PayPal Holdings, Inc. is an American company that operates online payment systems around the world that support online money transfers and serves as an electronic alternative to traditional paper methods such as checks and money orders. The Company operates as a payment processor for online vendors, auction sites, and other commercial users, who charge a small fee in exchange for benefits such as a one-click transaction and password memory.
Founded in 1998 as Confinity, PayPal had an initial public offering in 2002, and became a wholly owned subsidiary of eBay later that year.
In 2014, eBay announced plans to separate PayPal into an independent company by mid 2015 and it was completed on July 18, 2015.
Video PayPal
Histori
Sejarah awal
PayPal was founded in December 1998 as Confinity, a company that developed security software for handheld devices founded by Max Levchin, Peter Thiel, Luke Nosek, and Ken Howery. PayPal was developed and launched as a money transfer service in Confinity in 1999, funded by John Malloy of BlueRun Ventures.
In March 2000, Confinity joined X.com, an online banking company founded by Elon Musk. Musk is optimistic about the future success of the money transfer business developed by Confinity. Musk and then-president and CEO of X.com, Harris Fricker, disagreed at this point and Fricker left the company in May 2000. In October of that year, Musk made the decision that X.com would suspend its other Internet banking operations and focus on PayPal money service. That same month, Elon Musk was replaced by Peter Thiel as CEO of X.com. The X.com company was later renamed PayPal in 2001, and grew rapidly throughout the year until company executives decided to take public PayPal in 2002. Paypal's IPO is listed under the PYPL ticker at $ 13 per share and ultimately earns more than $ 61 million.
eBay branch (2002-2014)
Shortly after PayPal's IPO, the company was acquired by eBay in July 2002 for $ 1.5 billion, valued at more than $ 23 per share, or 77% above the IPO price. More than 70 percent of all eBay auctions accept PayPal payments, and about 1 in 4 closed auction auctions are transacted through PayPal. PayPal is the payment method used by the majority of eBay users (it's also the default option), and the service competes with eBay subsidiaries, Billpoint, and Citibank, PayDirect, Google Checkout and BidPay services from Western Union. , all of which were closed in the following years.
PayPal acquired VeriSign's payment solution in 2005 to expand its e-commerce business and provide additional security support. In 2007, PayPal announced a partnership with MasterCard that led to the development and launch of PayPal Secure Card services, software that allows customers to make payments on websites that do not accept PayPal directly by generating unexplained single MasterCard numbers for each checkout. At the end of 2007, the company generated $ 1.8 billion in revenue.
In January 2008, PayPal acquired Fraud Sciences, a privately-founded company in Israel with expertise in online risk tools, for $ 169 million, to improve PayPal's fraud management system. In November 2008, the company acquired Bill Me Later, an online payment company that offers transactional credit in more than 9000 online merchants in the US. PayPal's revenue for Q1 2009 was $ 643 million, up 11 percent year over year. 42 percent of revenue in Q1 2009 comes from the international market. Total PayPal Payment Volume (TPV), the total transaction value in Q1 2009 was nearly $ 16 billion, up 10 percent year over year.
In 2010, PayPal has over 100 million active user accounts in 190 markets through 25 different currencies. In July 2011, fourteen people suspected of hacktivist group members Anonymous were accused of trying to disrupt PayPal's operations. Service rejection attacks occurred in December 2010, after PayPal stopped processing donations to WikiLeaks. On December 5, 2013, 13 of PayPal 14 pleaded guilty to allegations of violations and crimes related to the attack.
The Company continues to build its Merchant Services division, providing electronic payments to retailers on eBay. In 2011, PayPal announced that it will start moving its business offline so customers can make payments via PayPal in stores. In August 2012, the company announced its partnership with Discover Card to enable PayPal payments to be made at one of the 7 million stores on the Discover Card network. By the end of 2012, the total amount of PayPal payments processed is US $ 145,000,000,000. and accounted for 40% of eBay revenue, of US $ 1,370,000,000 in the 3rd quarter of 2012.
