PayPal issue – account access is limited

I have verified mine with just a credit card by following the "Add a credit card" option - just gone in and checked it now. The process involves PayPal charging a nominal small fee to the card, then you enter the code that will appear on your statement.

They still would prefer me to add a bank account to the details page (they offer to lift receiving limits if I do this) but my account is verified purely from the credit card validation.

(Caveat - I am in the UK. Rules may be different)

No, not everything with everyone. That would be wrong and insane

Here's from official documentation: (click on link to see everything, I'll just quote up a few paragraphs)

WITH OTHER PAYPAL USERS

When transacting with others, we may provide those parties with information about you necessary to complete the transaction, such as your name, account ID, contact details, shipping and billing address, or other information needed to promote the reliability and security of the transaction. If a transaction is held, fails, or is later invalidated, we may also provide details of the unsuccessful transaction. To facilitate dispute resolution, we may provide a buyer with the seller’s address so that goods can be returned to the seller. The receiving party is not allowed to use this information for unrelated purposes, such as to directly market to you, unless you have agreed to it. Contacting users with unwanted or threatening messages is against our policies and constitutes a violation of our User Agreement.

If someone is sending you money and enters your email address or phone number, we will provide them your registered name so they can verify they are sending the money to the correct account.

WITH THIRD PARTIES

Members of the PayPal corporate family, such as PayPal Credit, Venmo or Braintree, to provide joint content, products, and services (such as registration, transactions and customer support), to help detect and prevent potentially illegal acts and violations of our policies, and to guide decisions about their products, services, and communications. Members of our corporate family will use this information to send you marketing communications only if you have requested their services. Financial institutions that we partner with to jointly create and offer a product (including but not limited to, the PayPal Extras credit card where we share information with Synchrony Bank, for example, in connection with pre-approved offers for the PayPal Extras credit card). These financial institutions may only use this information to market PayPal-related products, unless you have given consent for other uses.