Paypal vs. Merchant Account
Copyright © 2006-2008 Scott Burke
ALBANY, New York (AP) — The nation’s largest online payment service, PayPal, is paying New York $150,000 in penalties after misrepresenting to consumers its policy on repayment when merchandise doesn’t arrive, the state attorney general said Monday.
PayPal, which claims 40 million customers worldwide, had specifically stated that it provided the same rights and protections of a traditional credit card transaction, said
Attorney General Eliot Spitzer. But consumers were often denied those rights, he said.
For example, consumers who didn’t receive merchandise purchased through PayPal were often denied reimbursement from either PayPal or American Express or Discover credit cards. A spokeswoman for Spitzer said consumers complained they were being bounced between PayPal and their credit card companies and there was no prompt action.
The credit card firms agreed to properly credit consumers in an agreement with Spitzer late last year.
PayPal creates accounts for buyers and sellers using the Internet, including PayPal’s parent, eBay, the Internet auction site. The service lets buyers and sellers exchange money through e-mail.
Besides the penalties, PayPal will pay New York state the investigation costs. The online payment service also will clearly describe consumer rights including conditions or limitations on their rights and refund policies.
Without the agreement, consumers using their credit cards through “e-payment” systems like PayPal would lose their protections under the federal Fair Credit Billing Act and similar state laws.
“Protecting consumer rights in online transactions is the best way to establish and maintain confidence in electronic commerce,” Spitzer said.
PayPal has clarified that it will investigate any claims about a deal as long as the complaint is made within 30 days of the purchase.
Our Service is a great alternative to Paypal. Not only do you get your own merchant account and the ability to accept credit cards real time on your website, but you can also process face to face or offline transactions. You can’t do that with PayPal.
www.cmscreditcards.com even has better rates than PayPals standard program and you get your money in 48 hours directly into your Business Checking Account. No volume limits like Paypal.
Benefits to having your own merchant account and not a PayPal
account:
Main Difference between Pay Pal and a Merchant account:The main difference between Pay Pal and a merchant account is that funds are not processed through the merchants own merchant account. All transactions are processed through one or more large bank accounts that the merchant needs to access to get his funds. They are not directly deposited into the merchants checking account.The accounts where these funds get pooled are typically too large to be FDIC insured. The method of clearing and settling transactions skirts the rules established by Visa and Mastercard as well as state and federal bank regulations.
For more information on how your business may benefit from accepting credit cards now. Click over to http://www.cmscreditcards.com
About The Author:
Scott Burke, President of MAXX Business Solutions is committed to making the merchant experience a pleasure and one that will build long-lasting business relationships. MAXX works as a trusted partner in merchant account credit card processing and strives to provide merchants with the best support, the best rates, and the best service in the industry. http://www.cmscreditcards.com/payment-processing.html |
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April 22nd, 2008 at 5:40 am
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