PAYPAL has been hit by a massive global outage, leaving thousands of customers unable to log into their accounts.

According to malfunction website Downdetector, the problems started this morning around 11 a.m.

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More than 6,323 complaints have been registered on the site, with customers reporting that they were unable to log into their PayPal accounts.

It is understood that the issue is impacting both business and personal accounts.

Frustrated customers have taken to social media to share how they are affected by the outage.

Users have said that when they try to log in, they are greeted by the following message: “Some information is incorrect. Please try again.”

Others have said they are having trouble reaching PayPal’s call centers.

One person said on X (formerly Twitter): “Looks like PayPal is having a complete meltdown as no one can log in or get through through their call center.”

Another said: “PayPal hasn’t said anything about it yet which is unacceptable.”

A third said: “PayPal seems to be offline across Europe, Asia and other countries Australia. This is a major concern.”

A memo on PayPal’s website acknowledges the issue, stating: “We are experiencing a system issue that may impact multiple products.

“Traders may experience a greater number of errors.

“Our technical teams are actively working to resolve the issue.”

PayPal has been contacted for comment.

PayPal is a widely used online payment system that allows individuals and businesses to send and receive money electronically.

It acts as an intermediary between your bank account or credit card and the merchant, providing a secure way to conduct online transactions.

Customers can even borrow through PayPal with PayPal Credit.

However, when you use PayPal for online purchases, you often lose the protections afforded by Article 75 consumer rights and the chargeback rules available to those who pay directly with their credit card.

Section 75 protection can help you get your money back if something you buy is faulty or not delivered.

With chargeback you can ask your bank to reverse a payment if there is a problem, for example if you don’t get what you paid for.

Can I claim compensation for the malfunction?

Unlike telecom companies, banks and e-money companies such as PayPal do not have to pay compensation to customers if services have declined.

But if you incurred charges due to service issues, you may be able to get your money back.

For example, if an invoice payment was missed due to a glitch and you were charged for missing it, you should be able to claim that money back.

To make a formal complaint to PayPal, visit paypal.com/uk/cshelp/complaints.

The office says it aims to respond to your complaint as quickly as possible.

However, depending on the complexity of the issue, it may take up to fifteen working days for payment complaints and up to eight weeks for all other complaints.

What happens if PayPal doesn’t play ball?

If you are not satisfied with the way PayPal is handling your problem, you can contact the free Financial Ombudsman Service (FOS).

It is an independent body that will consider the evidence you provide and make a fair decision about what action a bank should take.

The FOS can usually intervene 15 days after you report your concerns to the bank.

In the event of an IT system failure at banks and electronic money companies, any compensation depends on your circumstances and whether you have suffered damage as a result.

If it believes this is the case, it has the power to tell the bank to refund any fees, charges or penalties you have been hit with, for example if you are unable to pay a credit card bill or your mortgage lender.

It can also tell a bank to pay you for money you haven’t received, such as interest, if you can’t deposit the money.

To refer a complaint to the Financial Ombudsman Service, visit financial-ombudsman.org.uk.