The difference here is that the customer has already deposited enough funds into Paypal (original post says he's using his Paypal balance, which means actual money that has already been transfered to Paypal). Still, the requirement of Paypal to get my bank/credit card is something to be wary about. If there's not enough balance, than Paypal can simply reject the payment, as it is with all payment processors. Imagine: Your bank wants you to give them access to some other bank's credit card, when you want to use the one they gave you. This is what it is. The verification part, I can see the sense. But there are other ways to verify someone, rather than asking for CC information, which is the sole reason Paypal exists: I don't want to share my credit card information online, and I'd rather deposit some cash into a pool and use it there, controllably.
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