Account Verification, Regulation E, as it applies to a business

[201First]

 I recently set up a PayPal account for the non-profit for which I work.  We have used Square in the past to take donations, so I thought I would add a similar feature to our account.  However, I was surprised to be asked for my personal information, not the business/non-profit corporation information.I thought it was a mistake. I spoke with a customer service rep, who confirmed that PayPal wants my personal SSN, not the EIN for the business.  I found a legal article which says businesses are not covered by Regulation E, that it is a consumer related regulation.  Is it that businesses are considered consumers within PayPal?

I just don't understand why PayPal wants my personal information for a business account.  Can you help me understand?  Thanks.

[DPCreations · Accepted solution]

Well, PayPal has personal members, not business members.  It's just the way PayPal is structured for business.

If you need more information, just phone PayPal custmer service for more clarification.

If you want a real business account, you could sign up with a credit card processor such as First Data.  They do have business merchang accounts.

[201First]

Thanks, DCPCreations.  I wondered if that meant that PayPal considers everyone "consumers".  It appears so.  As the ED of a non-profit, I want to use our business accounts for donations, not my personal information or accounts.  I guess we will continue to use Square for credit card transactions in person.  It would have been nice to consolidate those financial tools, but if it is not possible to structure PayPal that way, we will use PayPal for online donations only. It is curious to me that Regulation E applies to consumers only, not businesses.  But if we are all consumers to PayPal then requiring personal information makes sense, but limits PayPal's business if others object, as I do.  Thank you for your response.

[DPCreations]

PayPal doesn't consider members as consumers; it considers members as individuals.  Individuals can then establish business accounts with business information, but the individual member is still the responsible party.

I have a Square account, with a business name, but it's still registered to me as a person.  It's been so long I don't know what options I had at the time.  Square does have a lot of great options.  We need the in-person credit card payments and had one requirement where Square lacked:  a compatible receipt printer for an Android system.  PayPal has one.

[sharpiemarker]

You are the owner of the account so PayPal would need your info to verify identity.  It's KYC and AML (Google it).