Why Would Paypal Permanently Disable My New Business Account?

Introduction

I have a PayPal account that I have used for many years. It has always been active, and so far, there have been no issues. However, when trying to open up a new business account with PayPal and use the same email address as my account, they told me they’d disable my account permanently if I provided proof of address within 24 hours! Now, this may sound like a scam, but it’s not – it’s PayPal being … well … strict about identity verification. But why would they want such personal information when opening an online payment facility?

They want ID and proof of address – will they not accept a PO Box number?

You’ll need to provide a photo ID and proof of address. If you’re using a PO Box number to receive mail, PayPal will not accept it as a valid address for verification purposes. Fortunately, most utility bills include both your name and address, so you can use them as proof of your current address in place of an official document such as a driver’s license or passport that contains both information about yourself and the correct location where you live.

I am using a bank account that is in my name.

If you use a business account in your name, then PayPal will not accept it. You must provide a new bank account in your business’s name.

You can check with your bank to see if they offer a business checking account or an alternative solution, such as a corporate debit card that would allow you to use their existing accounts for international payments.

I provide a website with no shopping cart or checkout facility.

You should provide a website with no shopping cart or checkout facility.

• PayPal wants to see a shopping cart on your website.
• The website should be the same as the one that PayPal provides (not an older version).
• The website should have your company name and address on it. PayPal requires this.
• The website should have a contact email different from your email.

The contact email is my email.

• If the email address is personal, PayPal will not accept it. They want a business email address and it to be different from any other account you may have with them.
• The seller’s name must also be different from any other seller’s on your PayPal account. In this case, “PayPal” has already been used, so we need another unique name. Let’s use “PayPal_Test1″ instead so we can keep track of what test is being done in the future with our accounts (we will change this later).

The product being sold is an e-book.

If you are selling e-books, PayPal will not allow this. The best way to sell an e-book is to use eBay. PayPal allows you to sell digital goods on eBay but not through their platform.

The PayPal company name I provided is the same as the sole trader name I use for eBay.

You cannot use the same account name for your PayPal business that you currently use on eBay. This is because PayPal only recognizes a business as a legal entity, not a person.

As such, you need to provide us with a different name for your PayPal account. The name must match that of your registered business entity (company or sole trader), so you must provide one if you haven’t already done so.

Why would PayPal Permanently disable my new business account?

• PayPal is a business-to-business payment service.
• It’s not a bank, credit card company, or money transfer service. It’s a payment processor—a company that helps businesses process payments without having to deal with banks directly.
• If you’re on the receiving end of PayPal’s services as a customer (the person buying something), it works like this: You have an account with PayPal; when you make an online purchase using your debit or credit card with them, they transfer funds from your account into the seller’s account instantly and securely.
• When you accept payments through them as a seller (the person selling something), it works like this: They take care of everything for you—you don’t have to deal with processing any financial transaction yourself. You set up your store page on their website and then link it back to your bank account via ACH transfers each week so that all incoming payments go directly into that account automatically.*

Conclusion

In the end, it came down to a case of PayPal being unable to differentiate between my personal eBay account and my new business account, Verified paypal account for sale. They said I was “using” the same name for both and therefore violated their terms of service. This is even though both accounts have shared details and even been opened at different times!