When I first heard the freelance veterans drop the term "PayPal verification," I wanted to know why everybody's making such a fuss over it.
Isn't having a PayPal account enough? Why do I have to verify my account anyway? What does PayPal verification mean?
Verifying your PayPal address is synonymous to confirming your identity as the holder of the account. The verification process includes linking your PayPal account to a valid bank account, credit card or approved debit card (such as your Unionbank EON debit card).
If you've just commenced your freelancing career and your intention is to merely receive payment for your work, an unverified PayPal account should suffice. In the long run though, you will feel compelled to complete the verification process. Here's why:
- Verification lets you transfer your PayPal money to your bank account or cards. Once you've accumulated a handsome stash of funds, you don't want to keep all of them online, do you? You'd want to cash them or transfer the money to your bank account for safekeeping or to your ATM card for better liquidity. The ability to transfer your PayPal funds to your bank (and vice versa) remains the primary reason that many freelancers opt for verification.
- Verification lifts your spending and sending limit. The sending limit is $500 for unverified PayPal account holders based in the Philippines. This means that technically, you can purchase items online or send funds (to another PayPal address or recipient) amounting to $500. Note though that the $500 is not the cap per transaction but your total spending limit. When you need to send over $500, PayPal verification becomes necessary. (For US PayPal accounts, the limit is $2,000. Visit PayPal's official website to check your country's specific spending and sending limit.)
- Verification builds your credibility. Who knows you might one day venture into an online business. Owning a verified PayPal account is a great way to tell your potential buyers that you are a legit seller. PayPal says verification makes the network a safer place to do business. Besides, if you were to place yourself in the shoes of a buyer, you'd also prefer to transact with a verified seller than a stranger. (Fictitious characters don't bother with verification; they want to remain anonymous; they don't want to get caught!)
So, is PayPal verification necessary? In a word, no, but considering the advantages, you're definitely better off with a verified PayPal account.*