What Is Stripe/PayPal Trust? 5 Shocking Misunderstandings About Trust You Must Know. For years, the PayPal community has been discussing accounts with high levels of “Trust” and viewing Trust as the “golden key” to avoiding account limitations or bans. While the importance of Trust is widely recognized, many businesses misinterpret its mechanism and nature, leading to poor decisions in managing their PayPal accounts.
Let’s delve into the details with Hacecommerce to:
- Debunk five common misconceptions businesses have about Trust;
- Identify better strategies to minimize the risk of limitations in the PayPal account.
1. Five Misconceptions About PayPal/Stripe Trust
1.1. Trust Is a Concept Defined by PayPal and Stripe
This is not entirely true. “Trust” is a term that has long been passed around within the PayPal user community. In its early days, it was slang for an account that had been verified by PayPal in terms of the account holder’s and business’s information (for PayPal Business accounts).
According to PayPal, this verification process boosts customer confidence and is the foundation for evaluating account credibility. However, “Trust“ is not explicitly defined in agreements like PayPal’s User Agreement or Stripe’s policies.
1.2. Transactions Between PayPal Accounts Are Fee-Free
The truth is that only certain types of transactions are fee-free. As outlined in PayPal’s User Agreement, no-fee transactions are typically limited to specific cases, such as domestic transactions between personal PayPal accounts or accounts in specific markets like the U.S.
For all other cases, account holders—whether verified or not—should be aware of transaction fees and currency conversion fees, particularly for cross-border payments. Usually, the recipient bears these fees, which vary depending on the currency and country involved.
1.3. Once Verified, an Account Is Permanently Trusted
This is a misconception. In reality, PayPal has numerous steps to verify and assess merchants:
- Basic steps: verifying account ownership, company registration, bank account details, etc.
- Advanced steps: evaluating the business model, assessing the company’s financial health, or reviewing the credibility of business partners.
These evaluations may occur throughout the lifecycle of a PayPal account, especially during incidents. Any account ownership or company details changes must be promptly and accurately updated. Operational factors like shipping times, product quality, and customer service can directly affect an account’s Trust level. Learn more about PayPal account verification here.
1.4. Trusted PayPal Accounts Can Be Bought or Sold
While PayPal and Stripe accounts can technically have ownership information updated, doing so carries significant risks. First, changing account details must follow PayPal’s protocols. Otherwise, new logins by the buyer might trigger PayPal’s fraud detection system.
More critically, if the account faces issues, PayPal often requests documents like bank statements to lift limitations. Without proof of original ownership, there’s a high chance the account could be permanently disabled. No third-party service can assist in such cases.
1.5. Trusted Accounts Will Always Operate Smoothly
This is not true, as even Trusted accounts can face limitations or suspensions if operational quality declines, such as:
- Excessive refund requests;
- Long shipping times;
- Selling counterfeit or substandard goods;
- Violating PayPal policies.
Many businesses experienced these issues during the COVID-19 pandemic due to supply chain disruptions and extended shipping delays, which increased refund requests.
While there is plenty of advice about maintaining a Trusted PayPal account, not all is accurate or up-to-date. When a PayPal account is frozen, store operations can be severely disrupted—or even halted entirely—costing merchants time, money, and effort. These issues can often be resolved more efficiently with the help of expert advisors.
2. How to Build Customer Trust While Using PayPal and Stripe
A Trusted account is one that PayPal has verified regarding the account holder’s and business’s information. However, this does not guarantee immunity from limitations or suspensions. Customer trust, alongside PayPal’s internal assessments, remains the most critical factor in evaluating your account’s activity and payment gateway usage.
According to research by IPSOS, merchants with substantial transaction and payment processes increase customer trust by 44%. Additionally, 47% of customers are more likely to return to the merchant’s website for future purchases.
Here are four ways to enhance customer trust and create a seamless payment experience that instills confidence in your brand:
2.1. Be Transparent
To ease customer concerns, businesses must adopt fully transparent policies. This includes:
- High-quality images, detailed descriptions, and videos of products;
- Clear privacy and return policies;
- Notifications about stock availability;
- Displaying reputable certifications.
