Paypal - Do you even want to be "Verified"

[Hobscotch]

Recently, I was notified by Paypal that I had to verify my account because I had neared the $5,000 send limit. According to their writings, the verification process is to prove you are who you say you are. In reality, it appears to be a somewhat different ploy.

 

My account was set up using two credit cards I have had for years, not the least of which was American Express. Both of these cards offer high levels of security. They are all I care to use on the internet, ever.

 

The fun part of Paypal's "verification" process is that there are only two ways to get "verifyied" so you can continue to use their system. The first is to provide them with your personal banking information. The other is to apply for their credit card.

 

Being in the accounting profession for 35 years, and owning my own practice for 25 of those years, I sometimes actually take note of things "financial". So, after researching, and trying to contact Paypal, I found no other way to get "verified", even though my own credit cards have already done that, and my Paypal account has had $4,500 pass through it without one glitch, ever.

 

Paypal is quite straight forward about their demands. If you do not give them your banking information or apply for their credit card, your account with them is locked. In other words, no more using Paypal until you succumb to their demands.

 

Now, all of that being said, I see absolutely no reason for why I would or should ever give Paypal or anyone else my banking information for no legitimate reason. That comes up smelling a lot like marginally legal phishing for financial information without cause. Neither do I care to apply for a credit card I do not want, or need. That is just plain old fashioned over the top aggressive marketing in any other language.

 

So, here I am in the initial stages of letting people know that Paypal is conducting business in such a way that they try to force people into giving up personal information or creating a credit card account they may neither want, nor need with the same intent of gathering personal information on their customers without cause.

 

Paypal is nothing special. It is a service type vendor subject to success by treating its customers fairly. This "verification" process clearly verifies that there are many serious reasons to avoid them or to close any existing accounts people may have with them.

 

Paypal claims it is for security reasons. If Hackers can get into the FBI, CIA and most major banks and governments around the world, Paypal is not even worth mentioning. It should be a piece of cake for the hackers to steal whatever they wish from Paypal.

 

Read the fine print and decide for yourself. But, for me, I am going back to direct involvement with selected vendors, thus ceasing doing business with Paypal and EBay. I do not need these two companies at all.

[SilvrT]

Here's an interesting read on that...

 

http://www.nytimes.com/2010/03/28/your-money/28haggler.html?_r=0

[Guest tx2sturgis]

Paypal claims it is for security reasons. If Hackers can get into the FBI, CIA and most major banks and governments around the world, Paypal is not even worth mentioning. It should be a piece of cake for the hackers to steal whatever they wish from Paypal.

 

Or your bank. Or employer, or for that matter, the three primary credit reporting agencies.

 

I hear your complaints but all of us have data online, whether we like it or not.

 

The amount of personal data that Facebook compiles about users is unbelivable, yet people use that website and it's service like it was harmless.

 

I'll stick with PayPal.

 

 

 

 

[we2riders]

Or your bank. Or employer, or for that matter, the three primary credit reporting agencies.

 

I hear your complaints but all of us have data online, whether we like it or not.

 

The amount of personal data that Facebook compiles about users is unbelivable, yet people use that website and it's service like it was harmless.

 

 

BINGO! but paypal does practice some really screwy things..

 

I will warn all of you of something else concerning Paypal that happened to me, if you are a SELLER on E-slay and there is a discrepency Paypal WILL freeze your entire account, NO MATTER HOW SMALL THE PURCHASE WAS!!! I had accumulated over 30 grand one year in paypal and had my funds locked up for 45 days while they worked through a complaint about a 30 dollar item!!

If you are a seller - dont keep a lot of money in there.. If your a buyer - Paypal is great!!

Other than that, Paypal is no different than any other banking institution, if they can hack your PP account they can hack your account at your little bank on the corner - welcome to the new world

[Hummingbird]

It looks like you are in the midst of a scam. If you can't find paypal phone # - pm me and I'll give it to you

[bongobobny]

Hmmm, way back when I first established my paypal account I became verified thru my bank account as well as a credit card. This allows them to directly deposit any paypal funds owed me into my checking account if I so desire, and it allows me to automatically pay off my paypal account using electronic funds transfer on the day of my chosing. Been using paypal for several years now with no glitches. I remember the verification process involved them giving me a random amount into my checking account for the sum of less than a dollar for free. it ws around 50 cents but hey, free money is free money...

 

If there is any concern you can always open a bank account specifically for paypal, a few of my friends did exactly that!

[KIC]

I just use an old credit union checking account for Paypal. Never very much money in it. If I need to buy something, I put the money in it and then complete the transaction.

