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Learn Why PayPal May Ask For Your SSN
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In this article, we will discuss the security of PayPal if you can be unconcerned about putting your data on the platform, such as SSN (Social Security Number) and why is paypal asking for my ssn. For, it is something that everyone wonders if your information and money will be in a safe place.
PayPal
PayPal is a platform where online transactions are performed. It can also be your digital wallet, enabling users to store their earnings. Thus, it allows users to make transfers, receive, request, or save money safely and efficiently.
The platform offers solutions for buyers and sellers, allows transactions between users, such as friends and family, and does not need to have any business ties. Although it is known for its online payment methods, it is also used in physical stores, enabling a more comprehensive range of services that PayPal offers. These are some of the services the platform provides:
- Debit or credit card payment;
- Sending charges;
- Make payments;
- Make payments in physical stores using the PayPal Mobile card.
PayPal was born in 1998 in the United States through an idea from another company called Confinity. This American company had its base in Silicon Valley and was known as the creator of PayPal. For manufactured software that was used as a means of payments and encryption Palm Pilot.
PayPal had as its founders Peter Thiel, Max Levchin, Ken Howery, and Luke Nosek. Over time, Elon Musk was also part of this story. Initially, they had the idea of providing solutions for payments. PayPal had as its initial target to improve the models of transactions made with money. So, with the platform, you can make payments online and provide digital transaction work without needing a physical bank.
PayPal Security
PayPal needs you to provide some data when you open an account so that they can verify your identity. You may be asked to submit your SSN (Social Security Number). This article will discuss whether submitting my SSN to PayPal is safe.
You may prefer to provide something other than essential data, such as SSNs, but you can rest assured that your data will be safe with PayPal. The platform has many measures so that your information is well protected.
Your Social Security Number is essential, so you should guard it well. And is acceptable the reluctance that PayPal customers exhibit when such information is requested. We will see here when and why PayPal may require you to send your SSN and whether it is reliable.
After opening your PayPal account, you will need to add your bank account, credit or debit card information, and more data about yourself. This is how the platform will be able to verify your identity, which will help keep your PayPal account secure, so other people will know that you are who you say you are. So this will help create security on PayPal.
PayPal generally does not ask you to submit your SNN unless you are a business account. Then, why is paypal asking for my SSN? As a user with a personal account, your identity will be verified through a bank account. Thus, you are required to provide proof of your identity even before you open your bank account.
That way, PayPal will take advantage of the fact that your bank has already verified your identity. This is why PayPal requires users to link their bank accounts in general. So you won’t need to provide your SSN.
If you still need to forward your SSN, it might only be the last four digits you need to deliver. But if you have a business account, you can send only your Employer Identification Number.
Once your account is verified, you can use your associated bank account and use your credit or debit card that will be linked to it. Or, if you prefer, you can use the available balance on PayPal as your preferred payment method.
One of the reasons PayPal is known is that it offers protection for sellers and buyers. This buyer protection has helped many people get refunds, especially those who received different or damaged goods. Likewise, seller protection helps protect merchants from being ripped off.
PayPal may also ask you to provide your data to comply with Customer Laws. These are regulations designed so that money-related crimes can be prevented. These crimes may be money laundering, terrorist financing, and fraud. As such, the government may have a record of your use of the services, and PayPal helps prevent such crimes from occurring on the platform.
PayPal may ask you to declare your income to the IRS. If you earn more than $600 in a year, the platform requires you to report your payments to the IRS and provides you with a 1099-K form. Since your ID document is required, PayPal may ask you to submit your social security number in advance to ensure that all tax obligations are met.
Can I Trust PayPal?
The answer is definitely yes; you can trust PayPal. The platform has a good reputation when it comes to the data security of its users. Also, we can tell you that PayPal has never been hacked and should remain so.
To tell you how serious PayPal is, your most important data (credit card numbers, bank account numbers, and SSNs) are restricted even to the platform employees. Because they see only the last 4 digits of your data numbers. Also, details of PayPal’s database location, records, algorithms, or data related to the security system are confidential.
Stay Alert!
It would be best if you were on the lookout for phishing scams. Because phishing sites are designed to trick you into thinking they’re like PayPal, for example, only they’re not. It happens as follows, the “fake” site asks you to enter your data.
Instead of sending them to PayPal, the site sends this information to whoever runs this phishing site. So it is good to be careful and not click on suspicious sites, links, and emails because this is how many phishing scams happen.
Final Thoughts
PayPal may need you to send your SSN to validate your identity, declare your income, or comply with the law to know your customer. So it is safe to submit your SSN, EIN, or other essential data as long as you do it on the platform’s official website.
We hope this article has answered your questions and curiosities about PayPal security. So you don’t have to worry.
Paul Martinez is the founder of EcomSidekick.com. He is an expert in the areas of finance, real estate, eCommerce, traffic and conversion.
Join him on EcomSidekick.com to learn how to improve your financial life and excel in these areas. Before starting this media site, Paul built from scratch and managed two multi-million dollar companies. One in the real estate sector and one in the eCommerce sector.