FTC and State AG's Investigating PayPal's Business Practices - GoFuckYourself.com

KRL · 03-08-2004, 10:51 AM

PayPal Probed for Anti-Fraud Efforts

WASHINGTON - Federal and state investigators are examining whether online payment service PayPal violated consumer-protection laws in its fight against online fraud, parent company eBay Inc. (NasdaqNM:EBAY - news) said on Monday.

PayPal sometimes freezes customer accounts while it investigates suspicious transactions, a practice that has generated complaints to consumer-protection authorities, the online auctioneer said in its annual report.

"As a result of customer complaints, PayPal has ... received inquiries regarding its restriction and disclosure practices from the Federal Trade Commission and the attorneys general of a number of states," the report said.

"If PayPal's processes are found to violate federal or state law on consumer protection and unfair business practices, it could be subject to an enforcement action or fines."

PayPal handled more than $12.2 billion in transactions in 2003 and has 40 million customer accounts, according to the annual report.

The rate of fraudulent PayPal transactions is less than one-half of one percent, eBay has said.

DamageX · 03-08-2004, 10:56 AM

Hope they get fined a nice amount, so it hurts as much as it did for me when they froze my account and caused me to lose business!

Neriah Davis · 03-08-2004, 10:58 AM

What are some alternate PayPal options? Are there any?

chupachups · 03-08-2004, 10:59 AM

About FUCKING time they did!!!!

cherrylula · 03-08-2004, 11:00 AM

Was reading another article, paypal says they freeze 2,000 accounts a day. ouch.

http://www.emediawire.com/releases/2004/3/emw108796.htm

yikes

http://paypalalert.com/

yahoo paydirect will process adult stuff, but not sure how great their service is so far.

SENSEX · 03-08-2004, 11:05 AM

http://www.paypalsucks.com

So many horror stories, I can't believe it's been this long.

PattyeCake* · 03-08-2004, 11:06 AM

Quote:

Originally posted by DamageX
Hope they get fined a nice amount, so it hurts as much as it did for me when they froze my account and caused me to lose business!

Ditto here

KRL · 03-08-2004, 11:09 AM

Quote:

Originally posted by Neriah Davis
What are some alternate PayPal options? Are there any?

A few people have been touting Yahoo's Pay Direct. I had opened one of those also but never used it, but I think they were pretty stringent also and have limits as well.

AllResell.com is a variant of StormPay open to adult processing. But its brand new so be careful. Some people have had problems, others have had no problems at all with StormPay.

KRL · 03-08-2004, 11:10 AM

Quote:

Originally posted by cherrylula
Was reading another article, paypal says they freeze 2,000 accounts a day. ouch.

http://www.emediawire.com/releases/2004/3/emw108796.htm

yikes

http://paypalalert.com/

yahoo paydirect will process adult stuff, but not sure how great their service is so far.

2,000 out of 40 million is not a big percentage of closures. I'm sure they get a lot of TOS violations, fraud, etc. in many of those cases.

candyflip · 03-08-2004, 12:13 PM

Quote:

Originally posted by Neriah Davis
What are some alternate PayPal options? Are there any?

There's only one worth using. In my opinion is easier and safer to use than Paypal. It's also backed by HSBC, which is one of the largest banks in the world. I have an HSBC account and money from my Paydirect account can get INSTANTLY added to either my checking or savings accounts.

http://paydirect.yahoo.com

bluff · 03-08-2004, 12:15 PM

YES!!

DamageX · 03-08-2004, 12:32 PM

Quote:

Originally posted by candyflip
There's only one worth using. In my opinion is easier and safer to use than Paypal. It's also backed by HSBC, which is one of the largest banks in the world. I have an HSBC account and money from my Paydirect account can get INSTANTLY added to either my checking or savings accounts.

http://paydirect.yahoo.com

Completely worthless for anyone living outside the US.

cool1 · 03-08-2004, 12:36 PM

Maybe it will actually make them better.

Stewie · 03-08-2004, 12:39 PM

about time.

candyflip · 03-08-2004, 12:39 PM

Quote:

Originally posted by DamageX

Completely worthless for anyone living outside the US.

