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===Acquisition by eBay===
===Acquisition by eBay===
In October 2002, PayPal was acquired by eBay for $1.5 billion.<ref>{{cite news|author=Kane, Margaret|title=eBay picks up PayPal for $1.5 billion|url=http://www.news.com/2100-1017-941964.html|date=July 8, 2002|work=CNET News.com|publisher=CNET Networks|accessdate=2007-11-13}}</ref> PayPal had previously been the payment method of choice by more than fifty percent of eBay users, and the service competed with eBay's subsidiary [[Billpoint]], [[Citibank]]'s c2it, whose service was closed in late 2003, and [[Yahoo!]]'s [[PayDirect]], whose service was closed in late 2004. Western Union announced the December 2005 shut down of their [[BidPay]] service but subsequently sold it in 2006 to [[CyberSource|CyberSource Corporation]]. BidPay subsequently ceased operations on December 31, 2007. Some competitors which offer some of PayPal's services, such as [[Google Checkout]], [[Wirecard]], [[Moneybookers]], [[2Checkout.com|2Checkout]], [[CCNow]] and [[Kagi (service)|Kagi]], remain in business, despite the fact that eBay now requires everyone on its [[Australian]] and [[United Kingdom]] sites to offer PayPal.<ref>[http://www2.ebay.com/aw/uk/200803211515302.html eBay announcement March 24, 2008 09:00AM GMT]</ref><ref>[http://pages.ebay.com.au/useprotection/changes.html eBay Australia announcing PayPal will be the exclusive payment method from June 17, 2008.]</ref>
In October 2002, PayPal was acquired by eBay for $1.5 billion.<ref>{{cite news|author=Kane, Margaret|title=eBay picks up PayPal for $1.5 billion|url=http://www.news.com/2100-1017-941964.html|date=July 8, 2002|work=CNET News.com|publisher=CNET Networks|accessdate=2007-11-13}}</ref> PayPal had previously been the payment method of choice by more than fifty percent of eBay users, and the service competed with eBay's subsidiary [[Billpoint]], [[Citibank]]'s c2it, whose service was closed in late 2003, and [[Yahoo!]]'s [[PayDirect]], whose service was closed in late 2004. Western Union announced the December 2005 shut down of their [[BidPay]] service but subsequently sold it in 2006 to [[CyberSource|CyberSource Corporation]]. BidPay subsequently ceased operations on December 31, 2007. Some competitors which offer some of PayPal's services, such as [[Google Checkout]], [[Wirecard]], [[Moneybookers]], 2Checkout.com, CCNow and Kagi, remain in business, despite the fact that eBay now requires everyone on its [[Australian]] and [[United Kingdom]] sites to offer PayPal.<ref>[http://www2.ebay.com/aw/uk/200803211515302.html eBay announcement March 24, 2008 09:00AM GMT]</ref><ref>[http://pages.ebay.com.au/useprotection/changes.html eBay Australia announcing PayPal will be the exclusive payment method from June 17, 2008.]</ref>
Eventually eBay moderated its position, and mandated that sellers on eBay Australia offer PayPal as one of the (but not necessarily the only) payment methods.<ref>[http://pages.ebay.com.au/useprotection/changes.html eBay Australia announcing PayPal must be one of the payment methods accepted by sellers.]</ref> These accepted payment methods include bank deposit, cheques and money orders, escrow, and credit cards (processed by other than PayPal).<ref>[http://pages.ebay.com.au/securitycentre/payment-options.html eBay Australia payment options, which include methods other than PayPal.]</ref>
Eventually eBay moderated its position, and mandated that sellers on eBay Australia offer PayPal as one of the (but not necessarily the only) payment methods.<ref>[http://pages.ebay.com.au/useprotection/changes.html eBay Australia announcing PayPal must be one of the payment methods accepted by sellers.]</ref> These accepted payment methods include bank deposit, cheques and money orders, escrow, and credit cards (processed by other than PayPal).<ref>[http://pages.ebay.com.au/securitycentre/payment-options.html eBay Australia payment options, which include methods other than PayPal.]</ref>