Moreover, 76% of consumers (according to Bright Local) trust online reviews as much as personal recommendations. Therefore, providing honest reviews about your products can help customers make informed decisions.
2.2. Offer Popular Payment Methods Like PayPal and Stripe
On average, 1 in 4 online shoppers abandon their cart due to the lack of a preferred payment method (IPSOS). Offering reliable and familiar payment options such as PayPal or Stripe can significantly reduce hesitation and encourage customers to complete transactions.
2.3. Protect Customer Data
Customers are increasingly cautious about data privacy. Among their concerns, 35% of consumers (according to Alderman) worry about the growing number of brands holding their personal information.
Data breaches not only carry financial risks but also erode customer trust. When hackers attack, consumers often hold brands—not the hackers—accountable.
To safeguard customer data, businesses should:
- Use PCI-DSS-compliant payment gateways like PayPal and Stripe;
- Implement secure data transmission protocols (e.g., HTTPS);
- Comply with global regulations, such as Europe’s Payment Services Directive (PSD2).
2.4. Avoid Unstable Transactions
PayPal uses specific criteria to evaluate merchant reliability. These factors could lead to account freezes and disrupt business operations:
- A high volume of refund requests;
- Delayed transaction processing times;
- Unusual complaints;
- Suspicious transactions involving unauthorized goods, counterfeit products, or potential trademark violations.
By addressing these issues proactively, businesses can reduce the likelihood of account limitations and maintain smooth operations.
3. How Does Hacecommerce Support Businesses in Expanding International Operations with PayPal and Stripe?
A wealth of information is available about maintaining a PayPal Trust account to avoid limitations. However, not all of it is accurate or up-to-date. When a PayPal account is frozen, store operations can be significantly disrupted or even halted, costing merchants valuable time, effort, and money. These issues can often be resolved effectively if merchants identify them early and receive expert support from a professional consulting team.
Understanding this need, Hacecommerce offers the following services:
- Transaction and Payment Strategy Consultation: Providing advice on transactions, international payment processing with partners and customers, and optimizing business cash flow.
- VIP Account Registration and Management: Assisting with the registration, management, and maintenance of VIP accounts on international payment gateways, offering faster processing times and preferential fees. This includes consulting on compliance with User Agreements and resolving disputes or complaints.
- Payment Account Leasing Services: Offering payment account leasing solutions for businesses of all sizes.
- Guidance on New PayPal Business Account Registration: Following standardized procedures, especially for merchants who have experienced issues with old accounts or aim to handle high transaction volumes.
- Volume Growth Strategy Consultation: Advising on scaling transaction volumes, resolving account limitations, and completing underwriting processes to upgrade to PayPal Business VIP accounts. Additional support includes registration for PayPal Pro and services exclusive to VIP Business accounts.
Hacecommerce provides a comprehensive package of services, including:
- Company Formation Abroad: Registering companies in foreign jurisdictions.
- Bank Account Setup: Assisting with opening individual or business bank accounts.
- Tax and Accounting Support: Offering consultation on tax and business accounting, including support with international accounting software like QuickBooks.
- Digital Solutions: Helping with electronic signature setup and international domain name registration.
- Customer Care Tools: To enhance customer support, provide international phone transfer services in countries such as Singapore, the U.S., and the EU.
Additionally, Hacecommerce offers a wide range of flexible services tailored to meet the unique needs of your business.
4. Conclusion
Understanding and maintaining PayPal/Stripe Trust is essential for any merchant aiming to ensure seamless payment operations. However, Trust is not a static concept; it requires continuous effort in building customer confidence and adhering to platform policies.
Businesses can create a trustworthy and reliable payment ecosystem by adopting transparent practices, offering reliable payment options, securing customer data, and avoiding unstable transactions.
Need expert advice on managing your PayPal account or navigating limitations? Reach out to Hacecommerce today!
