In order to become “Paypal Verified” in the United States, Paypal requires users to confirm their identity by providing their bank account number and bank routing information. Paypal will make two small deposits into the account and you have to check the bank statement and enter the two amounts into Paypal. This proves that you have access to the account. Bank account verification doesn’t really confirm your identity though, because Paypal can’t actually see what name is attached to the bank account in most instances. This means you could add anyone’s bank account information and as long as you have access to the account statement by mail or online you could register it as your own.
This guide is picture heavy so click below to read the entire guide:
Because of this, Paypal requires further verification if you want to send or withdraw more than $500 from your account in any month. As you can see, this account is “verified” because the bank account has been confirmed. Nonetheless, it still says that there are limits on the account.
Clicking the “View Limits” button brings us to this page:
It says that all that needs to be done to lift the limit is “verify your bank account or card information.” Well, the account is already verified as evident in the first picture so I should be good to go right? Clicking the “Lift Limits” button under “Action” brings us to this page.
Aha! Paypal says that you should be allowed to withdraw as much as you want, but that is not the case. As it turns out, you need to do more than simply verify you have access to a bank account in order to send or withdraw more than $500 a month from Paypal. In order to lift the Paypal withdrawal limit, you have to give Paypal your Social Security Number or “link and confirm your debit or credit card.” I do not recommend giving Paypal your Social Security Number.
How to Use a Virtual Credit Card to Lift Paypal Withdrawal Limit
If you do not have a credit card with your name or address on it, or do not want to give Paypal access to your real credit card information, you can use a virtual credit card to complete verification. Virtual credit cards are used by many people who don’t want to give out their real credit card information online. In order to lift the Paypal withdrawal limit, you will need a specific kind of virtual credit card. You need a card that has a billing address attached to it as well as one that gives you access to a billing statement so you can see what the Paypal expanded use verification number is. This means you can’t simply go to the store and buy a virtual American Express gift card and register it with Paypal.
I recommend using a Simon Property Group gift card available at Simon. Simon Property Group is an entirely legitimate company that trades on the New York Stock Exchange as part of the S&P 500 and controls over 258 million square feet of leasable area in the United States, so you don’t have to worry about giving your credit card information to a website that isn’t legitimate. They have two virtual credit card options. The first is the “Simon Giftcard.” The Simon Giftcard is a physical credit card that they will mail to your address for an additional shipping fee. The second kind is the “Simon Giftaccount.” When you purchase a Simon Giftaccount you will be emailed a link to create all of the information that the physical credit card would have including the name, credit card number, 3 digit verification number, and expiration date. If you’re in a hurry to verify your account or don’t want to pay for the additional shipping fee this is the way to go. The service fee for the card is $2 if you get the Giftaccount and you can get a card with as little as $20 on it. if you purchase the Giftaccount, you can also have Simon ship you a physical credit card in the future if you decide that’s what you would prefer.
Go to the Simon homepage. On the left, you can choose between the Giftaccount or the Giftcard. I recommend the Giftaccount because it’s faster and cheaper, but if you want to be able to use the card in person you’ll want to have a physical card shipped. On the far right you can “Check your Simon Giftcard Balance.” When you get your card number you’ll come back to this page to check the balance. I’ll be walking us through the process of ordering the Giftaccount. The process is about the same for the Giftcard.
Click “Simon Giftaccount” and then choose “Buy now.” This takes you to the recipient information. You need to enter this information exactly as it appears on your Paypal and eBay account. It is very important that the information on your eBay account matches the information on your Paypal account, otherwise Paypal will flag your account as potentially fraudulent and you will be more likely to get a Paypal limitation in the future. In order to verify your Paypal account properly you need to get a virtual credit card with the exact same name and address you use on Paypal and eBay. Enter the name you use on your Paypal account, select any personal message, and choose the amount you want to add to the account. I’ve chosen the minimum amount of $20.
