As one of the world’s leading online payment systems, PayPal supports easy and fast money transfers in more than 200 countries. When you make a direct deposit to your PayPal account, you will get a message that your money will be held in a custodial account at Wells Fargo. So is PayPal Wells Fargo?
Wells Fargo is not PayPal, but you can link your WF bank account to PP. Wells Fargo only serves as a custodial account that can accept employer payments and US Government benefits.
If you wish to hold funds on your PayPal balance and your Balance Account is eligible for FDIC pass-through insurance, then the platform will deposit your funds to a custodial account at Wells Fargo. But let’s explain this more thoroughly.
Aside from online payments, PP offers several banking services, and direct deposits are one of them. A direct deposit account allows you to receive your salary or government payments automatically. That means you will not have to cash a check on PP or wait for the transaction to be processed. There shouldn’t be any money pending, and the money will be in your account instantly. Here are the conditions you must meet for a direct deposit account:
- You must live in the US,
- You must have a PayPal Cash Plus account,
- The depositor must be US-based,
- Only works for incoming payments.
All funds in your balance account are considered to be an unsecured claim against PP. It means that your balance is not eligible for Federal Deposit Insurance Corporation or FDIC pass-through insurance. However, some accounts are eligible for FDIC insurance, such as Debit Mastercard or Debit Card, and direct deposit accounts. This means your funds will be redirected to a custodial FDIC-eligible bank account, which is currently Wells Fargo Bank, NA. So, if anything happens to your balance, you will be covered by the insurance. The maximum insurance deposit is $250,000.
So we establish that PayPal is not the same thing as Wells Fargo. WF is a bank, while PP is an online payment system, and even though WF can do similar things as PP, there are things the online platform can not do – for example, act like a lender if you need a mortgage or issue credits. Even though there are PP credit cards, these cards come with high-interest rates and are, in fact, credits issued by Synchrony Bank. However, unlike linking Apple Card to PPl, which is currently not supported, you can link your Wells Fargo bank account to PayPal and use it to deposit and withdraw money on it. Just go to your PP account on the home page and find the linked bank or credit card option. Click on the “add bank account,” type information about your bank, and you will have to wait for verification to be finished. You will probably be charged a small amount of money for this verification.
You can use PP as a credit card if you link your WF credit cards with the platform. This way, all the purchases you make will be much faster and more efficient, and you will not have to search and type in card information each time you make a purchase. Here are the steps to take for adding cards to your PP.
|Adding cards on the Wells Fargo mobile app||Adding cards on the browser|
|Go to the “menu” option on the WF mobile app||Sign in to your WF account|
|Select the option “cards”||Go to the “accounts” menu|
|Tap “digital wallet”||Click on “Manage cards option”|
|Choose PP from the list of digital wallets,||Select “add cards to digital wallets”|
|Type in the information about your card and click add card||Select PP|
|You will be referred to a PP account to finish the process||Select from the list of eligible cards and click “add to PayPal”|
You Can Fund Transactions on PP Directly by Using Wells Fargo
Once you add your WF bank account to PP, you will be able to fund all transactions directly without the need to type the bank details. When you wish to withdraw funds from WF, all you have to do is go to a PP account (on the “wallet” option,) find the withdraw option and select the Wells Fargo card. However, this will only work if you have a checking and savings account – it will not work on credit card accounts. By using your bank account linked to PP, your funding of the balance will be instant, and you will be able to make the purchase without a waiting period. You can also make instant withdrawals from PP to your bank account with some fees applied.
To conclude, Wells Fargo is not the same as PayPal, but there is cooperation between these two companies. So if you have a direct credit account, your funds will be under the custody of WF, meaning if any reimbursement is necessary, if something happens with your funds, you will have to talk to their representatives. Also, when opening a PP account, make sure you pick the one that is eligible for FDIC insurance. Otherwise, your funds will not be protected. If this is the case, make sure you don’t hold money on your PayPal balance for a long time.