Is PayPal considered Direct Deposit?

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BoglesRazor
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Joined: Fri Jan 03, 2020 11:02 am

Is PayPal considered Direct Deposit?

Post by BoglesRazor »

I am in the process of bank churning for the bonuses. Everywhere I read, they do not consider PayPal as direct deposit. However, my funds were generated through sales through my online business. Generally I keep the payments in my PayPal balance. Hence, I'm wondering if I were to transfer these funds to a bank, would it count as a direct deposit since they were the result of earned income in PayPal's balance? Or does PayPal not distinguish the balance vs. peer to peer money transfers (borrowing like Venmo)? I am in the process of consolidating all my savings into one account so that's why I want to know before I move my PayPal balance into a savings account. Otherwise I will "waste" a direct deposit resource.
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Nate79
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Re: Is PayPal considered Direct Deposit?

Post by Nate79 »

Doctor of Credit is the best source out there. You need to look up the specific bank and see what does and doesn't count. My guess is the answer will be no.
02nz
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Re: Is PayPal considered Direct Deposit?

Post by 02nz »

Here's the list of data points by bank: https://www.doctorofcredit.com/knowledg ... -deposits/.

I don't think PayPal distinguishes between P2P payments and say an eBay sale, it'll look the same to the bank.

Vanguard and other brokerages tend to count as direct deposit (for many in retirement that's the "paycheck," after all). Nothing preventing you from pulling money from another account, having it sit in sweep funds for a few days until it's available to send out again, and then depositing to the new account.
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whodidntante
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Re: Is PayPal considered Direct Deposit?

Post by whodidntante »

The bank can tell the difference, but some apparently don't bother to make the distinction.
DrGrnTum
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Re: Is PayPal considered Direct Deposit?

Post by DrGrnTum »

02nz wrote: Wed Jul 01, 2020 10:26 pm Here's the list of data points by bank: https://www.doctorofcredit.com/knowledg ... -deposits/.

I don't think PayPal distinguishes between P2P payments and say an eBay sale, it'll look the same to the bank.

Vanguard and other brokerages tend to count as direct deposit (for many in retirement that's the "paycheck," after all). Nothing preventing you from pulling money from another account, having it sit in sweep funds for a few days until it's available to send out again, and then depositing to the new account.
Doctor of Credit is an excellent source for information on Bank Bonus. For a more granular source of information you could read the weekly post that are on the reddit churning site for Bank Bonuses.

There you will get a more current feel for what works.

I would give you the link but it seems that the B-Head moderators do not like links that point to the reddit site.
Just google “reddit churning”. The first site that comes up is the churning site. Call that site up and scroll down until you find the Bank Bonus topic.

Every week a new discussion is started on doing Bank Bonus.
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