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