been complaining about it. I spoke with an Ally rep last night (Tuesday) and they were confused about how I haven’t received the proof of error letter/email to get my money correctly processed yet, but they said it would be here by the 24th. If not, call them back again.

[amrich11]

I am also having this issue. I have had my Ally bank account linked to PayPal for probably ten years with never a problem. Luckily, it's only a few small subscriptions and donations that have been rejected in the last couple of weeks. I hope that this issue is resolved soon because it's super frustrating!

[Sjb19xci]

I understand that it was an Ally issue, my problem with PayPal is that they also refused to charge my backup payment option (credit card not associated with Ally). It’s just frustrating and bad customer service all around 😕