PayPal checks the billing address of the card when you attempt to add it, and if it matches what you put on the account, it will be added successfully... otherwise it will be rejected and you will be informed that this was the reason. So the very act of successfully adding a card to your account establishes that it really belongs to the address used, but this still does not fully satisfy them that you actually own the card, so it can only be used as a funding source for purchases at this point.
But once you add the card, they give you the opportunity to allow them to do a charge to the card with a 4 digit reference code attached to this, which should appear on your statement 2-3 days after the charge was made... once you confirm the code, they become satisfied as to your ownership of the card, and your address becomes confirmed.
Of course the first part doesn't apply to Entropay though since any address used is accepted as valid, which is why it is ideal for stealth.
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