European banks have seen widespread unauthorized direct debits from PayPal accounts, the German Savings Banks Association (DSGV) says.
The German newspaper Sueddeutsche Zeitung (SZ) reports that payments worth approximately 10 billion euros (£8.6 billion) had to be blocked after PayPal's fraud-checking system failed.
Payments were paused on Monday when lenders reported millions of suspicious direct debits from the payment firm.
The DSGV confirmed to the BBC there had been incidents involving unauthorized direct debits initiated by PayPal against various credit institutions.
The BBC has approached PayPal for comment.
It told Reuters that certain transactions from our banking partners and potentially their customers had been affected by a temporary service interruption.
We quickly identified the cause and are working closely with our banking partners to ensure that all accounts have been updated, the PayPal spokesperson stated.
The DSGV reported that PayPal acknowledged the disruptions and assured that the issue has been resolved. Normal payment transactions to and from PayPal have since resumed.
These incidents had significant effects on payment transactions across Europe, particularly within Germany, and supervisory authorities have been informed.
PayPal aims to filter out scams before they reach banks through a security system designed to combat fake direct debits initiated by criminals.
According to SZ, PayPal's filtering system failed on Monday, allowing unchecked direct debits to be sent alongside legitimate transactions to banks.
Following the report, shares in the payment firm fell by 1.9% on Wednesday.