In January 2008, PayPal agreed to acquire [[Fraud Sciences]], a privately-held [[Israel]]i start-up company with expertise in online risk tools, for $169 million, in order to enhance eBay and PayPal's proprietary fraud management systems and accelerate the development of improved fraud detection tools.<ref>[http://tagedge.com/2008/01/28/paypal-acquires-fraudsciences/ Tagedge.com]</ref> In November 2008, the company acquired [[Bill Me Later]], an online payments company offering transactional credit at over 1000 online merchants in the US.<ref>[https://www.paypal-media.com/releasedetail.cfm?ReleaseID=346724 Paypal-Media.com]</ref>
In January 2008, PayPal agreed to acquire Fraud Sciences, a privately-held [[Israel]]i start-up company with expertise in online risk tools, for $169 million, in order to enhance eBay and PayPal's proprietary fraud management systems and accelerate the development of improved fraud detection tools.<ref>[http://tagedge.com/2008/01/28/paypal-acquires-fraudsciences/ Tagedge.com]</ref> In November 2008, the company acquired [[Bill Me Later]], an online payments company offering transactional credit at over 1000 online merchants in the US.<ref>[https://www.paypal-media.com/releasedetail.cfm?ReleaseID=346724 Paypal-Media.com]</ref>


PayPal's total payment volume, the total value of transactions, was [[US$]] 60 billion in 2008, an increase of 27 percent over the previous year.<ref name="paypal-media.com">[https://www.paypal-media.com/documentdisplay.cfm?DocumentID=2260 Paypal-Media.com]</ref> The company continues to focus on international growth and growth of its Merchant Services division, providing e-payments for retailers of eBay.
PayPal's total payment volume, the total value of transactions, was [[US$]] 60 billion in 2008, an increase of 27 percent over the previous year.<ref name="paypal-media.com">[https://www.paypal-media.com/documentdisplay.cfm?DocumentID=2260 Paypal-Media.com]</ref> The company continues to focus on international growth and growth of its Merchant Services division, providing e-payments for retailers of eBay.

Revision as of 16:11, 16 April 2010

PayPal Inc.
File:PayPal website.png
PayPal homepage
Type of businessSubsidiary of eBay Inc.
Available inMultilingual
FoundedPalo Alto, California USA (1998)
HeadquartersSan Jose, California USA
Area servedWorldwide
OwnereBay Inc.
Founder(s)Elon Musk
Max Levchin
Peter Thiel
Luke Nosek
Ken Howery
Net income$2.23 billion
URLwww.paypal.com
AdvertisingNone
RegistrationOptional
Current statusActive
eBay's North First Street satellite office campus (home to PayPal's corporate headquarters)

PayPal is an e-commerce business allowing payments and money transfers to be made through the Internet. PayPal serves as an electronic alternative to traditional paper methods such as checks and money orders and has been involved in many cases of litigation concerning fraud scams.

A PayPal account can be funded with an electronic debit from a bank account or by a credit card. The recipient of a PayPal transfer can either request a check from PayPal, establish their own PayPal deposit account or request a transfer to their bank account. PayPal is an example of a payment intermediary service that facilitates worldwide e-commerce.

PayPal performs payment processing for online vendors, auction sites, and other commercial users, for which it charges a fee. It sometimes also charges a transaction fee for receiving money (a percentage of the amount sent plus an additional fixed amount). The fees charged depend on the currency used, the payment option used, the country of the sender, the country of the recipient, the amount sent and the recipient's account type.[2] In addition, eBay purchases made by credit card through PayPal may incur a "foreign transaction fee" if the seller is located in another country, as credit card issuers are automatically informed of the seller's country of origin.

On October 3, 2002, PayPal became a wholly owned subsidiary of eBay.[3] Its corporate headquarters are in San Jose, California, United States at eBay's North First Street satellite office campus. The company also has significant operations in Omaha, Nebraska; Scottsdale, Arizona; and Austin, Texas in the U.S., Chennai, Dublin, Berlin and Tel-Aviv. As of July 2007, across Europe, PayPal also operates as a Luxembourg-based bank.

