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Why Does PayPal Need my SSN and other Documents for Verification?

Why Does PayPal Need my SSN and other Documents for Verification?

You may be wondering, “Why does PayPal need my SSN and other documents for verification?” If so, you have come to the right site, as the following information will give you a better idea of why PayPal makes these requests. 

If you do not have a Social Security Number (SSN), you can definitely use an ITIN number instead. Apply for an ITIN number with EIN Express today!

When you use PayPal as a service, you make money transfer easier. The money transfer service enables you to buy items, make deposits to a bank account, or transfer funds to other PayPal accounts. To use the service, you normally must provide PayPal with your contact details, debit or credit card information, or your bank account number.

When you include the required sign-up information, you also have to establish a default method for payment. Using PayPal for any money transfer can save you time, and makes it easier to buy products or services, invoice business customers, or send online payments. 

When PayPal asks for additional information, such as a business EIN (employee identification number), ITIN (Individual Taxpayer Identification Number), or social security number (SSN), it does so for tax purposes or when you apply for PayPal credit. This additional information can be done securely and helps PayPal better serve its customers.

If you want to ask, “Why does PayPal need my SSN?” the usual reason is to verify the account user’s identity for loan repayment or for reporting income taxes. Both these reasons tie into being verified and confirmed. If you don’t have an SSN, you can use an ITIN number.

Again, the following information can give you a better idea of PayPal’s practices with respect to information collection and verification. We can help you apply today to obtain your ITIN number. Click here for a consultation on how you can get an ITIN number.

 

Why Does PayPal Need My SSN for PayPal Credit Repayments?

If you want to know “Why does PayPal need my SSN for paying back PayPal credit balances?” the answer, centers on identity verification and making sure that the borrower can repay the loan. PayPal needs the SSN to ensure that any money that is lent can be sourced and repaid.

Today, PayPal identity verification is important to the company, especially when it comes to sellers whose accounts are not verified. If your account has not been verified, you cannot use your PayPal balance to purchase items or services.

If a PayPal account has not been verified, the balance can only be held in the user’s PayPal account or transferred to a linked debit card or bank account. When accounts are not verified, the user cannot make purchases or send money. 

 

Why Does PayPal Need my SSN to be Verified?

When you ask PayPal, “Why does PayPal need my SSN to be verified?” you will find that PayPal is not being intrusive. The company is only collecting information to comply legally. 

Information Needed for Verification

When verification is required, the user must provide the following information:

  1. First name and last name
  2. Date of birth
  3. Physical business or residential address
  4. Social security number (as four digits) or an equivalent (ITIN Number)
  5. EIN (Employers Identification Number) for businesses

When an account is limited or has not been verified, you need to provide the above-mentioned information to ensure that you can complete the verification process or lift a limitation. 

 

Why Does PayPal Need my SSN to Remove an Account Limitation?

You may wonder, “Why does PayPal need my SSN to remove an account limitation?” If the number is requested, it will assist PayPal in verifying your identity or complying regulatorily.

You will also need other supporting documents to remove a limitation on your account so you can freely use it online. Before sending any documents, make sure that each piece of paper or identifying document is easy to read, does not contain details that have been blacked out, and supports the data on your PayPal account. 

If your account has not been verified or is limited, I can help you with collecting the information you need. Any questions along these lines can be answered easily. If you do not have an SSN, find out how you can obtain an ITIN with us today.

 

Types of Acceptable Documents

Documents that you should provide can be categorized as follows:

Proofs of Identification

Following are acceptable documents you can send:

  • A government-issued ID, such as a passport, driver’s license, or state ID
  • Employee card
  • Permanent residence card

Proofs of Address

To show a proof of address, you must provide information that is current, or no older than three months old. These documents may include a cell phone bill, utility statement, or credit card or bank/financial statement. 

Proofs of a Legal Name Change

The use of an SSN can also be used to certify a legal name change. PayPal requests the user send the following paperwork to show this type of change:

  • Marriage certificate
  • Name change certification
  • Certificate of commitment
  • Divorce decree – certificate

Business Documentation

To remove an account limitation from a business account, PayPal requests companies provide the following:

  • Current business license
  • A business form that has been filed and approved within the user’s state
  • Articles of incorporation for corporate entities

 

What Happens When You Have an Account Limitation?

When you do have a limitation on your PayPal account, PayPal will send you an email that states the reason for the limitation and will provide the steps you need to take to remove the limitation. These steps are provided at the site’s Resolution Center.

If you receive an email that states your account is limited but you don’t see the steps listed in the Resolution Center, the email may be fake. Normally, an account is limited because certain regulatory requirements have not been met. 

A limitation may go into effect after an account has been verified if PayPal finds that you have received a high number of chargebacks or claims. This information signifies poor selling performance. Also, if you begin selling an entirely new item, or your account’s sales increase substantially, a limitation may be placed on your account while PayPal performs a review.

 

What To Do Next

You may feel overwhelmed by some of the requests made by PayPal, especially if you are a start-up and have not sold online before. I can help you provide the required information so PayPal meets its regulatory requirements and you can start using your account. You can definitely use your ITIN number to start a business PayPal account. Apply for your ITIN number today

Sam Mollaei, Esq.

As a Business Lawyer for Entrepreneurs, I help entrepreneurs start their U.S. business without dealing with complicated government forms. I’ve assisted more than 2,246 entrepreneurs successfully start their business and I'm backed by more than 702 5-Star Google Reviews. If you're interested in starting your business, take the first step by requesting your Free Strategy Session on this page.

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