PayPal will require you to provide specific information when you sign up for an account on the site to confirm your identity. There are times when you’ll be required to provide your SSN. This article is about one of PayPal’s frequently requested questions, “Is it safe to give PayPal my SSN?”
I understand why you might be hesitant about providing PayPal with your SSN; however, your SSN is secure when you use PayPal. PayPal has several security measures implemented to safeguard the information of its users.
Your SSN is the key to your identity, and it’s vital to guard it with care. I can understand the hesitation PayPal users display when requested to give their SSNs. In this post, I’ll discuss what and when PayPal may ask you to provide the details of your SSN to determine whether it’s safe for you to submit your SSN to PayPal or not.
Should I Give PayPal My Social Security Number (SSN)?
After establishing an account with a PayPal account, You’ll need to include your bank account and debit or credit card information and your contact details. This information is utilized to confirm your identity. This will help keep PayPal safe since other users will be able to verify who you claim to be. This will help build trust within the PayPal system.
PayPal does not usually require an SSN unless you have business accounts. If you’re the user of a personal account, your identity will likely be verified using an account at a bank. You will need to prove evidence of your identity before creating a bank account. This means that PayPal can benefit from having a bank account that has already confirmed your identity. That’s why PayPal asks users to join their banking account(s). Most of the time, you don’t require to provide your SSN.
However, if you’re required to provide your SSN at times, only the last four digits will be required to submit it. It’s impossible to avoid this. If, however, you have a business bank account, you have the option of providing the Employer Identification Number (EIN).
After verifying your account, you can choose to pay using your bank account linked to your account, your credit/debit card linked to your account, and you can use your PayPal balance as the preferred method for payment. One of the main reasons Paypal is so popular is that it protects sellers and buyers. The buyer’s protection has allowed numerous buyers to receive a refund, particularly when they have received defective products or goods that are different from those advertised. Seller protection can also help ensure that sellers are not fraudulent, but the conclusion is that PayPal is a little more favorable to buyers rather than sellers.
Why Does PayPal Ask For SSN?
I believe it’s the first step for me to clarify why PayPal requires SSN. PayPal requests SSN because it requires the information to verify credit or sales information. Buyers aren’t required to supply their SSNs, so PayPal confirms buyers’ identities. Also, you’re not legally bound to provide your SSN as an individual buyer.
If you’re a seller using PayPal and have over $20,000 each year, or you have over 200 selling transactions per year (whichever is first), you must submit your Social Security Number to PayPal. You can submit your EIN instead of that of the SSN. PayPal demands sellers who meet the above criteria to present their SSNs because the IRS requires PayPal to provide sellers who have completed 200 transactions and sold more than $20,000 worth of products or services and an IRS Form 1099. Your earnings must have to be declared at the above amount. This is why PayPal is asking for an SSN.
If you are a customer on PayPal and PayPal credit, you’re not required to supply your SSN when applying to get PayPal credit. When you use a credit line through PayPal credit, you have to submit your SSN if you want PayPal to raise the four digits that make up the last four from your SSN. But, you’ll need to provide your complete SSN when applying for the PayPal debit card.
Is It Safe To Give PayPal My SSN?
You can be confident in PayPal for your account. PayPal has an excellent reputation for safeguarding the personal information of users. I’m also happy to let you know that Paypal hasn’t been compromised and appears to be secure for the time being.
PayPal protects your personal information with secure databases that are non-hackable. The security guards are protected by armed guards who guard the server’s location and ensure that no one can gain physical access to them. Additionally, PayPal automatically encrypts your data when stored or transferred. Your information can’t be accessed as you communicate it via your devices to PayPal. PayPal does not share the details of your transactions when you purchase or pay online for items. These further benefits are making payments through PayPal since you don’t need to input your card information often online.
To let you know how critical PayPal is regarding the most private information (bank account numbers and debit card information), Even PayPal’s employees only have access to the data they need to assist you. For instance, they only access the last four numbers of your account numbers. The details about the locations of the PayPal databases or other information regarding their security system, algorithms, or encryption techniques are kept very private.