Whenever you open a PayPal account, you need to provide the site with certain personal details. PayPal, itself, is an online financial service that permits users to pay for items using a secured account online. In some cases, you may ask, “Why is PayPal asking for SSN information?”
What General Info Is Needed for Signing Up for PayPal?
To use the PayPal account, you must add certain details, primarily the following:
- Your bank account(s)
- Your debit or credit card details
- Your contact information
When adding the account information, you can set one of the accounts as the default payment method and establish one as a back-up choice. Because PayPal has been in business for a fairly long time, you can find the “pay by PayPal” option on thousands of sites online.
PayPal offers buyer protection, which safeguards you if you dispute a charge and want to request a refund. If you have a PayPal account and are a business, you can accept payments on your website, in-person with a card reader and app, and through online invoicing.
I can give you further details about the advantages of using this mobile online payment system and answer your questions about providing contact information. Email me at email@example.com to learn more about your rights in this respect.
How PayPal Is Set Up
Some people pose the question, “Why is PayPal asking for SSN information?” To answer this question, again, you need to further understand how PayPal generally operates.
The following information can be used to learn more about mobile money transfer service.
Why Is PayPal Asking for SSN Details When It is Not a Bank?
When you find PayPal asking for SSN information, it is because it needs the data for sales or credit information. You do not need to provide your social security number for buying transactions. Legally, you are not obligated to supply the number as a buyer.
If you sell and use PayPal, you must add an SSN or your EIN (federal tax ID number) if you sell over $20,000 per year, or record 200 selling transactions annually, whichever happens first.
The IRS requires that PayPal send sellers who record 200 transactions or sell $20,000 or more in services or products an IRS form 1099. Your income should be reported at this level.
If you are a buyer, it is not standard practice to provide an SSN unless you apply for PayPal credit. When you sign up for a line of credit through PayPal, you need to provide the last four digits of your social security number. You also have to supply your SSN if you apply for a PayPal debit Mastercard, which requires your entire SSN.
Is PayPal Asking for SSN Information on a Secured and Reliable Site?
Site security is enforced if you are worried about PayPal asking for SSN details or similar account information. PayPal has enjoyed a good record with respect to security.
When you sign up for a PayPal account, you must add your credit card account number or banking account details. This information is required so your account can be verified.
When signing up at any site—even secured platforms—make sure your site is free of trojan keyword viruses. Even a secure site can be hacked in these cases. You should also be cautious about the receipt of fake PayPal emails or phishing.
Some of the fake emails state that your PayPal account has been compromised and that PayPal needs to confirm your username and password. You can usually tell if an email is fake, as you will see text errors or the alignment will not look right. Never give out your username and password unless you are signing up or logging into a site.
Is PayPal Asking for SSN Details? When You Should Comply
You should disregard any effort made by PayPal asking for SSN or EIN info if you are a casual buyer on PayPal. Simply do not enter the number. However, it is helpful to add your tax number when you need to collect payments online from PayPal customers or process business transactions.
When using PayPal for invoicing or business transactions, the addition of a tax ID number can be used for tax reporting purposes. This is good information to know, especially if you are starting a business. It also assists PayPal in identifying your identity.
What To Do Next
If you wish to use PayPal to invoice customers or transfer or withdraw money for business reasons, you need to learn more about what information you should provide.
Send me an email today at firstname.lastname@example.org. I can help you set up your business so you can work more effectively off-line and on the web.
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