When it comes to establishing online payment accounts, you are usually asked to give away a lot of personal information.
This is usually a very concerning matter since people often ask whether it is safe to just give out personal details.
Although Paypal is known as a secure payment software, concerns are raised when Paypal accounts ask for people’s SSN.
So, why does Paypal need my SSN, and is it really safe to provide it to an online payment account?
Can You Accept Money Without SSN?
If you are new to Paypal, you might be concerned about the personal information this payment software asks you to provide when opening an account.
Many users are worried that they will not be able to use Paypal if they do not give out their SSN.
However, this payment platform gives you the chance to avoid giving this information on many occasions.
Namely, if you do not receive great amounts of money on your Paypal account, you will not be asked to provide your SSN.
You can just use regular personal information, such as name, date of birth, physical address, and taxpayer identification.
For small amounts of money, you will rarely be asked to give your SSN.
This is especially applied if you are using an individual account.
People who use personal accounts, usually use their Paypal profiles for making purchases online, or for receiving small amounts of money.
However, the terms can change if you use a business account, and you receive large sums of money, especially if you are leading an online selling business.
Do I Have To Give Paypal My SSN?
As previously mentioned, if you are using Paypal for making purchases, i.e. if you are using an individual account, you will not be required to provide your SSN.
Paypal will usually ask you to provide bank account information along with your credit or debit card details and contact information.
This is asked from you because Paypal needs to verify your identity, and that way ensures its trust in the ecosystem.
Therefore, if you are trying to open an individual account, you will not be required to provide your SSN.
In other words, Paypal will use your bank account to verify your identity, leading to the fact that no SSN will be needed.
However, you should be aware that you will need to link a bank account to the Paypal account because it will serve as proof of your identity.
Nonetheless, in some cases, Paypal may ask you to provide your SSN, and you will need to give it away.
Otherwise, you will not be able to use this payment software in any way.
Sometimes, Paypal asks for the whole SSN, or on some occasions just the last for digits.
Usually, SSN is required when it is a business account in question.
If you are using a business account, and you are asked to give out your SSN, you might opt for another solution.
Namely, instead of your SSN, you can provide your Employer Identification Number (EIN), and that way ensure that your SSN is secured.
Why Does Paypal Ask For SSN?
If you are using your Paypal account as a buyer, i.e. just for making online purchases, then you will not be asked to provide your SSN.
Buyers are only asked to give their usual personal information needed for making money transactions, and that is it.
The case changes when you are in the position of a seller.
As a seller, you might receive large amounts of money monthly or yearly.
This is where Paypal has special policies and regulations, meaning you might be asked to give out your SSN.
For instance, if you receive around $20,000 a year, or you make around 200 sales yearly, then Paypal will ask for your SSN.
You may wonder what the amount of money changes for Paypal, but the thing is they have an agreement that requires them to do so.
Paypal handles payments in accordance with certain agreements. Therefore, they need to report the larger sums to the IRS, hence the necessity for SSN.
What Can Paypal Do With My SSN?
It is understandable to be concerned about giving out your SSN. It goes without saying that you should know what can Paypal do with your SSN if you provide it after all. However, since Paypal needs it for its agreement and policy purposes, you should not be worried so much.
Namely, Paypal is one of the most secure online payment software, and as a matter of fact, it has never been hacked. Paypal assures you to store your data safely without giving physical access to any servers. Everything that is provided to and stored on Paypal is automatically encrypted giving you the assurance that your information is safely kept.
Paypal does not even require providing card details when making or receiving payments, which is another benefit from this payment software. Therefore, you should not be concerned about giving away your SSN because it will be kept safely enough.
Can You Get Scammed On Paypal Receiving Money?
It is quite possible to get scammed receiving money, even on Paypal.
It is a wide-known fact that Paypal is a significantly safe and secure payment platform, but users can still get scammed.
Namely, online payment scams are present everywhere, so it is not a surprise that they can also be found on Paypal.
For instance, there have been cases in which users have received a notification that they have inherited a certain amount of money.
Usually, these scams are presented in a form of a lottery, some kind of compensation, or some sort of inheritance.
Therefore, you should not be quick to act if you ever receive a notification of that kind.
Takeaway – Should You Give Paypal Your SSN?
It is recommended that you avoid giving out your SSN as much as possible.
In other words, if you do not have a business account, and you do not have a platform for collecting payments, there is no need to give your SSN.
You should remember that once you give away your SSN to Paypal there is no possible way to remove it, meaning you should think twice before providing it.