[GaryZ]

I just use an old credit union checking account for Paypal. Never very much money in it. If I need to buy something, I put the money in it and then complete the transaction.

 

Excellent idea!

[Flyinfool]

I just use an old credit union checking account for Paypal. Never very much money in it. If I need to buy something, I put the money in it and then complete the transaction.

:sign yeah that:

 

And I keep that special PayPal bank account at a bank other than where I do my normal banking. I have heard horror stories of people that had a separate PP account at their same bank and some how PP was able to pull monies from a non connected account to cover a dispute.

 

If someone manages to hack my PP, they will not likely get enough to pay for a days worth of internet.

[RandyR]

If you have direct deposit or direct debit with any company; electric, gas, water, telephone, etc. They have performed an account verification just like paypal. And there are plenty of stories of utilities over-debiting accounts by mistake.

 

The biggest gotcha with paypal is that paypal may debit your account when there is a dispute with another party, valid dispute or not. And it takes a lot of time and effort to get it resolved. There are instances of scammers buying something, then making a paypal claim and the sellers account being debited.

 

That said, I've used paypal since the beginning, probably 3-400 transactions and never had a problem with my bank account. But I'm mostly a buyer.

 

The original paypal used a credit card for verification, the bank account verification & link came later.

[starrider60]

I GOT THIS AND ALMOST COMPLIED. LATER I GOT AN EMAIL FROM EBAY TELLING ME ABOUT THE SCAM & ASKING THAT I FORWARD ALL SUCH REQUESTS TO spoof@ebay.com I DID AND HAVE NOT GOTTEN ANY SINCE.

[RSTDdog]

I GOT THIS AND ALMOST COMPLIED. LATER I GOT AN EMAIL FROM EBAY TELLING ME ABOUT THE SCAM & ASKING THAT I FORWARD ALL SUCH REQUESTS TO spoof@ebay.com I DID AND HAVE NOT GOTTEN ANY SINCE.

 

I have also gotten several paypal based scam emails. You can usually tell by looking at the email address format compared to legit paypal emails you receive confirming transactions. Spam filter catches most of them now.

 

While I personally have not received a paypal email asking me to get verified, every time I log on to my account, I get the ad to "Get Verified, lift your spending limit" and have to click through it to get to my home page which also has links to Get verified. I got the 10000 spending limit when I first signed up way back in 1998. still have 5000 or so left to go. No intention of giving them my bank account information.

 

The only benefit to linking your bank account that I can see is that it removes the transaction fee for sending money Gifts. Money Gifts are not free if all you have is a CC linked as the payment source and no cash balance in your account. paypal asks if you want to pay the fee or take fee out of what the recipient receives. If you are going to Get Verified, ONLY do it when logged in to your account. NEVER USE A CLINK THROUGH LINK IN AN EMAIL FOR ANYTHING.

 

Unless paypal wants to offer lower transaction fees in exchange for my bank account information' I'll be done with it. I use it very little anymore. There is virtually nothing on ebay that you can't find cheaper elsewhere. Real auctions by individuals on used items are also becoming rare and I don't care to waste hours searching for a deal.

[RandyR]

I agree that I'm using ebay a lot less these days. There are very few real auction bargains to be found there.

[Condor]

Hmmm, way back when I first established my paypal account I became verified thru my bank account as well as a credit card. This allows them to directly deposit any paypal funds owed me into my checking account if I so desire, and it allows me to automatically pay off my paypal account using electronic funds transfer on the day of my chosing. Been using paypal for several years now with no glitches. I remember the verification process involved them giving me a random amount into my checking account for the sum of less than a dollar for free. it ws around 50 cents but hey, free money is free money...

 

If there is any concern you can always open a bank account specifically for paypal, a few of my friends did exactly that!

 

Yep.... Been buying and selling on eBay since '98 and have never had a problem. One thing I do is transfer any received payments to my checking account as soon as I'm notified. I also received one payment of $8,000, and didn't run into any limit restrictions. Now they do consider me a commercial account....maybe that's the reason?? Or... maybe they feel sorry for me 'cause I'm so old...

[Sailor]

Not e bay related but still a scam. People on our little island have recently been hit with a lot of credit card fraud. It appears that someone has one of those scanners that will read your card even while it is in your wallet or purse. They have been selling the info to crooks across the country and even outside the country. It is hard to catch the person with the scanner as all they have to do is walk past you with it in their pocket or briefcase. People are now putting duct tape on their wallets and tin foil in their purses to block the scanner. I have my credit card flagged. If it is used more than 50 miles from home it is refused unless I first notify the credit card company where I am going and when. I used it on our recent trip to Sedona and back with no problems but I had informed the company first.