jibage

jibage

HomeArchives

Complete Guide to Registering and Verifying a PayPal Account in the U.S., Binding a U.S. Virtual Credit Card for Receiving and Withdrawing Funds!

86
AI Translation
This post is translated from Chinese into English through AI.View Original
AI-generated summary
Recently, PayPal has launched cryptocurrency trading features for U.S. accounts, allowing users to buy and sell Bitcoin, Ethereum, Bitcoin Cash, and Litecoin, with a minimum purchase of $20. Currently, this feature is only available for U.S. accounts; accounts in mainland China and Hong Kong cannot access it. To fully utilize a U.S. PayPal account, users must undergo identity verification using a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN). After verification, users can receive payments, use PayPal Cash, obtain a PayPal Key virtual card, and trade cryptocurrencies. Obtaining an SSN can be challenging for non-U.S. residents, making ITIN a viable alternative, though the application process can be tedious. It is recommended to hire a professional accountant for assistance. Key tips for registering a U.S. PayPal account include: 1. **Stable U.S. Internet Connection**: Use a dedicated U.S. server to avoid account freezes due to suspicious login locations. 2. **U.S. Phone Number**: A reliable U.S. phone number is essential for verification and security. 3. **U.S. Address**: Use a virtual mailbox or a legitimate U.S. address to avoid issues with address verification. 4. **U.S. Credit Card or Bank Account**: Only U.S. cards can be linked due to AVS verification. Virtual cards with U.S. billing addresses can also be used. After using the account for a while, avoid changing key information like the primary email address to prevent account issues. PayPal accounts do not require mandatory identity verification but linking a bank account or credit card serves as basic verification. Users should avoid using PayPal for illegal activities, as this can lead to account suspension. For tax purposes, receiving over 200 payments or $20,000 in a year triggers a 1099 tax form requirement. Users can link virtual cards to their PayPal accounts, but long-term reliability

Recently, the news reported that Paypal would enter the digital currency market, and indeed, upon logging into a US Paypal account, it is now possible to buy and sell cryptocurrencies.

Currently, the digital currency trading feature is only available for US Paypal accounts. Paypal accounts in mainland China and Hong Kong do not have this feature, and the situation for European Paypal accounts is unclear. The available cryptocurrencies for purchase include: Bitcoin, Ethereum, Bitcoin Cash, and Litecoin, with a minimum purchase amount of $20. For those who do not engage in digital currencies, I will share my experience in registering and using a US Paypal account. To unlock all features of a US Paypal account, real-name identity verification is required, which can only be done using an SSN or ITIN. A fully verified Paypal account has the following features:

  • Incoming payments can remain in the Paypal balance, which can be withdrawn or spent.
  • Activate Paypal Cash feature.
  • Obtain a Paypal Key virtual credit card.
  • Buy and sell digital currencies.

An SSN, as an identification number for Americans, is generally not easy to obtain, while an ITIN is suitable for non-US residents without an SSN. There are many tutorials online for obtaining an ITIN, but the process can be quite cumbersome and time-consuming, and there is no guarantee of success. Instead of wasting valuable time on this process, it is better to spend some money to hire a professional accountant for assistance. I recommend a Chinese accountant in the US who provides services such as notarization of Form 1583, US company registration, and ITIN application, and can communicate in Chinese. I have done business with her several times, and the feedback from others has been five stars. Here is a direct link to her Fiverr store.

Regarding my experience with registering and using a US Paypal account, my account has been in normal use for over two years, mainly for receiving advertising commissions and part-time sales payments. It has been a valuable asset for me. For friends engaged in cross-border business, I highly recommend registering a US or Hong Kong Paypal account, as they are particularly useful when maintained properly. Financial accounts are very sensitive, and if not careful during registration and use, they may be subject to risk control or even account suspension. Below are some summarized key points for reference; the registration process is straightforward, so I won't include screenshots.

Key Points for Registering a US Paypal Account:

  • A clean and stable US internet environment. It is a big taboo for financial accounts to frequently change login locations, as this may be mistaken for account theft and lead to freezing. Try to log in from the same location for a long time. You can purchase a Windows server with a US line from a server provider, such as Ucloud in China. I recommend Kamatera VPS (the better the IP resources, the better). They provide US data center lines, which are relatively niche, with fewer users and cleaner IP addresses. New users can try it for free for a month, and after normal use, the price is also reasonable and can be billed hourly. After connecting to the server via remote desktop, open the Paypal website. The official address displayed in the browser's address bar should be https://www.paypal.com/us/ to ensure you are registering a US account. Then just follow the steps to fill in the information; the entire process from registration to later use is done on the Windows server, which is dedicated to maintaining the Paypal account.

