I click on my profile and it showed me that I accept payment from all members. Which makes me wonder, is there any configuration in Paypal where I can configure such that I only accept Paypal from verified members only?
Do you have a business account? I don't think that selling preferences are available with a personal account, and may not even with a premier account.
Well verifying your account normally means that you are just confirming your address to show that you are a real person. So another way you can do this is in your profile click "payment receiveing preferences" and then at the top check the box that states "Block payments from U.S. users who do not provide a Confirmed Address" and just check yes. The thing that I have noticed is that it is almost impossible to confirm your address without verifying your account. Hope this helps.