In 2013, PayPal acquired IronPearl, a Palo Alto startup offering engagement software, and Braintree, a Chicago-based payment gateway, for further product development and cellular services. In June 2014, David Marcus announced that he was leaving his role as President of PayPal; Marcus joined PayPal in August 2011 after the acquisition of Zong, where he is the founder and CEO. David Marcus replaces Scott Thompson as president, who abandoned the role of joining Yahoo. PayPal announced that Marcus will be replaced by Dan Schulman, who previously served as CEO of Virgin Mobile and Executive Vice President of American Express.
Spin-off from eBay
Announced on September 30, 2014, eBay will separate PayPal into a separate public company, a move requested in 2013 by hedge fund magnate activist Carl Icahn. Spin-off finished on July 18, 2015. And Schulman is the current President and CEO, with former eBay CEO John Donahoe serving as chairman. On January 31, 2018 it was announced that, "Once an existing eBay-PayPal agreement expires in 2020, PayPal will remain a payment option for buyers on eBay, but will not be shown prominently ahead of the debit and credit card options as it is today. processing card payments for eBay at the time. "
In 2018, eBay announces that once the PayPal-PayPal agreement expires in 2020, PayPal will remain a payment option for buyers on eBay, but will not be prominently displayed in front of current debit and credit card options. PayPal will stop processing card payments for eBay at that time.
Acquisition of Xoom Corporation
On July 1, 2015, PayPal announced that it acquired a digital money transfer company Xoom Corporation. PayPal spends $ 25 per share in cash to get Xoom publicly traded, or about $ 1.09 billion. The deal closes in the fourth quarter of 2015. The move reinforces PayPal's international business, giving it access to 1.3 million active US customers from Xoom that send about $ 7 billion in the 12 months ended March 31, to people in 37 countries.
Swedish iZettle Acquisition
On May 17, 2018, PayPal agreed to purchase Swedish payment processor iZettle for $ 2.2 billion. This is PayPal's biggest acquisition to date and the company claims it's an in-store expertise and a digital marketing power that will complement its own online and mobile payment service.
Acquisitions
Maps PayPal
Office
The corporate headquarters of PayPal is located in San San Inn San Jose, San Jose, California, on the North First Street campus. The company's operating center is located in Omaha, Nebraska, which opened in 1999. Since July 2007, PayPal has operated throughout the EU as a bank based in Luxembourg. The European headquarters of PayPal is located in Luxembourg and the international headquarters are in Singapore. PayPal opened a technology center in Scottsdale, Arizona in 2006, and a software development center in Chennai, India in 2007. In October 2007, PayPal opened a data service office on the north side of Austin, Texas, and also opened a second operations center. in La Vista, Nebraska in the same year. In 2011, joining a similar customer support operation located in Berlin, Germany; Chandler, Arizona; Dublin, Ireland; Omaha, Nebraska; and Shanghai, China; PayPal opened a second customer support center in Kuala Lumpur, Malaysia, and started the recruitment process. In 2014, PayPal opens a new global operations center in Kuala Lumpur.
Services
In 2018, PayPal operates in 202 markets and has 237 million active, registered accounts. PayPal allows customers to send, receive, and hold funds in 25 currencies worldwide.
The PayPal service allows people to conduct online financial transactions by providing the ability to transfer funds electronically between individuals and businesses. Through PayPal, users can send or receive payments for online auctions on websites such as eBay, buy or sell goods and services, or donate money or receive donations. No need to have a PayPal account to use company services. PayPal account users can set currency conversion options in account settings, instructions.
From 2009 to 2016, PayPal operates a Student Account, allowing parents to create student accounts, transfer money into it, and get debit cards for students to use. The program provides tools to teach how to spend money wisely and be responsible for action. PayPal discontinues Student Accounts in August 2016.
