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Fri Apr 12 2019 10:40:31

Seller Wonders Why PayPal Demands More User Data

By: Reader

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Dear Ina,
Lately PayPal has been asking for additional information/documentation in order to "provide more security". Until this is provided, I can still withdraw my PayPal balance, but not use my PayPal balance to make purchases, etc.

I just went through this when renewing my driver's license (in order to get a "real ID" form of license). But am curious about why PayPal is requiring this. Their explanation on their web site is vague, and weasely. As they point out, they are not a bank, and allude to "government regulations", but don’t say what, if any they are accommodating. I suspect this is more likely an opportunity to collect and sell user data.

It's no real inconvenience to transfer my money from PayPal to my bank (although I have noticed they have also changed that nomenclature to "collect"). But I do wish they would allow me to make the popup for this request for information permanently disappear.

Perhaps this issue has already come up on the site for discussion, but I don't recall seeing it.
Damariscotta



Comments (8) | Permalink

Readers Comments

Perminate Link for Seller Wonders Why PayPal Demands More User Data   Seller Wonders Why PayPal Demands More User Data

by: mcposty This user has validated their user name.

Fri Apr 12 11:41:54 2019

Its high time any organization that deals with peoples money are held accountable. you can't act like a bank then decide you are not a bank.

Its also high time for strict privacy and data collection laws. Such as making it completely illegal to sell or share any information on a user...no more " by using this site you agree that we own you and can do whatever we please"

People as a whole need to stand up against things like this.




Perminate Link for Seller Wonders Why PayPal Demands More User Data   Seller Wonders Why PayPal Demands More User Data

by: pennyemporium This user has validated their user name.

Fri Apr 12 15:38:02 2019

this has happened to me, as well.  i have a business account over 15 years old.  suddenly, paypal is demanding that i provide LOTS of crazy information, like a copy of a passport, copy of drivers license, copy of social security card, invoices from suppliers, etc which i have NO intention of providing.  

sure, i used to keep a balance in paypal and used it to buy stuff, but now that i am not allowed to buy with the balance, i yank the money to my bank account immediately.  and then use a credit card to pay for stuff through paypal, and they get to pay the credit card usage fees.  idiots.

it is my understanding that a PERSONAL paypal account is not requiring all this crazy verification to spend the balance.  

before you decide to start down the ''sure, i send them a copy of my drivers license, that's all they want''... do a google search.  the amount of information they require will escalate FAR beyond ''just a drivers license''... beware!

Perminate Link for Seller Wonders Why PayPal Demands More User Data   Seller Wonders Why PayPal Demands More User Data

This user has validated their user name. by: Lightning

Fri Apr 12 19:34:02 2019

This is not PayPal's doing, but they are not handling it very well at all.  They are trying to comply with a change in the law regarding the way money is held and transferred, a new regulation issued by the Consumer Financial Protection Bureau in Washington, D.C.

This was discussed in mid-February, as some people received notices from PayPal that were very confusing and maybe a bit worrisome.  I had contacted PayPal to get more info, and put it in a post, copied below:

=================
After speaking with Paypal customer service for quite some time, here is the summary of this policy change:

Your Business Account is unaffected - this regards PERSONAL ACCOUNTS only, as pointed out a couple of time earlier and updated in the OP.

For PERSONAL ACCOUNTS, where you have gone through all the PayPal hoops (verified identity, link a bank account, have your phone and SSN registered, etc.), NOTHING will happen.  No changes needed, life as usual.  At the time you provided this information, PayPal was able to set up a PayPal Cash Account or PayPal Cash Plus Account on your behalf.  That is where your money technically resides when you have a positive balance.  This terminology is company-specific and internal, not displayed as such on your profile.  The email sent out that suggested you NEED to do something was a shotgun approach, a CYA thing to comply with the coming law change, not necessarily applying to everyone.  Some might call it a false alarm - I would.  Or at least not an alarm that should have been sent out in a general sense, but targeted to those it applied to.  Inept move by PayPal.

If you are a casual user of your PayPal PERSONAL ACCOUNT, with little info integrated within, sketchy financial profile, etc., your activities transferring money or holding a balance may be hampered, limited, or blocked.  Without proper credentials, PayPal was unable to set up a full account for you.  THIS is what the email about the policy change was meant to address.  If this sounds like you, and you are using your PayPal account mostly as a pass-through for funds, you might want to call PayPal customer service to see if you are going to experience any disruption in service on March 29.
==========================

The full blog is here:
https://www.ecommercebytes.com/C/blog/blog.pl?/pl/2019/2/1550
455481.html

Perminate Link for Seller Wonders Why PayPal Demands More User Data   Seller Wonders Why PayPal Demands More User Data

by: hopeforthebest This user has validated their user name.

Fri Apr 12 19:58:39 2019

That's what they're telling YOU. It won't be enough.

I've had my Paypal account for twelve years.

My personal account has been soft-limited, although they have my bank routing and checking account number, SSN, several phone numbers, multiple credit cards, and a whole host of other information.

They now want a copy of my driver's license, my passport and a copy of my Social Security Card.

The HECK with that.

Perminate Link for Seller Wonders Why PayPal Demands More User Data   Seller Wonders Why PayPal Demands More User Data

This user has validated their user name. by: MainelyVintage

Mon Apr 15 00:51:59 2019

They called me months back and asked some invasive questions about my past residences. They went back three decades, kid you not. It was kinda creepy.

I figured that they need to prove that the users are not money laundering.  

Perminate Link for Seller Wonders Why PayPal Demands More User Data   Seller Wonders Why PayPal Demands More User Data

by: hawk This user has validated their user name.

Mon Apr 15 07:13:16 2019

if you have to give any of these places all the private information to be able to take your identity , take your money , steal all you own and destroy your life , they should be made to do the exact same thing back to you , if requested. what's fair for one is fair for all.

Perminate Link for Seller Wonders Why PayPal Demands More User Data   Seller Wonders Why PayPal Demands More User Data

This user has validated their user name. by: VV

Mon Apr 15 10:22:32 2019

Land of the FRRREEEEEEE!!!!!!!

Perminate Link for Seller Wonders Why PayPal Demands More User Data   Seller Wonders Why PayPal Demands More User Data

by: Tiffee Jasso This user has validated their user name.

Mon Apr 15 18:11:53 2019

I would be very suspicious of anyone calling me and stating they are a business entity or the IRS for that matter and then wanting to know personal, residential, or any other information about me. I hope you did not give out your Social Security number and bank info.



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