Author Topic: PayPal Demand for ID Information -- Quesetions Answered; Thanks to All  (Read 777 times)

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Venus193

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Does anyone else use PayPal for an online or other business?  I just tried to put some money into my account from the checking account I linked it to three years ago and now it refuses to allow me to deposit money there without a copy of my photo ID, SSN card, and a utility bill showing my address. 

Also, about a year or so ago it holds newly transferred funds for 5 business days before you can use them.

Are these things I should be concerned about or is there an alternative service I can use?
« Last Edit: March 22, 2014, 05:46:20 PM by Venus193 »

whatsanenigma

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Re: PayPal Demand for ID Information
« Reply #1 on: March 22, 2014, 04:10:12 PM »
Coincidentally, I just started using my paypal account again after several years of not using it.

The only problem I encountered was that I had to re-verify my checking account, using the thing where the make two tiny deposits and then you have to tell them what those were.  This is despite a small change to my last name in the meantime, though the checking account itself is the same one I had when I originally joined.

Maybe I would call them directly if I were you. Maybe somehow you've gotten linked into a spoof situation.

JenJay

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Re: PayPal Demand for ID Information
« Reply #2 on: March 22, 2014, 04:39:32 PM »
There's no way I'd ever supply copies of my SS card and picture ID to anyone online. That sounds way over the top. I'd find another payment method.

whatsanenigma

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Re: PayPal Demand for ID Information
« Reply #3 on: March 22, 2014, 04:42:54 PM »
There's no way I'd ever supply copies of my SS card and picture ID to anyone online. That sounds way over the top. I'd find another payment method.

If it turns out this is an actual demand from Paypal, I would agree with you, but I just have my doubts that it is, that there isn't some kind of misunderstanding or spoof involved.

I think I would try to get more information first.

ETA: And I'm not saying it is for sure not a demand Paypal itself is making.  It might be, though I have never heard of them doing that.  I'm just saying, I think it would be better to find out more.

nayberry

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Re: PayPal Demand for ID Information
« Reply #4 on: March 22, 2014, 04:46:52 PM »
go to paypal from your search bar, not the email. 

this is a normal request from them, happens a lot in the UK too.

lady_disdain

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Re: PayPal Demand for ID Information
« Reply #5 on: March 22, 2014, 05:00:10 PM »
Yes, Paypal does require ID, SSN, proof of address, etc, if you receive money routinely in your account. In this case, Paypal is being used as a bank (making deposits and withdrawals) and will require the same documents that are necessary for an account in a bank. If you just use it to pay with a credit card, then it is just processing payments and documentation isn't required.

I believe the other credible services will have much the same demands if they are used for business purposes.

JenJay

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Re: PayPal Demand for ID Information
« Reply #6 on: March 22, 2014, 05:07:21 PM »
Yes, Paypal does require ID, SSN, proof of address, etc, if you receive money routinely in your account. In this case, Paypal is being used as a bank (making deposits and withdrawals) and will require the same documents that are necessary for an account in a bank. If you just use it to pay with a credit card, then it is just processing payments and documentation isn't required.

I believe the other credible services will have much the same demands if they are used for business purposes.

Actually that does make sense otherwise people could use it to avoid paying taxes on income. Still, submitting it online would make me very nervous. Maybe there's a contact you could speak to on the phone and then fax the info? I don't know if that's much more secure?

whatsanenigma

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Re: PayPal Demand for ID Information
« Reply #7 on: March 22, 2014, 05:13:15 PM »
Yes, Paypal does require ID, SSN, proof of address, etc, if you receive money routinely in your account. In this case, Paypal is being used as a bank (making deposits and withdrawals) and will require the same documents that are necessary for an account in a bank. If you just use it to pay with a credit card, then it is just processing payments and documentation isn't required.

I believe the other credible services will have much the same demands if they are used for business purposes.

Actually that does make sense otherwise people could use it to avoid paying taxes on income. Still, submitting it online would make me very nervous. Maybe there's a contact you could speak to on the phone and then fax the info? I don't know if that's much more secure?

These are good points.  I don't ever have a need to accept money via my paypal account.  I only use it for paying for things.  If that is really how it works, that they require such documentation, I am sure that others have expressed concern about how to submit it in the past.  I would assume if you contacted them for more information, there are probably alternative and safer ways to get this accomplished.

Venus193

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Re: PayPal Demand for ID Information
« Reply #8 on: March 22, 2014, 05:29:10 PM »
It's on their website; I didn't get an e-mail from anyone that I know of.  I got the account for my jewelry site (which has generated no income in the past year).

I use the account to pay for things sometimes but discovered today that it wants this information when it refused to let me put money into the account.  I realize this might be a safeguard against money-laundering but I resent the greater and greater intrusion into this information these days.

I've decided to call them on Monday morning.  Thanks.

PastryGoddess

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Re: PayPal Demand for ID Information
« Reply #9 on: March 22, 2014, 05:41:43 PM »
Yes this is normal for Paypal Merchant accounts.  The system used to submit the information is secure.  In fact most payment processors will ask you for that information. You are in effect opening up a bank account.  Most banks require several pieces of ID information in order to verify your identity.  Just because paypal is online doesn't mean that their procedures should be less secure.

Since you are using the account for a business, they may also hold a bit of the money coming in on reserve.  This is to protect against chargebacks. The best thing to do is to call them and explain how you'll be using the account.  While they do have specific protocols that they do not deviate from, they are willing to work with you.

For example, when I first signed up for a business account they held 20% of the funds for 90 days.  I got them to drop that down to 30 days