On March 17, 2010, PayPal entered into an agreement with China UnionPay (CUP), China's bankcard association, to allow Chinese consumers to use PayPal to shop online.[citation needed] PayPal is planning to expand its workforce in Asia to 2,000 by the end of the year 2010.[4][5]

History

Beginnings

The current incarnation of PayPal is the result of a March 2000 merger between Confinity and X.com.[6] Confinity was founded in December 1998 by Max Levchin, Peter Thiel, Luke Nosek, and Ken Howery, initially as a Palm Pilot payments and cryptography company.[7] X.com was founded by Elon Musk in March 1999, initially as an Internet financial services company. Both Confinity and X.com launched their websites in late 1999. Both companies were located on University Avenue in Palo Alto. Confinity's website was initially focused on reconciling beamed payments from Palm Pilots[8] with email payments as a feature and X.com's website initially featured financial services with email payments as a feature.

At Confinity, many of the initial recruits were alumni of The Stanford Review, also founded by Peter Thiel, and most early engineers hailed from the University of Illinois at Urbana-Champaign, recruited by Max Levchin. On the X.com side, Elon Musk recruited a wide range of technical and business personnel, including many that were critical to the combined company's success, such as Amy Klement, Sal Giambanco, Roelof Botha[9] of Sequoia Capital, Sanjay Bhargava and Jeremy Stoppelman.[10]

To block potentially fraudulent access by automated systems, PayPal used a system (see CAPTCHA) of making the user enter numbers from a blurry picture, which they coined the Gausebeck-Levchin test.[11]

eBay watched the rise in volume of its online payments and realized the fit of an online payment system with online auctions. eBay purchased Billpoint in May 1999, prior to the existence of PayPal. eBay made Billpoint its official payment system, dubbing it "eBay Payments," but cut the functionality of Billpoint by narrowing it to only payments made for eBay auctions. For this reason, PayPal was listed in many more auctions than Billpoint. In February 2000, the PayPal service had an average of approximately 200,000 daily auctions while Billpoint (in beta) had only 4,000 auctions.[11][12][13][14] By April 2000, more than 1,000,000 auctions promoted the PayPal service.[15] PayPal was able to turn the corner and become the first dot-com to IPO after the September 11 attacks.[16]

Acquisition by eBay

In October 2002, PayPal was acquired by eBay for $1.5 billion.[17] PayPal had previously been the payment method of choice by more than fifty percent of eBay users, and the service competed with eBay's subsidiary Billpoint, Citibank's c2it, whose service was closed in late 2003, and Yahoo!'s PayDirect, whose service was closed in late 2004. Western Union announced the December 2005 shut down of their BidPay service but subsequently sold it in 2006 to CyberSource Corporation. BidPay subsequently ceased operations on December 31, 2007. Some competitors which offer some of PayPal's services, such as Google Checkout, Wirecard, Moneybookers, 2Checkout.com, CCNow and Kagi, remain in business, despite the fact that eBay now requires everyone on its Australian and United Kingdom sites to offer PayPal.[18][19] Eventually eBay moderated its position, and mandated that sellers on eBay Australia offer PayPal as one of the (but not necessarily the only) payment methods.[20] These accepted payment methods include bank deposit, cheques and money orders, escrow, and credit cards (processed by other than PayPal).[21]

In January 2008, PayPal agreed to acquire Fraud Sciences, a privately-held Israeli start-up company with expertise in online risk tools, for $169 million, in order to enhance eBay and PayPal's proprietary fraud management systems and accelerate the development of improved fraud detection tools.[22] In November 2008, the company acquired Bill Me Later, an online payments company offering transactional credit at over 1000 online merchants in the US.[23]

PayPal's total payment volume, the total value of transactions, was US$ 60 billion in 2008, an increase of 27 percent over the previous year.[24] The company continues to focus on international growth and growth of its Merchant Services division, providing e-payments for retailers of eBay.

