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Is it possible for one to receive cash if they're using unverified PayPal account?
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Yes you receive your cash but your account is limited. You only receive but you cannot transfer or send money or withdraw it. You can let your balance sleeping on Paypal until you get your account verified. 
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You have to verify your Paypal account by adding your bank details or visa card, you can remove the visa card later on, so you can withdraw cash to your bank.
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Yes, it is possible for one to receive cash if they're using unverified PayPal account.

Because it can be difficult to prove that the person receiving the cash is actually receiving money from the person who is listed as the backer.

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Paypal Inc. have different rules for different countries to keep their business in different countries as per required by the law. So in some countries you are required to be verified user in order to use paypal, in some countries you will be allowed only limited service if you're not verified; and in some you cannot be verified at all. It is up to paypal to decide how much it allows in your country, you have to contact their service and get the answer.
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Hi friend. For your account, you cant have received and cashed out your money from PayPal. In order for you to verify an account, you must follow the PayPal rules to verify your account. And even me before when I created account PayPal say you must be verified the account using your Atm card or credit card to prove your self that is you and they will ask your identification id to upload.
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A credit card and i.d. is no longer required. I never had to give one to prove myself.
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To have money be put into your PayPal account, you must verify your account. Otherwise, PayPal may do one of two things:

1. Hold the money until you verify, or

2. Decide to not give it to you at all

I should also point out, that you do NOT need to add a credit card or give if a personal identification card (driver's license, state i.d., etc) as I did not have to do that. Just verify through email and it should work.
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There are some counties that don't allow you to own a PayPal account. This makes it difficult to work on some website that require you to have a verified PayPal account. Even if your account isn't verified and the site sends the payment it is possible to use this. However:

  • You won't be able to transfer the funds to your bank account.
  • The money will be in your account, but you have no way to access this money.
  • I know you can send and receive money on an unverified account because I know many people who do this.
  • You'll need to transfer your funds to a friend's account and hope that they will give you your money.
  • You can easily verify your account if you have a credit card.
  • You can also link a bank account to your account to verify your account.
  • Otherwise, you'll need to find a different way to access your money. There are some places that will pay you in your country's currency if you sell them your PayPal dollars. I know a few people who buy PayPal dollars because they can't link their bank account to their PayPal account. 
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I once had an unverified paypal account that was used to send me money and i got a mail from paypal telling me to verify my account first.
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No, it is not possible to receive cash if you are using an unverified PayPal account. PayPal requires all accounts to be verified before they can receive or send money. If an account is unverified, PayPal will not allow any money to be sent or received through the account.
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