In November 2009, PayPal opened its platform, enabling other services to gain access to its code and use its infrastructure to enable peer-to-peer online transactions.
In 2007, PayPal acquired online credit products Bill Me Later, Inc., which has since changed its name to PayPal Credit, and provides services to Comenity Capital Bank, a creditor of PayPal Credit account. Founded in 2000, Bill Me Later is headquartered in Timonium, Maryland, with additional offices in Hunt Valley, Maryland; Chandler, Arizona; and San Francisco, California. PayPal credit offers buyers access to an instant online revolving line of credit on thousands of vendors that accept PayPal, which is subject to credit approval. PayPal credit lets consumers shop online in the same way as on traditional credit cards. Changing Bill Me Later's name as PayPal Credits also means that consumers can use PayPal Credits to fund transactions virtually wherever PayPal is accepted. By 2015 PayPal agrees that PayPal Credits will pay a $ 25 million fine to resolve complaints filed in the Federal Court by the Consumer Financial Protection Bureau.
The PayPal app is available online or in the iTunes App Store and Google Play. A year after acquiring Braintree, PayPal introduced the "One Touch" service, which allows users to pay with a one-touch option on participating merchant websites or apps.
On November 28, 2011, PayPal reported Black Friday carrying a record of mobile engagement including a 538% increase in global mobile payment volume when compared to Black Friday 2010.
In 2012, the company launched "PayPal Here", a small business mobile payment system that includes a combination of free mobile apps and small card readers connected to smartphones.
PayPal launches an updated app for iOS and Android in 2013 that extends the capabilities of its mobile app by allowing users to search for local stores and restaurants that accept PayPal payments, order ahead at participating places, and access their PayPal Credit account (previously known as Bill Me Later).
Evolution of the business model
The success of PayPal in users and volume is the product of a three-phase strategy described by former eBay CEO Meg Whitman: "First, PayPal focuses on expanding its services among eBay users in the US Secondly, we are beginning to expand PayPal to eBay's international sites. thirdly, we started building a PayPal business outside of eBay. "
Phase 1
In the first stage, the volume of payments is mostly from the eBay auction site. This system is very attractive to auction sellers, most of whom are individuals or small businesses who can not accept credit cards, and for consumers as well. In fact, many sellers can not qualify for a credit card Merchant account because they have no commercial credit history. This service also appeals to auction buyers as they can fund PayPal accounts using credit cards or bank account balances, without divulging credit card numbers to unknown sellers. PayPal uses aggressive marketing campaigns to accelerate growth, depositing $ 10 in new user PayPal accounts.
Phase 2
Until 2000, PayPal's strategy was to earn interest on funds in PayPal accounts. However, most PayPal credit recipients withdraw funds immediately. Also, most senders fund their payments using credit cards, which PayPal charges about 2% of the payout value per transaction.
To resolve this issue, PayPal tailors its products to serve more business accounts. Rather than relying on interest earned from deposited funds, PayPal starts relying on revenue from service fees. They offer seller protection to PayPal account holders, provided they comply with the replacement policy. For example, a PayPal merchant is required to store proof of delivery that can be traced to a confirmed address or provide a signed receipt for goods over $ 750.
Phase 3
After refining PayPal's business model and increasing its domestic and international penetration on eBay, PayPal started its off-eBay strategy. This is based on the development of stronger growth in active users by adding users across multiple platforms, despite growth slowdown on eBay and the growth of single-digit users on eBay sites. The late reorganization of 2003 created a new business unit within PayPal - Merchant Services - to provide payment solutions to small and large e-commerce merchants outside the eBay auction community. Beginning in the second half of 2004, PayPal Merchant Services launched several initiatives to register online merchants outside the eBay auction community, including:
- Reduce transaction costs for high-volume merchants from 2.2% to 1.9% (while increasing the monthly transaction volume required to qualify for the lowest cost up to $ 100,000)
- Encourage users to recruit non-eBay merchants by increasing their referral bonus up to a maximum of $ 1000 (versus $ 100 before)
- Persuade credit card gateway providers, including CyberSource and US Retail Decisions, to include PayPal between their offers to online merchants.
