In message 4774e3fb@qaanaaq, at 11:54:35 on Fri, 28 Dec 2007, Andy
Hall remarked:
No. They warned recently that payment to Paypal was to be treated as
a cash advance to top up another cash account for protection purposes
(although they don't seem to charge the extra cash percentage) and you
might want to think carefully before giving paypal a continuous
authority on your cards.

I wonder also about their requirement to have a direct debit
arrangement with a connected bank account in order to be able to
withdraw funds from Paypal

I do wonder what this is for, if not as a way to reimburse buyers when
the seller has emptied their PayPal account - but that goes against all
anecdotal evidence of what happens, and what the PayPay T&C describe. I
have yet to get to the bottom of this one, unless it is as simple as
being necessary to make the test payments to validate the bank account,
and for withdrawing funds (assuming the trader never uses PayPal-via-DD
to buy things himself, of course).

and whether or not the direct debit guarantee applies.

The trader sends them a classic Direct Debit form, so I guess the answer
is "yes".

One does wonder about having a company unregulated by UK law having
access to DD facilities.

The Financial Ombudsman will adjudicate disputes with PayPal.
--
Roland Perry