PayPal is a financial institution that enables millions of people around the world who use the service or platform to buy, sell and make basic financial transactions across over 200 countries and regions of the world.
So, the question, how old do you have to be to use PayPal? Is not out of place at all, In fact on the contrary, it is very necessary and we consider it as important and treat it is as such.
Hence this article, though it is pertinent to state that PayPal helps you carry out your basic money transfers and you need not worry about your financial information getting compromised.
PayPal has the ability to simplify your online transactions and is designed to be as easy as possible.
You could use PayPal for a number of functions such as business transactions across companies or make online payments and buy items on e-commerce sites if you’re shopping at a store, splitting expenses or receiving payment for a job.
How Old Do You Have to Be to Use PayPal or have an Account?
According to PayPal terms of service and customers agreement, you must be at least 18 years of age to sign up for an account.
The PayPal User Agreement states, “If you are an individual, you must be a resident of the United States or one of its territories and at least 18 years old, or the age of majority in your state of residence open to a U.S. PayPal Account to use the PayPal Services.”
This decision is arrived by a number of deciding factors large part lies in the fact that you must be 18 years of old to engage in a legally binding contract. And apparently, signing up for a PayPal account is engaging in a legal contract, it follows said rule to avoid the incident of a ton of liability.
How To Open an Account with PayPal
You can open a PayPal account easily, and completely free and use the balance you have for purchases. The app will securely manage and store your debit card, credit card or any banking information you use for the registration.
First, simply sign up on PayPal using your email address, add your correct banking details and then make purchases with funds from your account.
Can You Get in Trouble if You Don’t Meet the Age Requirement?
PayPal outlines clearly in the User Agreement that you must be at least 18 years old or the age of majority in your state of residence. But what if you didn’t know when you signed up?
The simple answer to if you can get in trouble if you open a PayPal account when under the age of 18 is yes.
The User Agreement also outlines a list of restricted activities. It basically states that if you use PayPal and break the binding agreement, they can take different actions against you.
A few of the restrictions include:
- Breaching the User Agreement in any way
- Violating any law, statute, ordinance or regulation
- Selling counterfeit goods
- Act in a defamatory manner that is threatening or harassing
- Provide false, inaccurate or misleading information
- Control an account that’s linked to another account that has engaged in any restricted activities
- And a long list of others
- From here, PayPal reserves the right to take action that could include:
- Terminating the agreement, limiting your account or closing your account (even if there is a linked cash account), at any time
- Refuse to provide PayPal services
- Limit access to their services
- Hold any balance that you have for up to 180 days to protect against the risk of liability
- Contact your bank or credit card issuer or any other impacted parties or law enforcement about your actions
- Take legal action against you
- Okay, that’s a lot of legal jargon to try and process. But the point is that legal action can be taken against you if you take part in any of the outlined restrictions. And that includes having an account if you aren’t the age of majority.
It might not seem like a huge risk, but it could have unintended consequences down the road.
Let’s say you go through the application process for PayPal a few months before you reach the age of 18 in your state. Yet, you are running financial transactions of sending and receiving money and funds on your PayPal to account as well as engage in multiple subscriptions.
But then, PayPal recognizes an issue and places a limitation on your account or they outright ban you for breaching the User Agreement you agreed to when you first signed up. You will lose access to any availability of funds.
Now What? What Do You Do About the Funds You Still Have in Your Account?
Here is what you do, You will have to spend time figuring out everything you had linked to your account. You will have to contact employers or clients and set up a new way of sending or receiving payments. Automatically, may have to start from scratch.
If you created a PayPal account when you were not in the legal contract age, the best thing you can do is close your account and restart. It might be a difficult choice, but it’s better than the alternative of running into substantial issues down the road.
Furthermore, it is best you wait than consider opening a PayPal account while still under the age of 18. There are other alternative payment platforms that you may use when you sign up with your parent’s permission. Either way, it is important you understand the details of a user agreement before signing up.
How to Use PayPal
PayPal can be used in two different ways either with a personal account or with a business account.
On a PayPal’s personal account you can send or receive money from friends and family, as well as easily make purchases or settle up with a friend. Also, you can use your PayPal personal account to receive any money you earned for completing a job or selling a product or service from an international client.
Once you receive your funds, they are secured in the app and you can then opt to make a transfer to a linked bank account or a debit card if you have one in your profile.
For a business paypal account, this account is recommended for anyone who wants to primarily use their PayPal account for business purposes only. Perhaps a company who markets a product or service or receive different types of donations internationally. To sign up for a business account, you will be required to use your company or business name.
You can also tweak your PayPal business account in a way that it allow your employees to access some of the features in it, which can make managing payments more convenient. Keep in mind that using a business account can be subject to certain levy and charges that are different from using a personal account.
If you aren’t sure which one you should opt for, it is best you open a personal account first. This is because on a personal account, you can easily switch it to a business account after a while.
But of course to do that, PayPal has to be aware and approve that you will now be using your account primarily for business or commercial purposes.
PayPal’s Restriction on Transfers or Withdrawals
PayPal have the ability to limit the amount you can withdraw from your account depending on different factors.
Withdrawals can also get delayed in certain but rare cases commonly if PayPal feels the need to confirm you have the right authorization. Some of the events this may happen is with Chargebacks, bank reversals or disputes from buyers.
If PayPal puts a limitation on your account, this may be due to a payment being on hold or your account having a negative balance. If this happens, you will have to restart the withdrawal process after the limitation gets lifted or your negative balance is paid off.
Those steps to lift the limitation on your account may include verifying your bank account, providing a social security number, or confirming a debit or credit card.