Business today

Currently, PayPal operates in 190 markets, and it manages over 184 million accounts, more than 73 million of them active. PayPal allows customers to send, receive, and hold funds in 19 currencies worldwide[24]. These currencies are the Australian dollar, Canadian dollar, Chinese renminbi yuan (only available for some Chinese accounts, see below), Euro, pound sterling, Japanese yen, Czech koruna, Danish krone, Hong Kong dollar, Hungarian forint, Israeli new sheqel, Mexican peso, New Zealand dollar, Norwegian krone, Polish zloty, Singapore dollar, Swedish krona, Swiss franc and U.S. dollar. PayPal operates locally in 13 countries.

Residents in 194 markets can use PayPal in their local markets to send money online.

PayPal revenues for Q1 2009 were $643 million, up 11 percent year over year. 42 percent of revenues in q1 2009 were from international markets. PayPal's Total Payment Volume (TPV), the total value of transactions in Q1 2009 was nearly $16 billion, up 10 percent year over year.[25]

In 2008, PayPal's TPV off eBay exceeded volume on eBay for the first time. PayPal's Total Payment Volume in 2008 was $60 billion representing nearly 9 percent of global e-commerce and 15 percent of US e-commerce[26]

At an analyst day on March 11, 2009, eBay CEO, John Donahoe announced that PayPal could be a larger driver of revenue than the eBay marketplaces business.[27] RIM announced that PayPal will be the only payment mechanism for its Blackberry App World, which launched on April 1, 2009.[28]

In China PayPal offers two kinds of accounts:

  • PayPal.com accounts, for sending and receiving money to/from other PayPal.com accounts. All non-Chinese accounts are PayPal.com accounts, so these accounts may be used to send money internationally.
  • PayPal.cn accounts, for sending and receiving money to and from other PayPal.cn accounts.

It is impossible to send money between PayPal.cn accounts and PayPal.com accounts, so PayPal.cn accounts are effectively unable to make international payments. For PayPal.cn, the only supported currency is the renminbi.

Although PayPal's corporate headquarters are located in San Jose, PayPal's operations center is located near Omaha, Nebraska, where the company employs more than 2,000 people as of 2007.[29]. PayPal's European headquarters are in Luxembourg and international headquarters in Singapore. The company also recently opened a technology center in Scottsdale, Arizona, and Chennai India.

PayPalLabs

PayPal's innovation environment, Paypal-Labs.com[30], hosts several outreach and experimental projects such as the storefront application[31], the MySpace and Facebook donation widgets, and the PayPal blog.[32]

Bank status

In the United States, PayPal is licensed as a money transmitter on a state-by-state basis.[33] PayPal is not classified as a bank in the United States, though the company is subject to some of the rules and regulations governing the financial industry including Regulation E consumer protections and the USA PATRIOT Act.[34]

Commencing 2 July 2007, as PayPal (Europe) S.à r.l. & Cie, S.C.A., PayPal moved its European operations from the UK to Luxembourg. As a Luxembourg entity, it is since regulated as a bank by the Commission de Surveillance du Secteur Financier (CSSF) and provides PayPal service throughout the European Union.

Safety and protection policies

The PayPal Buyer Protection Policy states that customers may file a buyer complaint within 45 days if they did not receive an item or if the item they purchased was significantly not as described. If the buyer used a credit card, they might get a refund via chargeback from their credit card company.

According to PayPal, it protects sellers in a limited fashion via the Seller Protection Policy.[35] In general the Seller Protection Policy is intended to protect the seller from certain kinds of chargebacks or complaints if seller meets certain conditions including proof of delivery to the buyer. PayPal states the Seller Protection Policy is "designed to protect sellers against claims by buyers of unauthorized payments and against claims of non-receipt of any merchandise". Note that this contrasts with the consumer protection they offer. This policy should be read carefully before assuming protection. In particular the Seller Protection Policy includes a list of "Exclusions" which itself includes "Intangible goods", "Claims for receipt of goods 'not as described'" and "Total reversals over the annual limit". There are also other restrictions in terms of the sale itself, the payment method and the destination country the item is shipped to (simply having a tracking mechanism is not sufficient to guarantee the Seller Protection Policy is in effect).[36] A class-action lawsuit was filed against PayPal, days after the company's successful initial public offering.[37]

Security

A PayPal security key generates a six-digit temporary login code to authenticate the user.