  • A clean US phone number. Google Voice is acceptable, but most other virtual numbers are not. A physical SIM card is best to ensure that this number has not been used to register other Paypal accounts. If using a physical US phone card, try to find a reliable one that can be held long-term and is familiar with the phone card's retention policy. For example, using a previously canceled Lycamobile account for registration could be problematic if you need to receive a verification code and cannot receive SMS. Either do not enable two-step verification, or ensure the phone number is reliable. For account security, it is still recommended to enable two-step verification after registration, and you can also add multiple US numbers to Paypal for extra security.

  • A reliable US address. Based on summarized experience, it is not advisable to randomly find a US address on the map to fill in. Instead, use a dedicated US virtual mailbox private address. In one scenario, when shopping on US e-commerce platforms, some merchants have enabled AVS address verification. If the Paypal account is registered with the same address as the forwarding company's address, the Bill Address and Shipping Address will match, which can reduce the chances of order cancellation to some extent. In another scenario, if encountering Paypal risk control, you can try using a scanned copy of the bill from a US digital bank card obtained through this virtual mailbox or a letter sent here for EIN or ITIN application as proof of US address to lift the Paypal risk control.

  • A US credit card or bank account. The US Paypal account has an AVS verification mechanism and can only bind VISA or Mastercard cards with billing addresses located in the US. If you do not have a physical US credit card, you can use a US virtual card, which can be bound to Paypal and used for payments without any issues. This virtual credit card has a billing address in the US and can be modified, allowing you to set it to the forwarding company or virtual mailbox address used during Paypal registration.

After long-term use, do not casually change the main email address, personal name, or other information, as this can lead to issues. For example, I once encountered a situation where my balance was frozen after changing the main email address. I suspect this is because Paypal considers it a new account after changing the main email, and past transaction records become invalid, leading to restrictions on new payments that need to be temporarily frozen before withdrawal.

Receiving and Withdrawing Payments on US Paypal:
A US Paypal account does not require mandatory identity verification for real-name authentication by default. Binding a credit card or bank account is also considered a basic form of identity verification. Accounts that have not undergone complete identity verification will be in a pending state when receiving payments and can only withdraw directly to a bank account; they cannot remain in the Paypal balance or be transferred or spent. My approach is to bind a Velo Checking account from HuaMei Bank, which works fine for receiving Paypal withdrawals through ACH without fees, generally arriving the next day. Previously, a friend bound an American account assigned by a cross-border payment platform, but it seems that it cannot be bound anymore; only a legitimate traditional bank account works better.

Do not use a Paypal account for foreign trade payments involving counterfeit goods, as this will definitely lead to risk control, account suspension, and frozen funds. It is essential to use the account legally and compliantly. When receiving payments from strangers, it is recommended to create a Paypal Invoice to request payment, and the invoice should use English to describe the payment reason in detail, so it can serve as a basis for mediation in case of disputes. For those building independent e-commerce sites to sell virtual goods through Paypal, you can refer to a case where a seller won against a buyer's malicious refund for virtual goods, to avoid pitfalls.

If the number of payments received exceeds 200 or the total amount reaches $20,000 within a year, you will receive a 1099 tax form from the tax bureau, at which point you will need to file taxes.

Using a Virtual Card for Consumption on US Paypal:
If you have a bank card with a US billing address, that is the best option, as you can directly bind the card for consumption.

If you do not have a US card but have a US Checking account that supports Direct Debit, Paypal can also directly deduct from the account.

Due to the separate verification system for American Express cards, US dollar-denominated American Express credit cards issued in China can be bound to a US Paypal account, but they may not always work for payments.

Newly issued US virtual credit cards can also be bound to Paypal for consumption for a period, but since virtual cards can be issued in bulk, they are prone to abuse by some users, so long-term successful payments on Paypal cannot be guaranteed.

Loading...
Ownership of this post data is guaranteed by blockchain and smart contracts to the creator alone.