- Hire new salespeople to acquire wholesalers like Dell, Apple iTunes, and Yahoo! Shop, which hosts thousands of online merchants
- Reduce costs for online music purchases and other "micro payments"
- Launch PayPal Mobile, which lets users make payments using text messages on their phones
Global reach
PayPal can be used in more than 200 countries.
Different countries have different conditions: Only send (Service Package only allows delivery, takes effect in 97 countries), PayPal Zero (package suggests possible signup, login and withdrawal in foreign currency, but the user can not hold a PayPal account balance, operates in 18 countries), SRW Send - Receive - Withdrawal (possible registration, input-output and ability to keep you PayPal account balance in eyes money and to transfer to card when user sees fit, operates in 41 countries) and Local Currency (SRW plus opportunity to transact in local currency, 21 countries).
China
In July 2017, PayPal announced a partnership with Baidu, to enable 100 million users of Chinese mobile wallets to make payments to 17 million PayPal merchants through Baidu services.
Japanese
At the end of March 2010, the new Japanese banking regulation forced PayPal Japan to suspend the capabilities of holders of registered personal accounts in Japan from sending or receiving money between individuals and as a result PayPal is now charged to all transactions.
India
In March 2011, PayPal made changes to the User Agreement for Indian users in order to comply with Reserve Bank of India regulations. The limit per transaction has been set to USD $ 3,000, since October 14, 2011. However, on July 29, 2013, PayPal increased the per-transaction limit to USD $ 10,000. It carries a per-transaction limit for India in accordance with the restrictions imposed by PayPal in most other countries.
PayPal has turned off the sending and receiving of private payments in India, thus forcing all recipients to pay for transaction fees.
PayPal plans to make India an incubation center for employee engagement policies. In 2012, PayPal employs 120 people for its offices in Chennai and Bangalore.
On November 8, 2017, PayPal launched its domestic operations under PayPal Payments Private Limited and now provides digital payment solutions for merchants and customers in India.
Crimea
In January 2015, PayPal suspended operations in the Crimea in accordance with international sanctions against Russia and the Crimea.
Turkish
Eight years after the company first started operations in the country, Paypal ceased operations in Turkey on June 6, 2016 when Turkey's BDDK financial regulator turned it down as a payment license. Regulators have requested that Paypal data centers be placed within Turkey to facilitate compliance with government and court orders to block content, and to generate tax revenues. PayPal said that closure will affect tens of thousands of businesses and hundreds of thousands of consumers in Turkey.
Israel and Palestinian Territories
PayPal is available in Israel but not available in Palestinian territories. Palestinians also can not work in the West Bank or Gaza, but Israeli citizens living in settlements in the West Bank may use PayPal. This difference has prompted technology companies to look for policy changes from PayPal.
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PayPal Giving Fund is a registered charity supported by Paypal that funnel donations to nonprofit organizations.
Digital marketing with PayPal
PayPal launches a variety of marketing activities across various channels and emphasizes that consumers can use them in different ways. Paypal marketing includes TV ads, outdoor advertising, Facebook, and display advertising.
PayPal provides free analysis to merchants about how consumers use online payments. With a free tracking service, PayPal helps merchants to target consumers. The PayPal code collects consumer information about the taxis posted on the merchant's website. Both PayPal and the merchant benefit from the free service.
PayPal works with "Synchrony Financial" and provides financial services to PayPal Cashback Mastercard, which offers 2% cash refunds to customers who shop online or in physical stores using PayPal. Cash back PayPal's cash back services promote the number of potential customers.
