In order to verify your identity, PayPal requires you to provide certain details after you open an account with the platform.
You may be asked to provide your Social Security number on occasion. Today’s article addresses one of PayPal’s most frequently asked questions: “Can I trust PayPal With My SSN? Is it Safe To Share SSN?”
Your SSN is safe with PayPal, and I understand why you might be concerned about providing it to them. When it comes to protecting user information, PayPal has a variety of safeguards in place.
When it comes to protecting your identity, your Social Security Number (SSN) is critical. People can get hesitant about sharing their SSN with anyone as SSN fraud has been doubling every year and people are losing money and identity because of it.
In this article, I’ll discuss when and why PayPal may require you to submit your Social Security Number (SSN), and whether or not it’s safe to submit your SSN to PayPal.
Can I Trust PayPal With My SSN?
The answer is a resounding yes. When it comes to protecting the privacy of its customers’ personal information, PayPal has a solid track record. The fact that Paypal has never been hacked and appears to be secure for the foreseeable future makes me happy.
PayPal protects your personal information in secure databases that are nearly impossible to breach. No one can physically access the servers because they are protected by armed security personnel stationed at their location.
Payment information is also encrypted automatically by PayPal when it is stored or transmitted. PayPal does not have access to your personal information when you send it from your devices.
When you buy or pay for something online using PayPal, your payment information is not shared with anyone else. When you use PayPal, you won’t have to enter your credit card information as often because you won’t have to enter it on any website.
Is it safe to give PayPal my SSN?
PayPal may go the extra mile in verifying a customer’s identity from time to time. If you’re running a PayPal-based business or just want to keep track of your PayPal balance, this is a must-have feature. PayPal may ask for your social security number in those cases.
You can rest assured that this is in accordance with federal regulations, and PayPal will conduct a background check on you.
Consequently, it is safe to provide PayPal with your social security number because there is likely a legitimate legal basis for doing so.
If you’re using a fake version of PayPal, you should always double- and triple-check to make sure you’re dealing with the real thing. If you have any doubts, don’t give out personal information like your social security number.
Why Does PayPal Ask for SSN?
First, I’d like to explain why PayPal requires a Social Security number. For sales or credit data, PayPal needs your Social Security Number (SSN). Due to this, PayPal verifies the identities of buyers without asking for their Social Security numbers. Your Social Security Number (SSN) is not required of you if you’re purchasing something.
If you’re a seller on PayPal and make more than $20,000 in sales in a year or have more than 200 transactions in a year, you must submit your Social Security Number to PayPal. Your EIN can be used in place of your SSN if you prefer.
Since the IRS requires PayPal to send senders who have sold $20,000 or more in services or products an IRS form 1099, sellers who meet the above criteria must provide their SSNs to PayPal. This level of income should be included in your tax return. PayPal requires an SSN for this very reason.
If you’re a PayPal buyer, you don’t have to provide your SSN unless you’re applying for a credit line from PayPal. PayPal will only ask for the last four digits of your Social Security number when you apply for a PayPal credit line. You will, however, be required to.
Do I Have to Give PayPal My SSN (Social Security Number)?
Your bank account, credit card, and contact information are all things that you’ll be asked to provide when you sign up for PayPal. Using this information, PayPal will be able to verify your identity, which helps keep the service safe. This contributes to the PayPal ecosystem’s trustworthiness.
Unless you have a PayPal business account, you won’t be asked for your SSN when using the service. As a result, if you have a personal account, your identity will almost certainly be verified by linking it to a financial institution.
A copy of your government-issued identification was required before you could open a bank account. Since your bank has already authenticated you, PayPal can take advantage of that. Hence, PayPal’s policy of requiring users to link their bank account (s).
In most cases, you won’t be required to provide your Social Security Number (SSN). However, if you’re asked to submit your Social Security Number, even just the last four digits, you’ll have to do it. You cannot avoid this.
However, if you have a business account, you have the option of providing an Employer Identification Number (EIN).