Paypal Vs. Merchant Account

By Author: Scott Burke
Total Articles: 113
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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

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About the Author:

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Scott Burke, President of MAXX Business Solutions is committed
to making the merchant experience a pleasure and one that will
build long-lasting business relationships. MAXX works as a
trusted partner in merchant account credit card processing
and strives to provide merchants with the best support,
the best rates, and the best service in the industry. http://www.cmscreditcards.com/payment-processing.html