Apple allows PayPal as a way of payment for App Store, Apple Music, iTunes, and iBooks. PayPal can increase usage by the Apple platform. In addition, PayPal earns revenue from Apple services primarily from the App Store. Customers can use PayPal to purchase by connecting their PayPal payment system to their Apple ID account.
Rule
Thiel, PayPal's founder, has stated that PayPal is not a bank for not being involved in fractional backup banking. In contrast, unpaid PayPal funds are kept in a commercial interest-bearing account.
In the United States, PayPal is licensed as a money sender, on a country-by-country basis. But state legislation varies, as does the definition of a bank, a narrow bank, a money service business, and a money transmitter. Although PayPal is not classified as a bank, the company is subject to several rules and regulations governing the financial industry including consumer protection rules E and US PATRIOT Act. The most analogous source of legal rules for PayPal transactions comes from peer-to-peer (P2P) payments by credit and debit cards. Typically, credit card transactions, in particular the relationship between the issuing bank and the cardholder, are governed by the Truth in Lending Act (TILA) 15 U.S.C. Ã,§Ã,§ 1601-1667f as implemented by Regulation Z, 12 C.F.R. 226, (TILA/Z). TILA/Z requires special procedures for billing errors, dispute resolution, and limits the cardholder's responsibility for unauthorized charges. Similarly, the legal relationship between the debit cardholder and the issuing bank is governed by the Electronic Fund Transfer Act (EFTA) 15 U.S.C. Ã,§Ã,§ 1693-1693r, as implemented by Regulation E, 12 C.F.R. 205, (EFTA/E). EFTA/E is directed at consumer protection and provides strict error resolution procedures. However, since PayPal is a payment intermediate and is not regulated directly, TILA/Z and EFTA/E do not operate exactly as it was written after credit/debit card transactions took place via PayPal. Basically, unless the PayPal transaction is funded with a credit card, the consumer has no recourse in case of fraud by the seller.
In 2008, PayPal Europe granted Luxembourg's banking license, which, according to EU law, allows it to conduct banking business throughout the European Union. It is therefore regulated as a bank by the Luxembourg banking supervisory authority, the Commission de Surveillance du Secteur Financier (CSSF). All European accounts of the company were transferred to a PayPal bank in Luxembourg in July 2007. Prior to this move, PayPal was registered in the UK as PayPal (Europe) Ltd, an entity licensed as Electronic Money Publisher with UK Financial Services Authority (OJK) from 2004. This ceased in 2007, when the company moved to Luxembourg.
In India, in January 2010, PayPal does not have cross-border money transfer authorization. In The New York Times article "The Central Bank of India Stopped Some PayPal Services", Reserve Bank of India spokesman Alpana Killawalla stated: "Transboundary money transfer service providers require prior authorization from the Reserve Bank under the Payments and Settlement System Act, PayPal does not have our authorization. "PayPal is not listed in the" Certificate of Authorization issued by the Reserve Bank of India under the Payment System and Settlement Act, 2007 for Preparing and Payment of Operating Systems in India ". PaisaPay is an Indian sister service for PayPal, and is also owned by eBay. PaisaPay allows payments from overseas by PayPal account holders to Indian sellers on eBay.in.
In Australia, PayPal is licensed as an Authorized Deposit Insurance Agency (ADI) and hence is subject to Australian banking laws and regulations.
Safety and protection policy
PayPal Buyer Protection Policy states that a customer may file a buyer's complaint if he or she does not receive the item or if the item he purchased is not significantly as described. Customer may open disputes within 180 days (for registered UK residents 180 days, amended June 14, 2014) starting from the date of payment and forwarded to the claim within 20 days of the opening of the dispute. If a buyer uses a credit card, he may get a refund via chargeback from his credit card company. However, in the UK, where such a buyer is entitled to certain legal protection (that the credit card company is a second party to the purchase and therefore equally liable in law if the other party fails or goes into liquidation) under Article 75 Consumers Credit Act 1979, buyers lose this legal protection if card payments are processed through PayPal.
