Maybe they dropped the threshold - I set up my Paypal account and went through this about 2005, and a lot has happened since then.
I know there was a phase where I was genuinely concerned about having a Paypal account at all - probably about 3 or so years ago - when there were lots of problems with fraudulant use of Paypal accounts/unverified credit card accounts. I know Paypal really was forced to tighten up on how they did things as a result.
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