A long time ago, when all this was fields, PayPal was a great way to send money anonymously. Turns out that that's not true anymore and I just found out the hard way. Brace yourself, even by my standards, this one's a clusterfuck.
I needed to send somebody some money. I won't explain why, suffice to say, I'm an idiot. So, in order to get it done quick, I decide to try and paypal it, but I don't want to leave a paper trail, so I set up a dummy account and pay some money into it. So far so good. I go to pay the money to intended recipients email address and it won't let me. I have a payment limit. In order to lift the limit, they want a credit card number. The site tells me that if I give them that, it'll let me pay somebody.
Here is where I make my first big mistake. Instead of doing the research and figuring out that I could refund the money to my real account, I go ahead and give them the card. Now it tells me that I can pay somebody. Great. So I try again and it still won't let me, now I need to give them a real phone number so that they can call and verify me. Okay, so I give them my hobby phone number. Then they want the address associated with the bill to 'verify it'. Crap, I don't know what address I made up when I registered the phone.
Second mistake, I give them my real mobile number. At this point, I'm not going to go through with paying this way, I just want to send the money back to my real account and send the money some other way, so I give them my mobile number. Then, they 'limit' my account. Not only can I not send money, I can't remove any credit cards or phone numbers from the account. Now, they've really trapped me.
They won't tell me what they want to unlimit my account but they say that they want to confirm my identity. Judging by some of the stuff I've read on the internet, this involves faxing large quantities of personal documents and information. It's a real data-mining operation.
I managed to figure out how to refund the money back to my real account, you're apparently allowed to do that with a limited account, so the account so at least I have my money back. The problem is that I can't remove the credit card or phone number from it. The credit card, I could solve by opening a new credit card account and closing the old one, but the phone number is a problem. Paypal associate phone numbers with accounts, so you can pay somebody via a phone number. I may just have to live with that and work around it.
The moral of the story is that you can't use paypal to send money privately.