Expect a Credit Check from PayPal if You Receive a Large Payment
by
Brett Bumeter
If you transact with PayPal on a regular basis, you may feel that the account operates much the same as any other bank or credit card account. In many ways this is very true. However, it is still an online payment facility and in some ways their security is tighter than other systems.
If you receive a large payment over $2,000 - $5,000, you can likely expect a temporary restriction on your account and a request for a personal or business credit check depending on your account type. If you are a US citizen this will likely require the submission of your social security number or a tax identification number, a common attribute many professional bloggers use anyway.
Common Notification Message from PayPal for Credit Check
We recently reviewed your account, and we need more information about your business to allow us to provide uninterrupted service. We would like to return your account to regular standing as soon as possible. We apologize for the inconvenience.
Why do I need to provide additional information about my account?
We require additional information about your account for the following reason(s):Nov. 17, 2005: PayPal occasionally performs credit checks on selected account holders. Your account has been selected to go through this process. We must complete a credit review in order for the warning on your account to be lifted. In most cases, the account holder’s personal credit is analyzed using a Social Security number and an address likely to generate a match with a credit bureau. Please log into your PayPal account to provide this information. If an examination of your business credit would be more appropriate, please contact our customer service department to supply your Tax ID number.
PayPal like other banks is required to report large transactions to the US Government under SARS and several other systems and laws. To complete these reports, they need your social security number. The purpose of this is to give the United States Government enough information to track activity and insure that a person or group of persons are not engaging in money laundering activities.
This is a common activity that occurs when people buy cars, or large dollar items. Credit checks help the company on the front line assess the likelihood of a potential credit freeze by other companies or banks as well. This technique can be used when you apply for loans, credit, or even if you get a car insurance online quote.
ACT RIGHT AWAY! Do Not Do Nothing
It is very important that you comply with this request as quickly as possible. Otherwise, your restricted account could be locked and you could be prevented from receiving, sending or withdrawing money.
In addition, PayPal may also require you to ’set your credit check address’. You may recall setting a business address and or a home address. This is an additional section or button in the same section of PayPal, a new feature that can be triggered by random or by large transactions.
PayPal Limits Transaction Sizes to No More Than $10,000
