PayPal Settles NY Probe, But Faces Others

Coneasfast writes "PayPal, which is owned by eBay, has admitted misleading shoppers into believing it offered credit-card-style protection and has agreed to pay $150,000 to settle charges. There are many sites out there which are dedicated to the problems of paypal, including PayPalSucks and PaypalWarning." Reader ipandithurts links to this related Reuters story, pointing out that the New York investigation isn't the only PalPal probe: "PayPal's practice of suspending users accounts while investigating suspicious transactions continues to be review by the FTC. While the rate of fraudulent PayPal transactions is less than one-half of one percent, the volume of more than $12.2 billion last year keeps Paypal caught in the middle of many disputes."

Comments

Re:I'm done

[vanillacoke]

You do know that most banks (read: legit) do this service as well, and your money is protected with the famous FDIC insurance program. I trust paypal as far as I can throw it. Any program that "acts" like a bank making money off the interest of money in the accounts (and they do, and they still make more when your account is frozen! Banks aren't allowed to do that!!!), yet claims its not is not something I want to deal with much.