Is It Safe To Give PayPal My SSN?
PayPal requires you to provide certain information after opening an account to verify your identity. This may include submitting your Social Security Number (SSN). One common question among PayPal users is whether it’s safe to give PayPal their SSN.
You may be concerned about providing your Social Security Number to PayPal, but rest assured that PayPal has taken multiple steps to ensure the safety of your personal data. They have implemented various security protocols to protect users’ information and keep it secure.
Your SSN is a critical piece of your personal identity and it’s important to protect it. I understand the hesitation of giving out this information to PayPal. In this article, I’ll discuss the circumstances in which PayPal may ask for your SSN and whether it’s a safe action to take.
Do I Have to Give PayPal my Social Security Number (SSN)?
When you open a PayPal account, you’ll need to provide your bank account, credit or debit card information, and contact details. This information is used to verify your identity and maintain the safety and security of the PayPal platform.
For personal accounts, identity verification is typically done through a linked bank account. This is because banks already verify your identity when you open an account with them. As a result, PayPal may require users to link their bank account(s) to verify their identity. In most cases, you won’t need to submit your Social Security Number (SSN).
However, if PayPal does require your SSN, you’ll have to provide it, including the last four digits. If you have a business account, you may have the option of submitting an Employer Identification Number (EIN) instead.
After your account is verified, you can choose to use your linked bank account, credit/debit card, or PayPal balance as your preferred payment method. PayPal is a popular platform for both buyers and sellers because of its protection policies. The buyer’s protection policy has helped many buyers get refunds for damaged or incorrect products. The seller’s protection policy helps protect sellers from scams, although some believe that PayPal tends to favor buyers over sellers.
Why Does PayPal Ask for SSN?
It’s important to understand why PayPal may ask for your SSN. The reason for this request is for sales or credit information. Buyers are not required to provide their SSN, which is why PayPal verifies their identity through other means. You are not legally obligated to supply your SSN as a buyer on PayPal.
However, if you are a seller on PayPal and make sales over $20,000 per year or have 200 selling transactions annually (whichever happens first), you will be required to submit your SSN to PayPal. You have the option of providing your Employer Identification Number (EIN) instead. This requirement comes from the IRS, which requires PayPal to send them an IRS Form 1099 for sellers who meet these criteria. This is why PayPal requires the SSN from these sellers.
As a buyer on PayPal, you are not required to submit your SSN unless you are applying for PayPal Credit. If you are applying for a line of credit through PayPal Credit, you will only be required to provide the last four digits of your SSN. However, if you are applying for a PayPal Debit MasterCard, you will need to submit your full SSN.
Can I trust PayPal with my SSN?
PayPal is a trustworthy platform when it comes to keeping your data secure. The company has a solid reputation for keeping user information safe, and there has never been a reported instance of PayPal being hacked.
PayPal stores your information in secure databases that are well-protected against hacking attempts. The servers are located in secure locations with physical security measures in place, and all information transmitted to or stored by PayPal is automatically encrypted to prevent interception. Additionally, PayPal never shares your payment details when you make purchases or payments online, providing an added layer of security for your sensitive information.
It’s worth noting that even PayPal employees only have access to the information necessary to assist you. For example, they can only see the last four digits of your financial account numbers. The details of the security systems, algorithms, and encryption systems used by PayPal are kept confidential, further enhancing the safety of your data.