PayPal Agrees To Better Disclose Buyers' Rights
PayPal has been fined by New York state $150,000. In Feb 2004 the International Charter issued a warning to EBay, the parent company, regarding a number of key issues.
Attorney General Eliot Spitzer says the fine was levied because PayPal misrepresented its policy on repayment when merchandise doesn't arrive.
PayPal is the nation's largest online payment service, with 40 million customers worldwide. It had specifically stated to customers that it provided the same rights and protections of a credit card transaction. But Spitzer says consumers were often denied those rights.
PayPal creates accounts for buyers and sellers using the Internet, including PayPal's parent, the eBay Internet auction site.
PayPal lets buyers and sellers exchange money through e-mail. Buyers make payments online through credit cards and bank accounts, and PayPal relays the funds to sellers' accounts.
In addition to paying the fine, PayPal also has agreed to clearly describe consumer rights and refund policies.
EBay says PayPal handled transactions totaling $12 billion last year, processing an average of 629,000 payments each day.