There is a lot of bad advice and red herrings about Paypal out there on the web, which prompted us to write this page. Please note - we are not the free support desk for PayPal. Seek help through PayPal or the community forum .

As of the date of writing this article, the following PayPal tips were current:

For Buyers without PayPal accounts...

  • Buyers can purchase items with their credit cards without setting up a PayPal account.

For Buyers with PayPal accounts...

  • If a Buyer has setup a PayPal account, they can still purchase with their credit card without the need to log-in. If they have forgotten their password or login - they can still purchase with their credit card.
  • If a Buyer has an email or credit card in the PayPal system - they can still buy goods without logging in. Although PayPal encourges Buyers to log in (for their own protection) there is a "Continue without logging in" link to bypass the login.
  • If a Buyer on a computer has logged into PayPal, a Cookie will be made by the browser and left on the computer. The next time the Buyer tries to purchase something, they will be asked for a PayPal login - however there is "Continue" button. If the Buyer uses the Continue button, they can enter their credit card details directly.
  • The Cookie is specific to the browser and computer. If you use another computer, or another browser, or delete your cookies, PayPal will not know that you have a PayPal account and will ask you for your credit card details.


  • Contary to the above, for subscriptions Buyers need to setup a PayPal account. This is so that they can cancel their subscription.
  • If a Buyer does not have a PayPal account, they will first be asked to enter in their credit card details, email, name and address. On the next screen, they will be asked for a password for a new paypal account.
  • The regional tax (GST) doesn't seem to tally for subscriptions for some unknown reason. Hopefully Paypal will fix this soon.

For Merchants...

  • As a Merchant, you need to verify your email address. If you don't, your Buyers will see a error "The card you entered cannot be used for this payment. Please enter a different credit card or debit card number."
  • As a Merchant, you need to verify your bank account details or you will not get your money out of PayPal. Best to do this before you attract buyers because you can fall into trouble and your funds will be locked up. The PayPal support is appalling.
  • As a Merchant, don't leave a lot of money in PayPal. If there is a problem, PayPal will lock your account and you won't be able to get the money out.

Money Laundering Issues and Australian Accounts - PayPal will Block your account.

PayPal now asks for more validation when you hit a certain limit (something like $1000 in our experience at the time of writing this).

Be warned - if you cannot supply the information that they request - you will not be able to withdraw funds from your PayPal account. People can still deposit money into your account.

For Sole Proprietors this usually mean suppling extra ID like your Passport and a Utility Bill.

This may be a problem with associations that have multiple committee members. PayPal will ask for ID for each Committee member! If you have a committee member who will not provide the ID, your account will be locked.

Note: we have had some cases where PayPal would not accept a WA drivers licence as ID because "they could not electronically verify" it.

This is not entirely PayPal's doing. It was imposed onto PayPal by our Australian Government in an effort to combat money laundering and terrorism financing.

For more information: