PayPal verification with virtual card
I have written a post on Devilsworkshop on HDFC NetSafe Card. HDFC Netsafe card is a kind of Virtual Credit Card which can be used for online shopping with out worrying about Credit Card fraud. I am using it with eBay and other merchants for online shopping .
One of the reader asked , about verifying a PayPal account with Virtual Credit Card. I verified my PayPal account through my friend’s real Credit Card. But to answer this question I raised a ticket to PayPal is it legal to verify PayPal with Virtual Credit Card, but till today I didn’t get any reply from them.
Why do we need to verify PayPal?
With unverified account you cannot withdraw money and lots of transaction limits, more about this you can see on PayPal help page.
I found lots of threads online those are saying Verify your PayPal account by Virtual Credit Card, people are generating and selling Virtual Credit Card for PayPal verification, I think that is illegal. But if you generate a Virtual Credit Card through your own bank or Credit Card account than I think there is nothing harmful, as in case of any problem your bank can provide your background information.
One of the reader of rcanblog emailed that he successfully tried it, and after it he linked his bank account to receive payments directly. PayPal just charged a sum of $1.95 to Verify the Card and returned this money to his PayPal account. We don’t recommend to do so.
I will keep updating this post, if I get more information about it.
PayPal replied on this issue
Disclaimer : The above is based on my understandings , Please refer the rcanblog TOS
Hi,
With my experience of Netsafe since 2006- it behaves unpredictably- at least to my eyes. I have so far generated around 120 Netsafe cards and used in domestic as well as overseas trading. Sometimes, it did not work or HDFC could not answer with something usefull other than Blah Blah and Blah. But, to accept- I never lost my money.
So far attaching the card with Paypal is concerned- I always attach my real credit card. Never tried Netsafe. Because,1. None at HDFC could answer me this question. 2. Logically it should not work.
why?
Immidiately after attachment, your bank deducts Rs 1 from your card. Netsafe is a single use card. So it dies with this Rs 1 transaction. Even if not- after verification of the card done with the Paypal account, a sum of USD 1.95 gets deducted that comes back to your (Not Paypal account) direct credit card account. So the Netsafe card is gone now.
However, there may be some other way of using Netsafe card with Paypal. In case anyone has any experience of attaching Netsafe card in paypal account and using it, please let us all know.
Best wishes-
Deba
I had a small a doubt, it specified in HDFC website the NetSafe card in only valid for upto around 36 hours, when I validate my paypal with this NetSafe card I will be charged 1.95$, After successful verification how can I get this 1.95$ back as NetSafe card in valid for only 36 hours, I think paypal will transfer money to the ‘card number’? what happend if the ‘card number’ itself expires? can give me feedback regarding this?
@Praveen,
PayPal Charge credit card and refund that amount in your PayPal account not to card. The amount will reflect in your PayPal and you can use it while using PayPal for transactions. I hope it clarifies.