Managing business account risk.
In order to help manage your risk, we occasionally review and underwrite business accounts. In doing this, we may request for additional business and financial documents from you. This helps us understand your business so that we can build a partnership with you. On rare occasions, we may set aside a pool of money as reserve in your PayPal account to help ensure that you’re able to meet the liabilities incurred from chargebacks, claims or reversals.
1
We may request for your business and financial information.
2
We’ll review the documents and may ask for additional information.
3
We’ll discuss next steps with you directly.
Risk variables.
Our underwriting and risk management guidelines are similar to those of the financial industry. Businesses under these categories will require underwriting.
- Large volume businesses that process a significant monthly sales volume.
- Businesses that are considered more risky by most payment processors, such as travel or ticket sales and membership services.
Understanding your business.
We may require the following business and financial information for underwriting.
| What information we need? | Why? |
|---|---|
| Business license or registration certificate. | This information helps us verify that your business identity is genuine and legitimate so as to ensure a safer eCommerce community. |
| Financial statements, such as your business balance sheet, profit and loss statement, cash flow and bank statement. | This information helps provide some clarity about your business financial status and stability. |
| Business website, a description of your business model, products, refund policy, product fulfillment timelines, number of employees and monthly sales. | By understanding your business and operation model, product offerings and projected monthly sales, we can manage our shared risk better. |