It's not completely worthless if you're not in the states. Anyone using Paydirect can pay you using what amounts to a Prepaid ATM card that can be replenished at any time.

Yeah, you can't open an account and use the services, but I could pay you from my account if need be.

If you're in the states, this is the ONLY alternative to Paypal.

cherrylula · 03-08-2004, 12:43 PM

Quote:

Originally posted by KRL

2,000 out of 40 million is not a big percentage of closures. I'm sure they get a lot of TOS violations, fraud, etc. in many of those cases.

yeah true, I didn't really do the math.

Amazing how huge paypal is now. I remember when they first launched their $5 signup bonus and then bought x.com.

Now there's a cool domain to own.

03-08-2004, 10:51 AM	#1
KRL Entrepreneur Join Date: Oct 2002 Location: USA Posts: 31,429	FTC and State AG's Investigating PayPal's Business Practices PayPal Probed for Anti-Fraud Efforts WASHINGTON - Federal and state investigators are examining whether online payment service PayPal violated consumer-protection laws in its fight against online fraud, parent company eBay Inc. (NasdaqNM:EBAY - news) said on Monday. PayPal sometimes freezes customer accounts while it investigates suspicious transactions, a practice that has generated complaints to consumer-protection authorities, the online auctioneer said in its annual report. "As a result of customer complaints, PayPal has ... received inquiries regarding its restriction and disclosure practices from the Federal Trade Commission and the attorneys general of a number of states," the report said. "If PayPal's processes are found to violate federal or state law on consumer protection and unfair business practices, it could be subject to an enforcement action or fines." PayPal handled more than $12.2 billion in transactions in 2003 and has 40 million customer accounts, according to the annual report. The rate of fraudulent PayPal transactions is less than one-half of one percent, eBay has said. __________________ If you would like to develop your domains, you can lease inexpensive foreign labor from the leaders in the field at iWebmasters.com TO LOWER YOUR COSTS AND INCREASE YOUR PRODUCTION! * * * * * * * * * * * * Domains Adult News KRL's Newsletter Biz Tips Just Listed Domains

03-08-2004, 10:56 AM	#2
DamageX Marketing & Strategy Industry Role: Join Date: Jun 2001 Location: Former nomad Posts: 14,293	Hope they get fined a nice amount, so it hurts as much as it did for me when they froze my account and caused me to lose business! __________________ Whitehat is for chumps If you don't do it, somebody else will - true story!

03-08-2004, 10:58 AM	#3
Neriah Davis Confirmed User Join Date: Apr 2003 Location: Westsiiiiiiiide! Posts: 578	What are some alternate PayPal options? Are there any? __________________ First Class Playmate Content! Watch my Video!

03-08-2004, 12:36 PM	#13
cool1 sex is good Join Date: Sep 2001 Location: Carman, MB Canada Posts: 24,939	Maybe it will actually make them better. __________________

03-08-2004, 10:59 AM	#4
chupachups Confirmed User Join Date: Dec 2002 Location: Sweden/Spain you sum bitch! Posts: 6,576	About FUCKING time they did!!!!

03-08-2004, 11:00 AM	#5
cherrylula lol Industry Role: Join Date: Jan 2002 Posts: 15,969	Was reading another article, paypal says they freeze 2,000 accounts a day. ouch. http://www.emediawire.com/releases/2004/3/emw108796.htm yikes http://paypalalert.com/ yahoo paydirect will process adult stuff, but not sure how great their service is so far.

03-08-2004, 11:05 AM	#6
SENSEX Confirmed User Industry Role: Join Date: Jan 2003 Location: Someplace Special Posts: 1,159	http://www.paypalsucks.com So many horror stories, I can't believe it's been this long.

03-08-2004, 12:15 PM	#11
bluff Too lazy to set a custom title Join Date: Jan 2004 Location: Bluffville Posts: 6,253	YES!!

03-08-2004, 12:39 PM	#14
Stewie Confirmed User Industry Role: Join Date: Dec 2003 Location: In bed with Vanilla Posts: 3,670	about time.