Using Paypal is fine as long as you understand how to mitigate the problems. For the most part it would be this: Have something else available for CC payments. Don't wait for issues to happen to look for a CC processor. Don't link your Paypal account to a CC or bank account where you keep your funds. When linking to a bank account, make sure it's kept at $0 so PP can't withdraw money. Transfer money from PP to your bank account and then away from that bank account to your real one atleast weekly. More on reddit.com

I used to use a personal PayPal account when I first offered commissions, however my following was pretty small at the time. As my audience grew, I opted to make a business account to protect my identity bc while the majority of the internet interactions I’ve had are great, there’s definitely some sketchy people I’m glad don’t have access to my real name. That being said, the only burden I’ve had with a business account are two things. One is in regards to the new tax law that took place this year in the U.S where if you make over $600 a year, you will be sent tax forms and you will be taxed on it. And PayPal doesn’t take out tax for you, so you have to track it on your own and pay what you owe come tax season. However, this is ONLY applicable to business accounts (which is why I will use my personal account with friends I trust that way it won’t be taxed, however on their end they will be charged an additional transaction fee, which sucks). And two, unless you’re making a “friends and family” transaction (which I believe is only possible via a private account), PayPals fees are ridiculous. And again, their fees are NOT them taking out an included tax. It’s just the fee for using their site, period. For me it’s been anywhere from 3-6 dollars, which doesn’t sound like a lot but it adds up per commission! So that’s super frustrating and honestly I’m trying to find a better route for payment but as of now I’ve just had to deal with it. It really just comes down to what you prioritize, avoiding fees or your identity! More on reddit.com

I do not know if this still works, but try this set of steps.

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Call them and ask, I've never seen this specific reason they want you to verify their identity. Do you have a CC and bank account on your PayPal? Also, to put your mind at ease, its pretty standard for PayPal to ask for identity verification in the form of bank statements, SSN/SIN Number, Photo ID, Passport, etc. A lot of the time its for tax purposes.

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