Can I verify with a prepaid debit card?

[ImxStatic]

I do not have a bank account or debit/credit card. I have made many purchases with a prepaid debit card through paypal but I was wondering if I could verify my account if I added one as my debit/credit card. I removed it when it ran out of money but if I was to add it back then would it stop asking me to verify? 

[snowshoe]

Unfortunately what you have in mind won't work:

Financial institutions such as banks, credit card issues and 3rd party transaction processors such as PayPal are required by law to verify the identity of the person behind any and all Accounts into which money is collected.　 This stems from the USA Patriot Act, Title III, Anti-money laundering to prevent terrorism where as institutions put into place reasonable steps to identify beneficial owners of bank accounts and those who are authorized to use or route funds through payable-through accounts.

　

PayPal takes advantage of the fact that you had to prove to the bank you are who you say you are.　 Therefore, by linking and confirming your bank account, the background work has already been done and PayPal has now met the legal requirements to protect themselves.

　

PayPal's FAQs state: To Verify your PayPal account, just link your bank account to your PayPal account or be approved for PayPal Smart Connect or the PayPal Plus MasterCard®. (Note, the PayPal Plus MasterCard was introduced in 2001. 　In 2011 the name was changed to the PayPal Extras MasterCard.)

[ImxStatic]

Thanks one more question, if I was do link a bank account/ debit card and was to receive a donation would the money go straight into that account or is it just needed for identity purposes?

[snowshoe · Accepted solution]

Regardless of how you plan to receive funds, the money always goes to your PayPal Account Balance - from there, it's up to you as to what you do with it.

The bank account requirement is for verification and allows you access to your funds - if you should decide to start using your PayPal Account "without" verifying it, you will run into issues, such as holds and limits.

[ImxStatic]

Thank you so much you have been a big help! 😄

[snowshoe]

[tbrock]

Hoping that someone (like Snowshoe!) sees this.

My paypal account has been verified since 2000.  However my situation has changed.  I have been a missionary outside the U.S. since 2008.  With limited funds, the balance in my bank account dwindled to the point I had to close it keep from having a negative balance from the banks monthly "service fees".  When I closed out the account, I also lost the debit card/Visa that was attached to it. I do have a bank account outside the U.S., am fairly certain that is not linkable for paypal.

So my question (which paypal customer support has yet to answer in close to two weeks) is, can I continue to use my paypal account without it being linked to an outside bank account or outside credit card?  Assuming that I can, will my account lose its "Verfied" status?

[WkdHtBstnGrl]

You probably will stay verified as long as you don't broadcast the fact that your verified bank account is closed! If your PayPal account doesn't have enough funds to cover certain fee's where as your verified bank account would be a back up funding source. PayPal will aways draw from your PayPal account as the primary funding source. Some people are verified through bank account's that haven't existed for years. Once your PayPal account has been verified it will continue to stay verified unless PayPal needs to make communication with your verified bank account initiated by a third party in certain circumstances due to insufficient funds in your PayPal account.