Why does PayPal need my address: Explained 2021

Do you want to know why PayPal needs your address or your Social Security Number (SSN)?

Is it safe to give PayPal your SSN?

Do you really need to provide your SSN to PayPal?

If you have these questions in mind, you have landed on the right page. In this post, we have explained in detail all you need to know about providing your address or SSN to PayPal.

So, let’s get started.

Users are concerned about security when it comes to online payment apps and services like Cash AppVenmoZelleChimePayPal, and more. Is providing information and bank details to these services safe? These are the thoughts that run in our minds. And why not? Everyone should take security and privacy seriously.

Today, we will talk about whether it is safe to provide your details to PayPal and why PayPal needs details like address and SSN in the first place?

PayPal requires information of the users such as name, Social Security Number, date of birth, and identity proof documents to ensure the security and identity, to reduce scams and threats to the user’s accounts. Let’s learn more about it in detail below.

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Why does PayPal need my Address

You may think that PayPal is just an online payment service and not a bank, then why it is asking for my address? Every online payment service has to ensure the utmost security to safeguard all of its users. PayPal asking for your address is just a way of adding an extra layer of security to verify your identity.

Paypal requires your address for security reasons, to confirm your identity, to send a letter to the address where you receive your card statements, to verify you are the owner of the card, and to lift off limits on the features of PayPal.

So, it comes down to a few points, PayPal requires your address for:

  1. Security reasons
  2. To confirm your identity
  3. To send a letter or card to your house.
  4. And, to lift off limits on the features of PayPal for you.

Why does PayPal need my SSN

PayPal may need your SSN for certain reasons, such as to verify your identity which adds an extra security layer to the account, for sales and credit information and to report information of sellers to IRS.

As per the Internal Revenue Code ( IRC ),  all US payment processors like PayPal, must provide information to IRS about users who receive payments from selling goods or services through the app and more particularly the sellers who receive $20,000 in gross payment volume or have received more than 200 payments in a calendar year.

Well, if you are a normal user, you don’t need to provide SSN to PayPal.

So, it comes down to the following points, why PayPal need your SSN:

  1. To verify your account.
  2. To add an extra security layer.
  3. To comply with government laws.
  4. To report sales information of sellers to IRS.
  5. To lift off limitation to your account, like to provide you PayPal credit or debit card.

Do you need to give your SSN to PayPal?

No, not necessarily. If you are just a normal buyer on PayPal, you do not need to provide your SSN under any condition. However, if you are a seller, you will have to provide your SSN (Social security number) to PayPal.

Well, if you are applying for PayPal credit or PayPal Mastercard, you will have to provide the last four digits of your Social Security Number (SSN).

Also, PayPal will try to get your SSN every then and now, but if you just use PayPal for buying stuff online, try not to provide your SSN.

However, if you are a seller on PayPal, you will need to sell products and collect payments from other users; it is necessary for you to provide your SSN to PayPal.


Is it safe to give PayPal your SSN

Yes, it is safe to provide your SSN to PayPal if you are concerned about your privacy and security.

PayPal is worth billions of dollars, available in almost every country, and it holds a good record of protecting users data and information.

Well, as stated above, if you are just a normal buyer of PayPal, you don’t need to worry at all, as you don’t need to provide your SSN to PayPal.

But for those, who will have to provide their SSN to PayPal either because they want to get PayPal credit or a PayPal card, or they are a seller, make sure you are using the authentic PayPal website, be aware of phishing website, email or fraudulent tricks scammers use to extract your details.

Even though PayPal might be investing billions in security, it is your sole responsibility to protect your data and information and be aware of the scammers.


Can I use a fake name/address on PayPal

No, you should not use a fake name or address on PayPal, if you do so, you will not be able to verify your account, and you run the risk of your account getting closed as the ID check won’t match.

It depends on how much you’re planning on selling. Paypal has a requirement that once your sales or payments exceed a certain threshold, they will need to ID you (these are anti-money laundering rules imposed in the USA or UK or many other countries). So if you use a fake name, you run the risk of your account getting closed as the ID check won’t match.


Final Words:

PayPal is an American-based financial technology company that supports online money transfers and serves as an electronic alternative to traditional paper methods such as checks and money orders.

You can use PayPal to send or receive payments for online purchases, sell goods and services, donate money, or receive donations.

However, PayPal is not a bank, so why does it need to collect your address and your SSN. As explained above, you will not have to share your SSN if you are only a buyer on PayPal, but if you are a seller on PayPal, you will have to provide your SSN to PayPal.


Further Reading:

Why is Paypal Friends and Family not showing up (2021)

How long does it take to cash a check on Paypal

Why is Paypal not letting me transfer to Bank account

[Fix] Why am I not eligible for Paypal Credit

(12 Reasons) Why is PayPal Declining My Card