Options

Paypal loses New York State lawsuit

Unknown
edited March 2004 in Science & Tech
Some believe that PayPal implies a guarantee on your purchases, when in fact it does not. They're shelling out $150,000 to settle this one.
PayPal, the payment service of internet auction house eBay, has admitted misleading shoppers into believing it offered credit-card-style protection.
The full story

Submitted by panzerkw

Comments

  • ginipigginipig OH, NOES
    edited March 2004
    Wait, hasn't this been posted before?
  • LincLinc Owner Detroit Icrontian
    edited March 2004
    I think you saw it in the pub :)
  • Straight_ManStraight_Man Geeky, in my own way Naples, FL Icrontian
    edited March 2004
    PayPal is not the only one, Pricegrabber is doing something similar also. They talk about buyer protection, but read the fine print on teh guarantee. You know what's funny??? There is one company that "stands behind" a large number of these "portection" things and processes them. Same company does Yahoo, eBay (which basicly owned PayPal at the time of the transaction I will be setting forth below in summary), AND Pricegrabber protection.

    They DO NOT offer insurance, they offer a refund in part for a fee if the seller cheats you-- but you pay the fee upfront. CynoSure folks themselves told me this, more than three times at various levels. Note that to web purchasers, what shows is Cyno-Sure, but what happened when I called them in St. Clair Shores, MI is that the corp is CynoSure Financial, not an insurance group and they say as policy that they do not sell or offer insurance. Essentially, they are a refund expiditer that keeps the fees regardless.

    So, I buy through PayPal but with a Credit Card that is protected by Visa rules. I DO NOT use my bank account to send payments. And, I WILL not ever buy a "protection" policy type thing, because it is basicly a selling site protection setup. The companies that run the stores have less need for liability insurance in huge amounts with huge premiums if they can limit their liability, and that is what is going on here. I am doing my little part, a seller shipped something advertised falsely, I can prove it, and my bank agrees the charge will be revoked (charged back).

    If everyone did something similar, then the major store hosting companies, which take a part of the profits to the tune of an average of 2.9-3.5% of each transaction that goes through their selling systems, would be forced to clean up the sellers that cheat folks. This would actually be GOOD. If you wonder how the hosting companies are making money, they charge the sellers that they host a transaction fee, hosting fees, and other things that actually add up to more than I said. The figure I gave is the transaction fees to sellers. One of the things I have been looking at is the fee structure for a small online store on a major storefront.

    GOOD GOING, New York State!!! :D

    John D.
Sign In or Register to comment.