by Lime Red Tetrahedron

Created on: December 08, 2009   Last Updated: February 16, 2010

Paypal is an on-line banking service owned and operated by eBay Inc, which allows customers to deposit, withdraw, earn, spend, and transfer money in digital form. However, what many people do not know is that Paypal requires no banking information in order to access its many features. In this article, you will find out how to create a Paypal account credit-card free, along with the advantages and disadvantages of doing so.

Introduction: What's in it for me?

There are many legitimate reasons to refuse to provide a company banking and/or credit card information. Paypal is no exception, with a growing number of discontented users, and perhaps more than its fair share of controversy[1]. Luckily for us and surprising to many, Paypal allows users to create accounts that are not linked to any financial accounts or institutions - including credit cards. By following the advice in this article, you will be better able to protect your financial security.

The Process: Creating the Account

First of all, creating such an account is extremely easy. Simply click "Sign Up" on the Paypal homepage, and follow the instructions provided. Eventually, you will come to a screen which will ask you to choose a credit card to which you will link your Paypal account. Simply choose to do so later, and you will be presented with your "unverified account". That's all there is to it! If you would like to lean the implications of such an arrangement, continue reading.

Understanding the Implications: Why use a credit card anyway?

Paypal, with its maze-like organization of documentation, makes it difficult to understand just exactly what they're doing with your money - an important consideration that could lead one to pursue the option above. The following portion of the article summarizes certain key differences between a credit-card-less Paypal account (the "unverified account"), and the regular, run-of-the-mill "verified account".

First of all, key differences between the account types are addressed at the following location: http://www.paypal.com/cgi-bin/webscr?cmd=p/gen/verif ication-faq-outside[2]

The following is an excerpt from the above referenced FAQ on verification, describing what verification entails:

"Verification increases the security of the PayPal network. Verified members have successfully completed PayPal's Verification system to establish their identity with us. The Verification process varies by country or region. For example, in the U.S., a Verified member has added and

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