For all you who have had problems with PayPal...

[Dragonlady8]

It's a start.....

PayPal fined $150,000
Repayment policy investigated

Monday, March 8, 2004 Posted: 9:34 PM EST (0234 GMT)

ALBANY, New York (AP) -- The nation's largest online payment service, PayPal, is paying New York $150,000 in penalties after misrepresenting to consumers its policy on repayment when merchandise doesn't arrive, the state attorney general said Monday.

PayPal, which claims 40 million customers worldwide, had specifically stated that it provided the same rights and protections of a traditional credit card transaction, said Attorney General Eliot Spitzer. But consumers were often denied those rights, he said.

For example, consumers who didn't receive merchandise purchased through PayPal were often denied reimbursement from either PayPal or American Express or Discover credit cards. A spokeswoman for Spitzer said consumers complained they were being bounced between PayPal and their credit card companies and there was no prompt action.

The credit card firms agreed to properly credit consumers in an agreement with Spitzer late last year.

PayPal creates accounts for buyers and sellers using the Internet, including PayPal's parent, eBay, the Internet auction site. The service lets buyers and sellers exchange money through e-mail.

Besides the penalties, PayPal will pay New York state the investigation costs. The online payment service also will clearly describe consumer rights including conditions or limitations on their rights and refund policies.

Without the agreement, consumers using their credit cards through "e-payment" systems like PayPal would lose their protections under the federal Fair Credit Billing Act and similar state laws.

"Protecting consumer rights in online transactions is the best way to establish and maintain confidence in electronic commerce," Spitzer said.

PayPal has clarified that it will investigate any claims about a deal as long as the complaint is made within 30 days of the purchase.

[Jester]

Take THAT Paypal!

[leslisa]

Good, I think it should have been a lot more. When they double dipped from my account, they told me I would have to contact the seller and get the money back. I thought WTF?? Luckily, I've only ever had the one problem with them.

Lisa

[Tyler T]

Yeah...i'm completely new, but it seems to me that you have to give PayPal practically full access to some sort of checking or banking account in order to become "verified." I don't like the idea of that. I'm thinking it may be a better idea to have 2 accounts, one that is empty or at least has very little money in it and one with all your money in it. Verify your PayPal account with the empty account and transfer funds into your verified account as necessary to pay for merchandise.

[finkle]

Tyler T, that's what I did. I set up an account simply for ebay and pp. Then, when I know I'm gonna buy something, I just transfer funds.