Also, the position of the Financial Ombudsman Service is that section 75 protection does not apply where PayPal or eMoney services are involved in credit card transactions. This leaves consumers with no way out to pursue their complaints with the Financial Ombudsman Service. They just ask for court assistance. However, the main issues that determine the application of article 75 are clearly identified in the Office of Fair Trade v Lloyds TSB Bank Plc and others [2006] EWCA Civ 268 7 and Scottish Bank vs. Alfred Truman (company) [2005] [EWHC] 583 (QB). It is the legal authority that part 75 protection exists where a person has paid on a credit card for a product, through eMoney service.
According to PayPal, this protects sellers on a limited basis through the Seller's Protection Policy. In general, the Seller Protection Policy is intended to protect sellers of a certain type of chargeback or complaint if the seller meets certain conditions including proof of delivery to the buyer. PayPal declares Seller's Protection Policy "designed to protect sellers against claims by buyers for unauthorized payments and against claims of non-acceptance of any goods". This policy includes a list of "Exceptions" that include "Intangible Goods", "Claims for receipt of goods 'not as described ' ", and "Total reversal exceeds annual limit". There are also other restrictions in terms of the sale itself, the method of payment and the country of destination the goods are sent to (only having the tracking mechanism is insufficient to ensure the Seller's Protection Policy applies). PayPal's Seller Protection Policy does not provide additional consumer protection provided by UK consumer laws (for example, Sale of Goods Act) and in addition can not be enforced in Courts because PayPal operates from Luxembourg, outside of all three UK legal jurisdictions.
Security
Security Token
In early 2006, PayPal introduced an optional security key as an additional precaution against fraud. User accounts tied to a security key have modified login. The account holder enters his or her login and password as usual, but is then asked to enter a six-digit code provided by a credit-card-sized hardware key or a text message sent to the account holder's phone. For convenience, the user can add the code generated by the hardware key to his password on the login screen. In this way he was not asked for it on another page. This method is required for some services, such as when using PayPal through the eBay app on iPhone.
Two-factor authentication is intended to make it difficult for accounts to be compromised by dangerous third parties without access to physical security keys, even if it does not prevent the so-called Man in the Browser (MITB) attacks. However, a malicious user (or third party) may authorize alternatively by providing the credit card number or bank account registered in his account. Thus the PayPal implementation does not offer the correct two-factor authentication security.
MTAN
It is also possible to use the mobile phone to receive mTAN (Mobile Transaction Authentication Number) via SMS. The use of the security code that is sent to the mobile phone of the account holder is currently free.
Fraud
In early 2001, PayPal had substantial issues with online fraud, especially international hackers who hacked into PayPal accounts and transfered small amounts of money from multiple accounts. The standard solution for merchant and banking fraud may be to use government criminal sanctions to pursue fraudsters. But with PayPal losing millions of dollars every month for fraud, while experiencing difficulties with using the FBI to pursue international fraud cases, PayPal developed a personalized solution: "a fraud monitoring system that uses artificial intelligence to detect potentially fraudulent transactions.... Instead of treating fraud issues as a legal matter, companies treat it as risk management. "
150,000 PayPal cards are frozen
By 2015, 150,000 Spanish card holders have frozen their funds in a clear fraud case involving PayPal's service provider, Money Younique, who is the de facto administrator of the card. Previously, PayPal has charged EUR15 to all unauthorized card users (150,000 users). As of March 2015, most of the funds have not been refunded.
