walt2,
Since PayPal is an online institution, we are unable to verify a person's identity the same way that a bank would when they create a traditional bank account. When you create a bank account, the banker assisting you asks to see identification, they ask for additional information from you, and they verify that information as they are creating your account.
This type of verification and security is one that gives PayPal additional trust in knowing our customers have been able to verify their identity as we allow them to continue to send funds greater than the original sending limit they had prior to verifying the PayPal account.
I understand the reluctance you may have with sharing this information and I understand that we have a longstanding relationship with you leading up to the sending limit. This however, is a security measure we take to minimize the ability for people to misuse your information through our system and have additional confidence that we are actually helping you.
I hope this clarifies this situation for you a bit. I understand that not everyone will feel comfortable with this action but it is a well planned security measure that we have successfully used for a long time.
I appreciate the opportunity to explain this for you.
PayPal_WarrenG
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