In order to pay via Paypal, buyers are required to sign-up for a Paypal account before they can submit the payment. In fact, the Paypal registration process is not as straight forward as it claims. Most of the time, seller will receive questions/complaints from buyer as following.
What is a Paypal Expended Number Program?
Why am I required to enter my bank details?
Why was I been charged for USD1? Is this a hidden charges from you?
First of all, it is absolutely Free for buyer to signup for Paypal account.
To prevent fraud cases, Paypal will require buyers to verify their account via the Expanded Use Program. To prove the ownership of the credit card/bank account, Paypal will charge/deposit a small amount of money to buyers’ credit card/bank that they’ve registered with Paypal. Buyers will have to check their credit card statement/bank statement to retrieve a secret code from that transaction and enter back to Paypal system for verification purpose.
As an Unverified member of PayPal, buyers’ payments are subject to a Sending Limit. By becoming Verified, buyers will be able to send unlimited funds with their PayPal account.
Paypal will refund money back to buyers’ account after they verifiy with Paypal.
It is always important to use genuine information when signing up new Paypal account. I noticed some users trying to play around with country of where you apply. Pls make sure you can prove it later!
For corporate Paypal account, it is better to create a new email address such as pay@yourdomain.com. API requires this to be entered, do not use your own email, this can be confusing later!
In fact, it is now no longer necessary for buyers to sign up for a PayPal account. If the merchant integrated the “Account Optional” feature for Website Payments Standard, they will be able to credit card payments from buyers who don’t have a PayPal account. Of course, without a PayPal account, these buyers are considered non-verified thus they will be subjected to the sending limit as mentioned in your post
Thanks Glenda. Good to know.