Security key

In early 2006, PayPal introduced an optional security key as an additional precaution against fraud. A user account tied to a security key has a modified login process: the account holder enters their login ID and password, as normal, but is then prompted to press the button on the security key and enter the six-digit number generated by it. This two-factor authentication is intended to prevent an account from being compromised by a malicious third party without access to the physical security key. However, the user (or malicious third party) can alternatively authenticate by providing the credit card or bank account number listed on their account. Thus, the PayPal's implementation does not offer the security of true two-factor authentication.

The key currently costs US$5.00 for all users with no ongoing fees.[38] The option of using a security key with one's account is currently available only to users registered in Australia, Germany, Canada, the United Kingdom and the United States.[39]

MTAN

It is also possible to use a mobile phone to receive an MTAN (Mobile Transaction Authentication Number) via SMS[40] , however this security scheme has known vulnerabilities.[41]

Regulation

In Europe, PayPal is registered as a bank in Luxembourg under the legal name PayPal (Europe) Sàrl et Cie SCA, a company regulated centrally by the Luxembourg bank authority, the Commission de Surveillance du Secteur Financier (CSSF)[42] (note that all of the company's European accounts were transferred to the PayPal's bank in Luxembourg on July 2, 2007.[43]) Prior to this move, PayPal had been registered in the UK as Paypal (Europe) Ltd, an entity which was licensed as an Electronic Money Issuer with the UK's Financial Services Authority (FSA) from 2004. This ceased in 2007, when the company moved to Luxembourg,[44][45]

In the US, although PayPal has an extensive User Agreement,[46] PayPal is not directly regulated by the U.S. federal government, because it serves as a payment intermediary.[47] The law is unclear as to whether PayPal is a bank, narrow bank, money services business or money transmitter. PayPal could also be subject to state regulation, but state laws vary, as do their definitions of banks, narrow banks, money services businesses and money transmitters. The most analogous regulatory source of law for PayPal transactions comes from P2P payments using credit and debit cards. Ordinarily, a credit card transaction, specifically the relationship between the issuing bank and the cardholder, is governed by the Truth in Lending Act (TILA) 15 U.S.C. §§ 1601-1667f as implemented by Regulation Z, 12 C.F.R. pt. 226, (TILA/Z). TILA/Z requires specific procedures for billing errors, dispute resolution and limits cardholder liability for unauthorized charges.[48] Similarly, the legal relationship between a debit cardholder and the issuing bank is regulated by the Electronic Funds Transfer Act (EFTA) 15 U.S.C. §§ 1693-1693r, as implemented by Regulation E, 12 C.F.R. pr. 205, (EFTA/E). EFTA/E is directed at consumer protection and provides strict error resolution procedures.[49] However, because PayPal is a payment intermediary and not otherwise regulated directly, TILA/Z and EFTA/E do not operate exactly as written once the credit/debit card transaction occurs via PayPal. Basically, unless a PayPal transaction is funded with a credit card, the consumer has no recourse in the event of fraud by the seller.[citation needed]

In India, as of January 27, 2010, PayPal has no cross-border money transfer authorization. The New York Times article "India’s Central Bank Stops Some PayPal Services" Reserve Bank of India spokesman Alpana Killawalla stated, "Providers of cross-border money transfer service need prior authorization from the Reserve Bank under the Payment and Settlement Systems Act, PayPal does not have our authorization." [50] PayPal is not listed in the "Certificates of Authorisation issued by the Reserve Bank of India under the Payment and Settlement Systems Act, 2007 for Setting up and Operating Payment System in India" [51]

Fraud

Money transfers via PayPal create an inherent risk of fraud due to the impersonal nature of internet commerce and the gap in regulatory treatment of PayPal transactions. The existing fraud protection regulations, EFTA/E and TILA/Z, do not apply to P2P account holders as they do debit/credit card transactions outside of a P2P payment service.

