Using PayPal Safely
If for some reason, any reason at all, you are forced to use PayPal directly, and can’t use any of the solutions provided to you by BadPal.org, then let me give you some general tips on how to use PayPal safely.
- Be truthful in your application.
When you apply for a PayPal account, make sure all the information is 100% accurate.
When fighting with PayPal over an issue, it is likely that they will require you to fax them a series of documents that verify your identity. They probably aren’t going to look at it anyways, but you still have to do what they say.
Most of the time, they ask for your passport, ID, driver’s license, bank statements, and even photocopies of your last utility bills!
If for any reason, there is something wrong, you’ve got a problem there, buddy.
- Don’t deal with unverified members.
Unless it’s for low amounts of money, avoid dealing with unverified members. Even though this rule is a given (most scammers are unverified), PayPal may take over your account just because they “feel” that you’ve dealt with someone who “might” be suspicious.
- Avoid dealing with unverified members from questionable countries.
You should also avoid dealing with unverified members from questionable countries. I don’t have a list per se, but I understand that PayPal keeps an eye on countries from Asia and the middle east. This is a shame, really, because I know some very respectable people from there 
But the truth is that is in those regions where most of the scammers operate, so you should keep an eye on who you’re dealing with.
- Avoid large transactions.
While small transactions like a couple of bucks to a few hundred dollars, or maybe even a thousand might slip under PayPal’s high security measures, large transactions tend to alarm PayPal. This frequently results in the funds being frozen until PayPal verifies it’s not fraudulent (and you’ve seen how inefficient PayPal is when it comes to fraud detection). If you must send or receive large amounts of money, consider using XOOM, or dividing the transaction in 2/4/etc.
- Do not apply for a Business account if you do not have a registered business.
This is how it works:
- Personal accounts are for individuals who mainly use PayPal to purchase online, and receive money casually.
- Premier accounts are for individuals who buy AND sell online.
- Business accounts are for those who mainly use PayPal to sell online, and maybe buy as well.
I think it’s pretty clear, but let me tell you something. If you sell online, a Business account might be very attractive. It’s “fancy”: you buy and sell under your own business name, your clients or customers see that you are a business, it improves trust, etc.
But, if you do not have a registered business, with a business bank account, you should not open a Business account. Technically, you can open a business account, but you shouldn’t. This is why:
I used to have a business account, and it was awesome because of all the benefits it had. But then, reading a couple of “horror stories” I realized something: when there’s an issue, PayPal frequently requests documents like driver’s license, and utility bills as mentioned above.
I figured that if you have a business account, they might will ask for your business papers, and related documents. And if you don’t have them, you’ve got a problem. I immediately created a premier account, transferred my money to it, and closed the business account.
So, if you don’t have a registered business, avoid problems and go for a Premier account.
- Don’t open 2 accounts, unless…
You should not open 2 accounts. There is a relatively low chance that PayPal will find out if you do not have any problems, but should problems arise, PayPal might find this out and close your account.
However, you are allowed to have more than one account if:
- You want a Personal account for yourself and a Premier/Business account for your business. Remember each should have different addresses, e-mails, bank account details, and credit/debit cards.
- You moved. If you moved countries, then it’s OK to open a new PayPal account for your new country of residence because PayPal does not allow you to change your country. However, you should delete your old account for security purposes.
- Keep your account balance at a minimum, withdraw as much as possible.
This is pretty much common sense, but it should be mentioned nonetheless. Always keep your PayPal balance at a minimum, and withdraw your money ASAP. I’ve seen people keep up to $16,000 (true story!) on their PayPal account. Now imagine if their account gets seized!
I personally try to keep my balance at around $100 for my purchases, and I withdraw as soon as my balance reaches $200-$300.
This is it for now. This page will definitely be updated, so come back often, or subscribe to the RSS feed, so you can be instantly notified.