PayPal allows you to choose to block payments (orders) from buyers that don't have a confirmed address. If you have your PayPal transactions settings set to "automatic capture" (the default setting), and you're blocking orders from buyers without a confirmed address, buyers will not be able to complete an order using PayPal.
Some merchants may choose to continue blocking orders from buyers that don't have a confirmed address, as these transactions have a higher risk of fraud (as defined by PayPal) and because shipping to a confirmed address is a precondition of the PayPal Seller Protection Policy. However, other merchants that are less concerned about the risk of fraud for these transactions (considering that buyers can sign up for PayPal during checkout and then not confirm their address), may wish to review and accept these orders on a per transaction basis.
PayPal does allow you to accept orders with unconfirmed shipping addresses. You'll need to review your settings in the Payment Center and at PayPal to ensure they're compatible.
Accept orders with an unconfirmed shipping address
- Sign in to your My Services page.
- Click the Store link.
- Go to Payment Center.
- Click the PayPal Checkout link if not currently expanded.
- Click the Edit button.
- Ensure the PayPal Shipping Address option is set to Buyer-specified Address then click the OK button.
- Return to Store Manager and publish your Order Settings.
Note: You can also adjust the setting to accept orders with an unconfirmed shipping address in your PayPal account. Learn how.
Additional Note: If you don't accept PayPal payments from buyers with unconfirmed addresses, you may wish to add text on your checkout pages informing buyers of this restriction.