I made my account with my preferred name before PayPal changed its legal name requirements. I am currently fighting with them over a refund that they don't want to give me because they mistakenly put it into PayPal balance instead of into my card, which is what I used to pay. It of course won't let me add my bank account because my preferred name doesn't match with my legal name, but when I tried to cha get my name on PayPal they asked me for proof of a name change. When I explained I have never legally changed my name and was simply using the one I identify with, they stopped trying to help me change the name and told me they didn't accept "nicknames or fake names" (which I found as extremely insensitive) and to just delete my account and make a new one. That was it: I told them I was trans and they actively stopped trying to help me (not that they were trying very hard in the first place). So not only is the policy itself transphobic, but the actual people working in support are too (at least in my experience).
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