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I have an interesting experoience I want to relate.
I run an online busineess and have had MANY THOUSANDS OF DOLLARS transferred to me via PayPal. I have had as many as 3 US bank accounts on my PayPal account and they even once put a foreign Debit card on my account for me. My account has been registered to the same address for nearly the entire time, which is the same address that is on ALL of my bank accounts.
In my case PayPal KNOWS who they are dealing with
My problem started several months back when I had an unauthorized charge on my PayPal Debit card that I have carried for many years. At first PayPal REFUSED to recognize it as an unauthorized payment FOR SEVERAL MONTHS! Even the moist difficult banks honor claims of unauthorized transactions, when a sworn adffidavit is signed. Apparently they hoped I would give up on it. But if a merchant bills my card as an "in person" card swipe they NEED a signature. In my case there was none as I decided to NOT complete the transaction, because they rased the price quoted and the amount they swiped the card for. THAT IS THE REASON FOR THE SIGNATURE!
So after several months FINALLY one person at PayPal told me that I needed to CANCEL the PayPal Debit card in order that they would honor the transaction as unathorized. There is virtually NO protectio0n against fraud on a PayPal debit card. This implies that even if the funds came out of your bank account. PayPal indicated to me tha6t they were "not a bank" and need not comply as a bank does. This was after them trying to repeatedly make the lame arguement that if I passed them the card, I authorized the payment. They were not supposed to run the card for that amount and I refused to sign. PERIOD.
I cancelled the card at the advice of the Paypal Rep. Then the problems started.
FIrst PayPal REFUSED to RE issue a debit card without my SOcial Security Number. Even their own web site required 2 of 3 requirements for the debit card and the SSN was only one of the three.
Let me clarify... The Privacy Act of 1974 GUARANTEES AND PROTECTS ME from providing this information to Paypal. The State of California Consumer division where PayPal operates from, confirmed this by telephone.PayPal IS NOT A BANK! They make this very clear when you contact them and even vaguely imply that they are. If they are not a bank, they have no business with a SSN , espccially considering I fulfilled 2 of the 3 requirements listed years before on their web site .
This also means that they are making arbitrary changes to their Terms of Service which consumers have now been repeatedly protected against by higher courts. Online merchants and service providers can no longer make arbitrary changes to the terms of service, for a pre exsisting service.
I reluctantly provided my SSN for the purposes of Paypal and objecting all the way. They sttod on the fact that their "p;olicy" allows thenm to ask for whatever informaion they see fit, and their implication is that their poliocy supecedes federal law which is intended to protect my SSN.
PayPal CLAIMED to send several cards that I never received. (remember I do business online and fast turn around of money is sometimes key). Several months later I FINALLY received a card. I since all but stopped
I asked PayPal to REMOVE my SSN that it was o0nly provided for validation of the Debit card. They have refused and infact now ask for my SSN ON THE PHONE WHEN CALLING! Of course I changed this option in the account now.
So let me clarify... PAYPAL HAS NO RIGHT TO YOUR SSN . Their policies do not supercede the privacy act. They also can not make arbitrary changes to their Terms of service thereby requiring it for a replacement card.
PayPal RELIES on bank account information to confirm a user in the USA. Given that process , the requirement iof an SSN is extraneous. PayPal, an Ebay company appears to be data harvesting. Not only do they have my bank account informatiuon at assorted banks they now have my SSN , address, phone number and more
I feel it is almost certain that paypal will block my account after this post. I am sure they know eho I am as I logged in with Paypal credentials. If thathappens I will not be able to post further on this topic. If they do not do this I will make an occassional post here.
If PayPal does not block my account, I publicly make my appeal to PayPal to remove my (unlawfully acquired) SSN from all of their recods , as the privacy act also states: http://en.wikipedia.org/wiki/Privacy_Act_of_1974.
I am currently going through the same situation, but slightly different.
My card is set to expire in 8 days, but I had yet to receive my replacement. My husband received his (and his doesn't expire until June).
So, I called PayPal earlier this week and asked if they mailed the replacement, as I didn't get it in the mail. They said they did, in mid-April. I told them I didn't receive it and asked how I could get a new one.
The Customer service rep told me to go online, cancel my old card and request a new one be sent to me....
This morning I got an e-mail saying my application was DENIED. Here are the problems with that:
1. Customer Service told me I could get a replacement by following those instructions
2. The card had already been created and mailed to me, so why is it now denied?
3. My husband still has his and has the new one as well? So why is mine denied and his isn't?
I'm biding my time until Customer Service opens this morning. Figures I get the e-mail on a Saturday when they don't open until 9am.
This is just stupid!
This is an accurate posting. NON-BANK entities other than the several States and the Federal government are prohibited from requirering an applicant's Social Security number by the Privacy Act of 1974.
Yes that is true. I absolutely WILL NOT give out my Social Security Number to ANYONE except my employer, the irs, and my bank!! EVER!!!! If a cop ask for it.......they dont get it........credit card companies DONT GET IT EITHER.......I myself believe there should be a law prohibiting even ASKING for your SSN unless its the IRS, Employer or Bank.
wow thats crazy, if Pay Pal says that they don't need to comply the same way a bank does, then they shouldn't even need our bank info either.
Question for everyone, do they charge to use the debit card? any monthly fees?
do you need an address on file that has another bank associated to get this card?
Is it worth it to get this card?
also why do I even need to send in my ID and show a marriage certificate when I need to change my name because of marriage if they don't need to comply with the same way a bank acts?
In that case it shouldn't matter and I should be able to change it now.
sounds like to me they are just using that whenever they feel like it or a customer questions the way they sloppily conduct business just to keep them waiting.
thats just my view on what I have read.
Not for nothing, but I've been a PayPal member for 8 years myself, and was also po'ed when asked for the "new" verification info, not the least of which was my SS card.
So to make sure this wasn't completely arbitrary, I did my own research. The Truth is our beloved Federal Government is coming at eBay and Paypal 6 ways to Sunday. Blame the Patriot Act, blame Goldman Sachs, but MOST OF ALL . . . these sudden new requirements lay at the feet or George W Bush, Barrack H Obama, the US Congress and THE I.R.S.
It seems, buried in that boastful Health Care Reform Bill were a bevy of STEALTH changes to I.R.S. code. So for you full-time eBay businesses and PayPal accepting merchants, get ready for the new 1099-k form . . .
And THAT is the reason Paypal is collecting your SS# and redoubling efforts to 'verify' you . . . to cover their butts. And PayPal is being just as stealthy about their reasons for collecting for fear that customers will revolt and vacate the premisis in a manner of speaking.
You all are misinformed. PayPal is not a bank. They don't need to comply with banking rules. IF you want to use their service, they can ask for whatever information they want, . You have every right to withhold any information that you don't want PayPal to have. And, PayPal has every right to deny you the use of their service if you won't provide information they require. It is really as simple as that. Get over it. Also, if you already gave them the SSN, too bad, you gave it to them voluntarily - too late - the cats out of the bag, the train left the station, the chicken has flown the coup. Do you really think anyone wants your SSN anyway?, Come on really?