Can't use MoneyPak funds in PayPal account?

[LernTuSpeel]

I've tried several times to pay for items through paypal. I've reloaded my account using a MoneyPak so funds are directly on my PayPal account. Out of the maybe.. Seven items I've tried to buy, only two went through which consisted of one purchase through eBay and an online merchant for Aeria Games. I have more than enough money in my account to pay for other items that I'm attempting to buy except for the fact PayPal constantly slaps me in the face saying they either can't process my payment and to use another payment method (if possible).

Identity shouldn't be an issue; GreenDot/MoneyPak and PayPal both have the same information from me and I was cleared through the process of adding the funds. I'm not linking my bank account because of personal reasons. The money is in and cleared in my account, though, so why am I getting these messages? They're highly annoying; it's not like I'm trying to buy something for like $1000+ or over the amount of money in my account.

[snowshoe]

You need to "verify" your account.  It's your choice to do so or not however, choosing not to won't totally fix your issue.

[LernTuSpeel]

I honestly don't see why I need to verify my account when I just want to use funds I loaded with cash through a MoneyPak. If this was going to be an issue I wouldn't have done it that way and just used a bank account. So PayPal's just going to hold my money hostage until I cough up a bank account? What if I didn't have one, what would they do then? Force me to attempt to sign up for their credit card? I didn't try that way because I already know my application will get rejected and I'll just take a hit on my credit score. This is ridiculous. I can't even use my own money.

[snowshoe · Accepted solution]

As PayPal is a US based corporation, they are bound by some specific rules and regulations regardless of where they offer their services.  It's your choice if you don't want to verifiy your account.

Here's some details so don't just simply blame PayPal as the reason is far past them:

Financial institutions such as banks, credit card issues and 3rd party transaction processors such as PayPal are required by law to verify the identity of the person behind any and all Accounts into which money is collected.  This stems from the USA Patriot Act, Title III, Anti-money laundering to prevent terrorism where as institutions put into place reasonable steps to identify beneficial owners of bank accounts and those who are authorized to use or route funds through payable-through accounts.

 PayPal takes advantage of the fact that you had to prove to the bank you are who you say you are.  Therefore, by linking and confirming your bank account, the background work has already been done and PayPal has now met the legal requirements to protect themselves.

PayPal's FAQs state: To Verify your PayPal account, just link your bank account to your PayPal account or be approved for PayPal Smart Connect or the PayPal Plus MasterCard®. (Note, the PayPal Plus MasterCard was introduced in 2001.  In 2011 the name was changed to the PayPal Extras MasterCard.)

From experience, we’ve learned that in order to use PayPal without limits, it best to link and confirm a bank account (checking account) plus link and confirm a credit card (not the prepaid type) or register your SSN # or do all three.  (Note, when you link and confirm a credit card, this acts as additional proof of ID, a backup funding source and allows you to do instant transfers verses sending eChecks or in the UK eCheques.)

[LernTuSpeel]

Unfortunately, I just realized this was posted in the CA part of the forum. I'm from the US, but I think double posting this topic would prove annoying. Anyway.

I understand that, yes, but my identity was verified by GreenDot which was then, and should have, been transmitted to PayPal. Both have the same information on me. If GreenDot didn't accept me then shouldn't PayPal have done the same? I mean, they DID let me make one purchase on eBay before putting handcuffs on my own money. That part I don't understand. Let me buy through your parent company once but then say no afterwards? Bull.

There's no way I can get my money back, not even through a check because they want a credit card verified address. You mentioned an option to verify through SSN #. I can do that, no problem, but I don't even see that option other than the bank account. I'm not looking for a long term account, that's the thing. I want to spend the money I loaded, which most likely wouldn't even be the exact amount. I might leave a few bucks and then want to close the account. This is proving to be a very problematic headache and though I appreciate your responses, I'm getting nowhere with this. The last thing I want to do is report this to the BBB or anything over such a meager amount, but if this persists, I'll have to do something.

But honestly, what would someone with no bank account or credit card be able to do about this problem? Apply for the card and get rejected? Nothing? Just lose their money? Awesome; I'm all up for a PayPal charity.

Edit: Strangely enough now I'm able to purchase things through eBay once again. I'm not sure what convinced them to suddenly lift whatever weight they had on me, but I'm satisfied until it rears it's ugly head again. Anyway, snowshoe, sorry about my outburst. I was just annoyed, is all. Thanks for taking the time in answering me, though.

[Rope]

Well said. Im sitting here with a hundred dollars on a moneypack i cant use. If i wanted to link my bank account i wouldnt even use paypal i would just use the card. This whole thing is just another useless loop now. I dont trust paypal because ive had problems in the past. Thanks for the info guys.

[Krush]

I am so frustrated! loaded $50 on moneypak to pay a friend for graphics! I have been getting all kinds of error messages and i called MONEYPAK they say everything on there end is fine, they let me no they see its $50 on the card to call PAYPAL i call them and they say the same thing maybe its MONEPAK like really? NEVER had this problem last time i used MONEYPAK was 2013 tho bt it always worked! I am so annoyed guess i have to request a REFUND & wait 7 dam days!!!!!!!!!!!!!!!!!!!!!!!!!! PLUS  i am hearing you have to have a bank account for them to even send refund:/ wow OVER WHELMING as **bleep** im get super depressed behind this dum **bleep** just losing MONEY

[cyimforeu]

i have also tried to access money loaded to a greendot visa $127.00 available will not show that balance on my paypal account i have even called customer service twice the whole reason i got the card in the first place was to use specificaly for ebay