If an unauthorized third party obtains and uses someone's PayPal login information and completes a transaction using the accountholder's debit or credit card, EFTA/E and TILA/Z make PayPal responsible for the breach. There are, of course, fact specific exceptions to this rule. One is if funds are illicitly withdrawn from a PayPal deposit account. In that situation, neither PayPal nor the bank is required to return the funds, because the agreement between a consumer and PayPal makes those types of transactions authorized.[52]

PayPal account holders' private information is marginally protected under one federal law. Since PayPal is a financial institution under the Gramm-Leach-Bliley Act (GLB), it cannot disclose its account holders' non-public personal information to third parties unless account holders opt in to those disclosures.[53]

If an account is subject to fraud or unauthorized use, PayPal puts the "Limited Access" designation on the account. At this point, the account holder must:

  • Log in
  • Reset their password
  • Develop a set of security questions (based on the hypothetical and not fact — e.g. "What is your favorite ice cream?" not "What is your mother's maiden name?")
  • Verify location by landline phone or by mail

Phishing

PayPal presents anti-Phishing advice on their website[54] for identifying and reporting phishing. PayPal encourages consumers to report all phishing emails to them.

Criticism and limitations

See also: Criticism of eBay

Paypal's terms of service are not completely disclosed upon signup and some key "conditions" are not disclosed.[citation needed]

In September 2005, Richard Kyanka, owner of the website Something Awful, set up an account to collect donations for Hurricane Katrina to be given to the Red Cross. Owing to the high rate at which donations were made, the account was automatically frozen, and Kyanka criticized the time and difficulty involved in getting PayPal's customer service to unfreeze the account. In response to the concerns of Something Awful members over the charity used by PayPal, United Way, Kyanka finally opted to have the money refunded to the donors so that they could donate directly to their charities of choice, though PayPal did not refund exchange and handling fees for international donors.[55][56]

In March 2008, Australian current affairs show Today Tonight aired a segment criticising PayPal, with regard to safety, freezing accounts and customer service.[57]

Several PayPal gripe sites have been created complaining of problems such as the freezing of accounts of eCommerce stores if they experience rapid growth, preventing them from being able to pay suppliers and fulfill orders.[58]. One such site, Paypalsucks.com,[5] ranked third on a Forbes Magazine listing of "Top Corporate Hate Web Sites" in 2005 based on "hostility" and "entertainment value" of web forum postings and other criteria.[59]

In June 2008, the Australian Competition and Consumer Commission found that, "The evidence available does not support the view that PayPal is the most secure method of payment, or offers the best service for all transactions."[60]

In February 2010, Paypal stopped or reversed all "personal" transactions in or out of India without prior notice. Funds already transferred and transactions that had previously been "completed" were reversed leaving many vendor accounts over-drafted. Companies, contractors and service providers throughout India were left in debt to Paypal for services they had already provided when Paypal, without warning or consent, returned funds vendors had already received and withdrawn.[61]

In spite of its international reach, Paypal has limited functionalites for multi-country users, most notably the impossibility to have bank accounts in several countries, or to have a shipping address in a different country than one's bank account / credit card.

In March 2010, Paypal froze donations to Cryptome, seizing over $5300 of in-transit donations.[62] PayPal refused to inform Cryptome of the reason for this action, claiming that to disclose why the donations had been confiscated would violate Cryptome's own privacy.[63] A week later, PayPal offered an apology, which was rejected by Cryptome founder John Young as "insulting and unacceptable".[64]

Litigation

In 2002, CertCo filed a suit against PayPal claiming patent infringement concerning the use of distributed computing systems that process micropayments, or small cash amounts. In April 2002, CertCo dropped the suit and stated that they had come to a settlement involving, "a non-consequential payment and mutual releases."[65]

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 allegations concerned PayPal's dispute resolution procedures. The two lawsuits were merged into one class action lawsuit (In re: PayPal litigation). An informal settlement was reached in November 2003, and a formal settlement was signed on June 11, 2004. The settlement requires that PayPal change its business practices (including changing its dispute resolution procedures to make them EFTA-compliant), as well as making a US$9.25 million payment to members of the class. PayPal denied any wrongdoing.[66]

