Can You Receive Payments When You Are Unverified on PayPal?

By Cristina Puno

When selling services or products online, a popular method of payment is PayPal -- an online payment service provider allowing people to easily send money over the internet. Setting up an account is easy, however, different account types dictate what you can do and can't do with your PayPal account. This includes how much money you can send, as well as your ability to withdraw funds on your account.

What is an Unverified PayPal Account?

When an account hasn't gone through PayPal's verification process, this is called an Unverified PayPal account. Newly registered accounts start out as unverified accounts until they go through the process set out by PayPal for verification. Although verification is recommended by PayPal, especially to sellers, this is not a requirement. If using PayPal for accepting or sending payments, you can still do so without having your PayPal account verified. However, certain limitations are set for Unverified accounts.

Accepting Payments on Unverified Accounts

To register an account for accepting payments on PayPal, the only requirement is a valid email address. The person sending money, just needs to specify your email address to send the payment at PayPal, and it will be deposited on your account. Although there are no problems with accepting payments on unverified accounts, there is a $500/month limit when withdrawing money from unverified PayPal accounts. Also, if you request PayPal to send you a check for the balance on your account, address verification is required.

Limitations on An Unverified Account

Besides the $500/month withdrawal limit, PayPal also imposes an overall limit when sending payments out from Unverified accounts. Limits are imposed by PayPal as an anti-money laundering measure and to prevent the use of PayPal for fraudulent activities. Your limits can be viewed by clicking on the "View Limits" link when you log in to your PayPal account. Some websites such as eBay, require sellers to have a Verified PayPal account if they wish to sell and accept PayPal payments on the site.

PayPal Verification Process

The verification process for PayPal accounts vary from one country to another. In the US, this can be done by adding your bank account information at PayPal, who in turn confirms its validity. If you do not have a bank account, you can also apply for a PayPal Extras MasterCard® or PayPal Smart Connect to get your PayPal account verified.