When you sell goods or services online, you might want to offer customers a safe and secure way to pay you the money. And many sellers and buyers will often go for PayPal, an online payment system that enables users to send and receive money, shop online, and make payments without sharing their financial information with the recipient.
The popularity of PayPal has spread globally not only due to its ability to secure payments. It also allows integration with a wide range of platforms, including popular ecommerce platforms such as Shopify, Etsy, eBay and many more, and accounting tools like QuickBooks or Synder. Additionally, PayPal can be integrated with various website builders, such as Wix.
At this point, a verified PayPal account can help. However, setting up a PayPal account is more complicated than just signing up with your email address and password. To open a PayPal Verified Business account, sellers have to go through some verification processes.
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Contents:
1. What is PayPal account verification?
2. How to verify your PayPal account and add your debit or credit card
3. Why is PayPal account verification necessary?
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What is PayPal account verification?
In the context of PayPal, verification is the process by which PayPal validates and confirms that a user is an authorized account holder and that their linked bank account or credit card is valid. This ensures that only trustworthy individuals can open and operate accounts with PayPal. It also gives you peace of mind that your information is safe and that transactions can be completed securely whenever necessary.
When you set up a new PayPal account, it starts as an unverified account. With an unverified account, there are certain limitations to what you can do, particularly with regard to the amount of money you can send, receive, or withdraw.
To get your account verified, you are required to link and confirm your bank account or credit card by adding their details to your PayPal account, and then completing a confirmation process. PayPal does this by making two small deposits into your bank account or charging a small amount to your credit card (which is then refunded) and asking you to confirm those amounts on their platform.
Once the process is complete, your PayPal account becomes verified. This verification process increases trust between users on the PayPal platform and helps to prevent scams and fraudulent activities. It’s also a crucial step for anyone looking to use PayPal for their business, as it can increase customer trust.
How to verify your PayPal account and add your debit or credit card
When you first register for a PayPal account, they only ask you to enter the necessary information. However, as you continue to use PayPal services, they’ll ask you for additional data. To become verified, you need to go through the process of adding and authenticating your bank account or, if you choose, adding and authenticating your debit or credit card through your PayPal account settings.
Note: Your bank account name must exactly match your business name on your business registration.
PayPal verification for Personal account: How to link and confirm your bank account
There are three main ways to link your bank account to the PayPal Personal account.
1. On the web:
- Go to Wallet → Link bank
2. On the app:
- Wallet → Banks and cards → Banks
3. On the business app:
- More → Settings → Cards and Banks → Link a Card or Bank Account → Bank account
Bank account confirmation can be completed in one of two ways.
1. “Confirm instantly” option. On the confirm bank page, you need to enter your user ID and password for your online bank account. After that, PayPal will match the information with the bank and once it’s confirmed that you’re the real owner, your bank will be confirmed instantly.
2. Deposit. You can request that PayPal transfer up to 2 amounts into your bank account.
Once you have 4 digits, you should do the following:
- Click Wallet → Choose the bank you want to confirm → Enter the 4-digit code → Confirm
PayPal verification for a Business account: How to link and confirm your bank account
Same as it was for a Personal account, there are three main ways to link the bank account to the PayPal Business account.
1. On the web:
- Go to Banks & Cards → Link a new bank
2. On the app:
- Wallet → Banks and cards → Banks
3. On the business app:
- More → Settings → Cards and Banks → Link a Card or Bank Account → Bank account
The flow with confirmation is similar to the Personal account as well: you have two options.
1. “Confirm instantly” option. You’re required to input your online banking user ID and password. PayPal will verify this information with your bank. Once the confirmation is received, your bank account will be immediately verified.
2. Deposit. This option means requesting PayPal to transfer up to 2 amounts into your bank account. The requirements are the same as they are for creating a PayPal personal account.
When you have 4 digits, all you need to do is:
- Click the Pay & Get Paid → Wallet → Banks and Cards → Choose the bank you want to confirm → Confirm → Enter the 4-digit code
Important notes for both cases:
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Why is PayPal account verification necessary?
As obvious as it may seem, verifying your PayPal account brings the trust of the potential customers, which is the most important factor when selling online. Among other things, the necessity of PayPal verification is important for:
Security
Verification adds an extra layer of security to your PayPal account. By linking and confirming your bank account or credit card, you prove that you are the rightful owner of the account, reducing the risk of fraud and unauthorized use.
Trust
A verified status on your PayPal account signals to other users, especially in a transactional context, that your account is legitimate and more trustworthy. This can be particularly important if you’re using PayPal for business purposes or for receiving payments.
Increased functionality
An unverified PayPal account is subject to certain limitations, such as restrictions on the amount of money you can send, receive, or withdraw. Once your account is verified, these limitations are usually lifted, allowing you to use your PayPal account more freely.
Final words
While PayPal has a lot of advantages and is easy to use for businesses and customers, it’s important to remember that only verified sellers are trustworthy and have customers’ loyalty.
Not only is the verified account beneficial for customers, but for online sellers, it’s critical to protect themselves against credit card fraud. Verification helps protect you and your account from identity theft by confirming that the person using your account is who they say they are.
Though the verification process may seem a bit tedious, protecting both you and your customers while making online payments is necessary.
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It’s good to verify accounts
This article provides valuable information on PayPal account verification, explaining its importance and the steps to verify both Personal and Business accounts. It highlights the benefits of verification in terms of trust and transaction security.
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