PayPal MyCash Charge Card Reloadable
MyCash PayPal Card (PPMCC) is purchased and loaded at US retail and pharmaceutical stores. These cards are provided by InComm companies. Funds can only be loaded into a PayPal account, and done by scratching silver on the back of the card to reveal a secure PIN. It has been found that these secure PIN numbers are stored in plaintext form in the database, accessible to many InComm IT employees. Employees have picked up a PIN and loaded or traded for their own purposes. Meanwhile, the victim has a claim investigated by the ITC Financial Licenses company under InComm, with a very damaged model that blames the victim as a participant in Victims of Victim Fraud. The extent to which this situation is unknown, but victims with a small blog can find $ 5000 in casualties while researching his own case to finally prove this. A video reveals a known PIN number before silver has been scratched, and the victim can track the account of one of the loaded cards to return to the previous InComm Database Administrator.
Criticism
In 2003, PayPal voluntarily ceased serving as an intermediary for payments between gambling websites and their online customers. At the time of this termination, this is the largest payment processor for online gambling transactions. In 2010, PayPal accepts the transaction again, but only in countries where online gambling is legal, and only for sites with the appropriate license to operate in that jurisdiction.
If the account is subject to fraud or unauthorized use, PayPal places the "Limited Access" designation on that account. PayPal already has several important cases where the company has frozen user accounts like Richard Kyanka, the owner of the Something Awful website, in September 2005, Cryptome in March 2010, or April Winchell, owner of Regretsy, in December 2011. The account was restored, and PayPal requested sorry and donate for the purpose.
In September 2010, PayPal froze Markus Persson's account, an independent video game developer Minecraft . Persson publicly stated that he has not received a clear explanation as to why the account was frozen, and that PayPal threatened to save the money if they found anything wrong. His account contains about EUR600,000.
MasterCard PayPal partners stop taking donations to WikiLeaks in 2010, and PayPal also suspends, and then permanently restricted, payments to websites after the US State Department considers WikiLeaks activity as illegal. Supporters and online activists countered by subjecting PayPal and MasterCard, along with other companies, to a coordinated cyber attack.
In February 2011 PayPal unblocked a website account supporting the Iraq War opponents after having enough information to meet its customer guides. Chelsea Manning's Support Network claims backdown is a reaction to a petition to the company to return the account.
In December 2011, PayPal was involved in several class action lawsuits in controversy over their policy of holding 30% of vendor transactions for 90 days for some merchants and sellers, which PayPal says is intended to provide funds to customers at the event. that a transaction is found to be fraudulent; to provide PayPal funds to return money to the seller.
In May 2013, PayPal refused to pay the prize offered in the Bounty Bug Program to a 17-year-old German student who found cross-site scripting flaws on his site. The company takes the position because the student under the age of 18 he is not eligible to participate in the program that violates the terms and conditions of the program.
In August 2013, entrepreneurs who have used PayPal to collect the funds they collect on crowdfunding platforms such as Kickstarter and Indiegogo have reported difficulty withdrawing money. Most of the famous victims are Ouya, GlassUp (rival Google Glass), and Mailpile.
Since January 2015, a class action lawsuit against PayPal has been filed in Israel, claiming that they arbitrarily freeze the account and save up to 180 days without paying interest and thus profit from it immediately. The lawsuit calls for PayPal to be declared a monopoly and thus arranged accordingly.
In May 2014 PayPal blocked the account of the Russian human rights organization "RosUznik", which supports political prisoners arrested in the Bolotnaya Square case.
In April 2015 The Guardian reported PayPal blocked a London-based group of human rights justice accounts for Iran.
In May 2015 PayPal blocked accounts intended to raise money for Boris Nemtsov's report "Putin. War" report. The explanation by PayPal is that "PayPal does not offer the opportunity to use its system to raise funds to finance the activities of political parties or for political purposes in Russia", although PayPal's Acceptable Use Policy does not mention financing for political purposes. Non-governmental organization Freedom House issued a statement that "PayPal should immediately lift this ban, to help, rather than impede, suppress freedom in Russia."
In 2016, PayPal generated controversy after it was discovered that one of its founders, Peter Thiel, has funded a lawsuit filed by Hulk Hogan against Gawker. Thiel may benefit from a $ 140 million lawsuit that was decided in favor of a former wrestler.