In May 2002, Tumbleweed Communications filed a lawsuit against PayPal (and later expanded it to include eBay) claiming that PayPal had violated its patents for sending personalized links through e-mail, which PayPal uses to alert its customers about financial transactions. In January 2004, the two parties came to an agreement, but didn't disclose the financial terms of their licensing agreement.[67]

In June 2003, Stamps.com filed a lawsuit against PayPal and eBay claiming breach of contract, breach of the implied covenants of good faith and fair dealing, and interference with contract, among other claims. In a 2002 license agreement, Stamps.com and PayPal agreed that Stamps.com technology would be made available to allow PayPal users to buy and print postage online from their PayPal accounts. Stamps.com claimed that PayPal did not live up to its contractual obligations and accused eBay of interfering with PayPal and Stamps.com's agreement, hence Stamp.com's reasoning for including eBay in the suit.[68]

In August 2002, Craig Comb and others filed a class action against PayPal in, Craig Comb, et al. v. PayPal, Inc.. They sued for alleged mishandling of customer accounts and customer services, with regard to PayPal's user agreement. Allegations included restricting deposited funds for up to 180 days until disputes are resolved; and forcing customers to arbitrate their disputes under the American Arbitration Association's guidelines (a costly procedure), and requiring users to file claims individually rather than collectively, which undoubtedly quashes the use of class action suits. The court stated that "the User Agreement and arbitration clause are substantively unconscionable under California law" and ruled in favor of Comb.[69]

In September 2003, PayPal filed suit against Bank One Corporation for patent infringement. PayPal claimed that Bank One's online bill-payment system was an infringement against PayPal's online bill-payment patent, issued in 1998. PayPal filed the suit after a warning to the bank's lawyers in February went unheeded.[70]

In November 2003, AT&T filed suit against eBay and PayPal claiming that their payment systems infringed an AT&T patent, filed in 1991 and granted in 1994.[71]

In March 2004, PayPal and New York state's Attorney General, Eliot Spitzer, came to an agreement to require PayPal to disclose clients' rights and liabilities more accurately and to pay $150,000 to the state of New York for penalties and the costs of the investigation.[72]

In April 2007, one of two anti-trust lawsuits was filed against eBay/PayPal by Michael Malone of Texas.[73] This suit claims that the monopolistic relationship between eBay and PayPal violates United States anti-trust laws. The case is still pending.