Click “Continue to Recipient Info.” It will ask you to confirm the personal message. Click to continue. Add the address, city, state, and Zip Code as it appears on your Paypal account. If you can’t remember what this information is, login to your Paypal account, click on “Profile” at the top and then choose “Add or edit street address.” The phone number and email address you use to purchase the Giftaccount do not necessarily have to match your eBay and Paypal account because they won’t be present on the credit card info, but you might as well use them so you don’t get confused and can easily find the credit card number later. Note the shipping method and estimated delivery date. It usually takes about 8 hours to receive the email with the information to register your Simon gift card after you purchase it. Click “Add to cart and proceed to checkout” on the bottom right. I’ve used eBay’s corporate headquarters for my card; I trust that they won’t mind.
A box will pop up asking you to confirm the email address of the recipient. Type in the email and click submit. This next screen is where you type in your real billing information. This can be your own credit card billing information, the billing information of someone else if you do not have any credit cards or it can be billing info that has been previously suspended on Paypal or eBay. EBay and Paypal will never have access to the billing information you submit to Simon. Once you’ve filled out this information, click “Place Order.” If you’ve filled out the form properly the confirmation page will come up. I recommend printing this page as you will need some of the information to get your card number. An email should come to the recipient email address in 8-12 hours. The email will originate from the address you used as the “sender email” on the order form and have the subject, “I bought you a Simon Giftaccount(SM).”
Simon does not email you the credit card number for privacy and safety concerns, so you’ll have to follow the link to activate the account and receive the account number. Simon asks for the phone number or Zip Code of the recipient and for you to enter the code verification. Enter them and click next. This will bring you to the confirmation page with your card number.
Print this page or write down the name, card number, cvv2 number, and expiration date.
Go back to the Simon Giftcard homepage. On the right, enter your card number (without spaces) along with the 3 digit cvv2 code and the code to make sure you aren’t a robot. This will verify you set up the Giftaccount properly. The name and address you used along with the amount added to the card should be listed. Make sure it matches your Paypal address! Now it’s time to remove that Paypal limit.
How to Add Virtual Credit Card to Paypal Account to Remove Withdrawal Limit
Log in to your Paypal account. At the top, click “Profile” then down to “Add or edit credit card.”
The “card type” is a Visa. Add your credit card number, expiration date, and verification code. Scroll down to billing address and choose the address you used as the recipient address on the Simon Giftaccount purchase. Click “add card” at the bottom. Paypal will charge $1 to the account and refund it sometime in the future.
Now, go back to “My Account” in Paypal and click on “View Limits” like we did earlier in the tutorial, then “Lift Limits” on the next page, and finally click on the “Link and confirm your debit or credit card.” This should bring you to this page:
Verify you have selected the Simon Giftaccount you just added to your account and click “Save and Continue.” Paypal will now charge $1.95 to your Simon Giftaccount and include an “Expanded Use” number. Paypal uses the expanded use number to verify you have access to the billing statement. Many virtual credit cards also aren’t capable of displaying the expanded use number, which is why we used a Simon card. Click back to “My Account” at the top and there should be a “To Do List” to the right or left of your account page that asks you to verify the credit card. Click that link. Now go back to the Simon homepage and enter your card number, verification code, and robot catcher code as you did right after you purchased the card. You should see a $1.95 charge from Paypal that looks like this.
The first four digits (I have one number marked out to protect the innocent) are the “Expanded Use” code that you need to type into Paypal. If you do not have this code available yet don’t worry. Occasionally it may take a few hours to show up and possible even a day or two. You’ll still see the charge, but there will not be any expanded use numbers. If that is the case, come back to the Simon homepage in a few hours and check again. Go back to your Paypal account and type in the expanded use numbers and your credit card will be verified and your Paypal withdrawal limit will be removed. Happy Paypaling!
As you can see, Paypal is not nearly as safe as they purport themselves to be. Since Paypal can’t verify the name on a user’s checking account and can’t block the use of virtual credit cards, anyone can sign up to use Paypal with completely fake information. On top of that, they can become fully “Paypal verified” just like the rest of us and withdraw as much money from their account as they want. This is another reason why they’ve instituted the 21-Day Hold. At least you can take advantage of their security holes by linking a credit card that they can’t charge a lot without your permission and will minimize any losses should Paypal get hacked or if someone gains unauthorized access to your account.