Until 2016, ConsumerAffairs has received more than 1,200 consumer complaints related to PayPal's policies. Consumers have also launched many Facebook sites and anti-PayPal Twitter accounts to broadcast their complaints.
In February 2017, PayPal froze News Media Canada accounts, a Canadian trade association, in response to payments from The Reminder, Flin Flon, the Manitoba community newspaper, intended to cover the cost of filing a Reminder article for consideration in a national journalism contest run by the News Media Canada, including a discussion of Syrian refugees. PayPal cites US regulations as a reason for marking transactions between Canadian entities.
Litigation
In March 2002, two PayPal account holders separately sued the company for alleged violations of the Electronic Funds Transfer Act (EFTA) and California law. Most of the charges are related to the PayPal dispute settlement procedure. The two lawsuits were merged into one class action lawsuit (In re: PayPal litigation). An informal settlement was reached in November 2003, and an official settlement was signed on June 11, 2004. The settlement required PayPal to change its business practices (including changing the dispute resolution procedure to make it comply with EFTA), and making US $ 9.25 million in payments to class members. PayPal denies making a mistake.
In June 2003, Stamps.com filed a lawsuit against PayPal and eBay claiming a breach of contract, a breach of the implied agreement of good faith and fair transactions, and interference with the contract, among other claims. In a 2002 license agreement, Stamps.com and PayPal agreed that Stamps.com technology would be available to allow PayPal users to buy and print online postage from their PayPal account. Stamps.com claims that PayPal does not meet its contractual obligations and accuses eBay of interfering with PayPal and Stamps.com deals, then Stamp.com's reason for entering eBay in the lawsuit.
Craig Comb and two others filed a class action lawsuit against PayPal at Craig Comb, et al. v. PayPal, Inc. . They are suing, accusing the abuse of illegal customer accounts and detailing their customer service experience, including fund holdings that are held for up to 180 days until a dispute is resolved by PayPal. PayPal believes that plaintiffs are required to mediate their disputes under the American Arbitration Arbitration Arbitration Rule. The court ruled against PayPal, stating that "User Agreement and the arbitration clause are substantially subservient under California law."
In September 2002, Bank One Corporation sued PayPal for allegedly infringing the card payment system's patents. The following year, PayPal retaliated, claiming that Bank One's online billing payment system was a violation of PayPal's online bill payment patent, issued in 1998. The two companies agreed to a settlement in October 2003.
In November 2003, AT & T Corporation filed a lawsuit against eBay and PayPal claimed that their payment system violated AT & amp; T, was filed in 1991 and granted in 1994. The case was settled out of court the following month, on terms of an undisclosed location.
In June 2011, PayPal and Israel Credit Cards-Cal Ltd. sued for 16 million NIS. Plaintiffs alleged that PayPal had deliberately failed to notify its customers that ICC-Cal illegally imposed a currency conversion fee on them.
The class action lawsuit filed in 2010 is settled in 2016, in which the plaintiffs are fighting for PayPal's "suspension" of funds. PayPal has submitted a $ 3.2 million settlement in Zepeda v. PayPal that has not been ratified. As part of the settlement, the company agreed to amend some of its policies.
CFPB permissions
On May 21, 2015 PayPal agrees that PayPal Credit will pay a $ 25 million fine to settle a complaint filed in the Federal Court by the Consumer Financial Protection Bureau. The complaint alleges that consumers using PayPal have signed up for PayPal's credit account without their knowledge or consent. It alleges that PayPal has promised discounts and payment options that consumers never received, and that users who try to sign up for regular, non-credit, PayPal accounts sign up for credit accounts. The complaint was filed in the United States District Court for the District of Maryland, which ordered PayPal Credit to refund $ 15 million to consumers and pay a $ 10 million fine.
See also
References
External links
- Official website
Source of the article : Wikipedia
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