See also

References

  1. ^ "paypal.com - Traffic Details from Alexa". Alexa Internet, Inc. Retrieved 2009-10-17.
  2. ^ Paypal.com
  3. ^ Troy Wolverton (2002-10-03). "It's official: eBay weds PayPal". CNet. Retrieved 2007-05-07.
  4. ^ PayPal Expands in Asia, Announces Partnership with China UnionPay
  5. ^ PayPal Expands Services In Asia
  6. ^ "FindlawDocumentation". 2006-12-31.
  7. ^ "Wired Article-PayPal Puts Dough in Your Palm". 2006-12-31.
  8. ^ "Wired Article". 1999-07-27.
  9. ^ Roelof Botha - Venture Capitalist - Sequoia Capital
  10. ^ PayPal: An alternate history according to Elon Musk
  11. ^ a b Screw-Paypal.com
  12. ^ [1]
  13. ^ Shvoong.com
  14. ^ Theanalystmagazine.com
  15. ^ [2]
  16. ^ Ecommercetimes.com
  17. ^ Kane, Margaret (July 8, 2002). "eBay picks up PayPal for $1.5 billion". CNET News.com. CNET Networks. Retrieved 2007-11-13.
  18. ^ eBay announcement March 24, 2008 09:00AM GMT
  19. ^ eBay Australia announcing PayPal will be the exclusive payment method from June 17, 2008.
  20. ^ eBay Australia announcing PayPal must be one of the payment methods accepted by sellers.
  21. ^ eBay Australia payment options, which include methods other than PayPal.
  22. ^ Tagedge.com
  23. ^ Paypal-Media.com
  24. ^ a b Paypal-Media.com
  25. ^ Shareholder.com
  26. ^ PayPal corporate fact sheet Paypal-Media.com
  27. ^ Digitaltransactions.net
  28. ^ Blackberrynews.com
  29. ^ Virgil Larson, "Local building, global growth: PayPal opens facility, plans to expand staff to keep up with business," Omaha World-Herald, March 8, 2007, 1D.
  30. ^ Paypal-Labs.com
  31. ^ storefront application
  32. ^ PayPal blog
  33. ^ Wolverton, Troy, FDIC decides PayPal's no bank, ZDNet News, 2002-03-13, accessed 2008-03-19
  34. ^ Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA Patriot Act) Act of 2001, Pub. L. No. 107-56, 115 Stat. 272 (2001)
  35. ^ User Agreement for PayPal Service (it reads in part: "Credit card chargeback rights, if they apply, are broader than PayPal Buyer Protection")
  36. ^ The in-line paypal URL in this section. Disputes between Buyers and Sellers - Buyer Protection Programs.
  37. ^ CNet.com
  38. ^ eBay Security Center: PayPal Security Key
  39. ^ PayPal Help Center Paypal.com
  40. ^ "PayPal Security Key - PayPal". Retrieved 2009-08-18.
  41. ^ "Investigators Replicate Nokia 1100 Online Banking Hack - Business Center - PC World". www.pcworld.com. Retrieved 2009-05-25.
  42. ^ Paypal.com
  43. ^ Businessweek.com
  44. ^ FSA.gov.uk
  45. ^ Telegraph.co.uk
  46. ^ Paypal.com
  47. ^ Bepress.com
  48. ^ Margaret Jane Radin et al., Internet Commerce The Emerging Legal Framework 1174-1175 Foundation Press (2d ed. 2006)
  49. ^ Margaret Jane Radin et al., Internet Commerce The Emerging Legal Framework 1176 Foundation Press (2d ed. 2006)
  50. ^ [3] The New York Times, India’s Central Bank Stops Some PayPal Services, by Heather Timmons and Claire Cain Miller, February 10, 2010
  51. ^ [4] Certificates of Authorisation issued by the Reserve Bank of India under the Payment and Settlement Systems Act, 2007 for Setting up and Operating Payment System in India
  52. ^ Margaret Jane Radin et al., Internet Commerce The Emerging Legal Framework 1189-1190 Foundation Press (2d ed. 2006)
  53. ^ Margaret Jane Radin et al., Internet Commerce The Emerging Legal Framework 1188 Foundation Press (2d ed. 2006)
  54. ^ Security Center
  55. ^ Wired News
  56. ^ E-Commerce News: Security: Feds Investigating Fraudulent Katrina-Related Web Sites
  57. ^ Youtube video of news report on eBay and PayPal aired March 2008 on an Australian news TV show called Today Tonight.
  58. ^ "AboutPayPal.com Website". 2008-04-23.
  59. ^ Charles Wolrich (2005-03-08). "Special Report:Top Corporate Hate Web Sites". Forbes Magazine.
  60. ^ "Draft Notice in respect of a notification lodged by eBay International A.G." Australian Competition and Consumer Commission. 2008-06-12. Retrieved 2008-07-03.
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  63. ^ http://www.theregister.co.uk/2010/03/10/cryptome_paypal/
  64. ^ http://www.theregister.co.uk/2010/03/16/cryptome_paypal/
  65. ^ "CertCo Drops PayPal Patent Suit". 2008-04-23.
  66. ^ "Settlement Agreement" (PDF). 2004-06-11.
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  68. ^ "Stamps.com Asserts Breach of Contract Claim Against PayPal and eBay". 2008-04-23.
  69. ^ "Comb v. PayPal Inc". 2007-01-21.
  70. ^ "Internet: PayPal Sues Bank One Over Patent Infringement". 2008-04-23.
  71. ^ Festa, Paul (2008-04-23). "AT&T sues eBay, PayPal over patent".
  72. ^ "Spitzer Obtains Agreement With E-Payment Service". 2008-04-23. Archived from the original on a date that you can find on the archiveurl which makes requiring this field seem entirely nonsensical to me. {{cite web}}: Check date values in: |archivedate= (help)
  73. ^ Justia.com

External links

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