If you can verify that way then-well its not very secure is it? I mean it opens up all sorts of avenues for money laundering and so on, by allowing fake accounts.

What about withdrawing money when you have verified just with a prepaid card?

It will be safe to verify your Paypal account using US bank account and with credit card. You can also verify your PP account using VCC.

I'd be interested to hear the final verdict of verifying with a pre-paid card. Seems to me that allowing that defeats the purpose of verification in the first place!

The simple answer is no you are not allowed to :/ You must verify it with a REAL full credit card and also have it conirmed with your bank account or as soon as you reach the paypal limit it won't let you do anything.