Re: PayPal ID Document Verification Process Quote:
Originally Posted by amy3169 That's an exaggeration. If they are an upright business then why not collect all the ID info in the beginning? All financial institutions are required to do these. How can you assume everyone is upright? It is clear that they put money before uprightness. | Online casinos do the same -- you can register and account and deposit to your heart's content, but when you want to withdraw they start asking you for ID, proof of address, etc.
I can think of a few reasons for this
1. They want it to be easier to deposit than to withdraw, and adding additional barriers would make some people leave and never come back. Better for this to happen when they already have your money.
2. They can collect interest on your money for the period of time they freeze it
3. Some people never submit the full documentation and they get to keep the money. Even if this happens 1% of the time, that's a lot of free money to keep.
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