PayPal wants to see photo ID, SSN card, proof of address

[ana15]

I've been buying on eBay and paying with PayPal for many years, but today all my attempted transactions were refused: "We can't process your payment. Please select a different payment method or check your payment details including your billing address."

When I log into PayPal in a separate browser window, it says that federal regulations require PayPal to "collect specific information to verify your identity" and then goes on to say that I have to provide a photo ID, as if I'm giving a credit card to a store clerk in 1980. And it also asks to see my social security card and some proof of my address.

That seems very strange. How would a photo ID matter to PayPal? Can they see me? I have no camera on my computer.

Has anyone else had this experience? Or is it some kind of elaborate high-tech scam?

[DPCreations]

Perhaps there was something unusual about the transaction which prompted a security compliance request.

Have you used a different address for billing and delivery?

Federal regulations require more control than a couple years ago.  PayPal has to comply with money regulations to insure that members are identified sufficiently to meet all federal and other standards.

Why not prove who you are?  Banks also must confirm member identies and SSN's.

[ana15]

I was trying to buy an SD card and a card reader, from various sellers. In one case I was trying to buy the same item that I bought from the same seller two weeks ago.

I've always used the same address for delivery as for billing, as I did in this case.

I'm not averse to providing information to PayPal, but since they never asked for it before, and since I can't understand what good a photo ID would be to someone who can't see me, I thought maybe it was phishing.

None of my credit card companies have ever asked to see a photo ID or social security card, and the only way they've ever confirmed my address is by sending mail to it.

[DPCreations]

Credit card companies are not banks so they are subject to different regulations than banks and bank-like businesses such as PayPal.  You can always call PayPal for quick resolutions.

Attempting to buy SD cards from various sellering I assume you actually tried to make a purchase with a credit card and failed and then trying to buy a credit card reader could be suspecious.  Why not buy the reader from a recognized company rather than a reader not sold by the company?  There are details missing in the activities leading up to the ID trigger so maybe I didn't understand what you did.  In any case, just call PayPal.

[ana15]

When I said "an SD card and a card reader," I meant a flash memory card and a device which reads flash memory cards. I wasn't trying to buy a device which reads credit cards. Sorry for the confusion.

I later bought the things I needed from Amazon, and Amazon's computer pointed out that the credit card they had on file for me had expired. I had to enter the new expiration date in order to complete the purchase.

I think the problem with PayPal must have been the same, since I keep the same credit card on file there. The only difference is that when PayPal's computer saw that my credit card had expired it told me it needed to see a photo ID. I didn't understand that what it really wanted was for me to update my credit card.

I still don't understand why it didn't just say that. Apart from the absurdity of giving a photo ID to a computer that can't see me, and the questionable policy of using an expired credit card rather than asking for the new one, it's much easier to enter a new expiration date and CSC number than it is to scan and upload the three documents that PayPal asked for. Even if I had tried to use the expired credit card in a store, where a photo ID would be of some value, I think the cashier would have asked me for a newer credit card rather than a photo ID.

[DPCreations]

My guess on the date expiration issue is that it is another security issue to help prevent fraud.  Suppos someone had you credit card details except date.  Now if the payment service replies that only the date is wrong, the person knows the problem and can try another date, until getting it right and accessing your funds.  The vague error is a way to prevent a bad person from gaining access.  In thoses cases, calling PayPal or your credit card bank can help.  I've had it happen with a bank card for a perchase when all that was wrong was the date.  I had to use a different card.  I called the bank the next day and found out the problem.

So, It's just another security gate.

[ana15]

Maybe you're right. Maybe they were concerned about the possibility that someone had my credit card number and PayPal password and e-mail address, but not my driver's license or credit card expiration date. The usual way to deal with that would be to allow only three attempts at entering a credit card before refusing to accept any more. And saying that it needed my photo ID is more likely to fool me than to fool a scam artist. The scam artist would be more likely to be aware of PayPal's fraud-aversion tactics.

[DPCreations]

My my own experience, entering a wrong expiration date doesn't get a second attempt, just a decline.  When the transaction is submtted to the credit card company it is either accepted or declined, not returned for a second attempt with a minior correction.

The requested ID from PayPal is likely just an automated response where a personal call to customer service could help.

[ana15]

It sounds like you're suggesting that the request for a photo ID was secret code for "Please call customer service," rather than secret code for "Please update your credit card." Once again, I'm wondering why they couldn't just tell me to call. Would there be a security risk in letting scam artists know that PayPal wants to talk to me?

If PayPal had said nothing when I signed in, and if I couldn't find anything wrong with my account details, then I would have had no choice but to call (or to shop somewhere else, as I in fact did). So the secret code message was actually less likely to make me call than if there had been no message at all.

Twenty years ago, calling would have been my first choice. I would have called as soon as I saw that there was a problem. But these days phone support is usually just a way of wasting a lot of time on hold and/or listening to unhelpful robots. It may be that PayPal phone support is better than that, but the performance of the online operation suggested otherwise.

[DPCreations]

PayPal phone support actually isn't bad as long as you get your code before calling and you can explain your problem carefully.  It might, however, take a second call to reach a knowledgebable English speaking person.  Just respectfully ask for a different person if the first one can't understand your problem.  I've called multliple times with PayPal Here issues and generally can reach a very helpful person.