Paypal is one of the leading online payment processing companies in the world. It allows people to transfer funds through their accounts even when they do not have a checking account or credit card. It also allows businesses to collect payments from buyers.
However, Unverified PayPal accounts are subjected to limitations that Paypal imposes for security reasons.
Discover everything you need to know about the limits on unverified PayPal Accounts below.
The Limits on Unverified Accounts
If your account is unverified, PayPal will limit the amount you can withdraw per transaction. These caps may differ depending on your currency.
Generally, PayPal has a $500/month withdrawal cap. This prevents you from withdrawing any more until you’ve verified your account.
PayPal also caps the amount you can send from an unverified account based on the account type and country.
In essence, you can still send money, but PayPal will limit the amount. To learn more about the restrictions in your specific account, go to the Account Overview Section and click on View Limits.
Why Does PayPal Verify Accounts?
If your PayPal account has limitations, it’s important to verify it. To put it simply, verification is a PayPal requirement for all PayPal accounts.
Verification ensures your business/personal account is legitimate while protecting you from fraudulent activity. This means that you need to provide adequate information about the business and yourself as an owner of the company before you can continue using your account.
PayPal uses an algorithm to detect red flags or what it calls ‘suspicious activity’ to cap account limits as they see fit.
If you like, you can use an unverified PayPal account, but this will limit how much you can send/withdraw–that’s why verification is a must-do.
Final Words on Unverified PayPal Account Limitations
All unverified PayPal accounts are subject to these sending/withdrawal limits. To be verified, you need to provide proof of identity so that PayPal can confirm that you are the only person who has access to your account.
By verifying your account, you will have access to all of the features available on PayPal and be able to transfer money into and out of your account without any problems!
Author Bio:Content crafter Alex Wilmont has been active in the payments industry for over 15 years. His mission is to enhance and innovate the fintech industry through services like Pinwheel Pay. He lives simply, gives generously, and loves his two dogs.