Yeah, before I closed my Paypal account a few years ago, I remember this being the case as well. So I'm not sure how the other commenters are getting away with:

Yeah, before I closed my Paypal account a few years ago, I remember this being the case as well. So I'm not sure how the other commenters are getting away with: 1. Not having to open an account to make > $500 purchases via Paypal. 2. Not having to get your account verified.