24 February 2018
Visit www.capgemini.com/worldreports

Fraud forces PayPal to suspend money-back pledge

06 November 2000  |  2694 views  |  0 pda  folding - old

Online payments operator PayPal is suspending a $5000 reimbursement pledge for defaulted transactions in a bid to crack down on fraudulent misuse of the scheme.

The scrapping of the scheme is sweetened by a promise to double the anti-fraud insurance offered by leading online auction site eBay. PayPal says this new policy is aimed at increasing consumer confidence in purchasing at online auctions.

Under the new scheme, consumers who use the Californian company's person-to-person e-mail transaction service to purchase through eBay and fail to receive the item can receive up to $200 from PayPal in addition to the maximum $200 award from eBay's own insurance policy with Lloyd's of London.

"Confidence in the online marketplace is critical to the success of the Internet," says PayPal chairman Peter Thiel. "We hope to be able to extend this supplemental guarantee to additional online marketplaces where PayPal is used."

He says that PayPal's decision to suspend its guarantee programme of full reimbursement (up to $5000) for transactions among qualified users of its network follows incidences of "double-collecting" of insurance payments and evidence that the scheme was attracting professional high-dollar fraudsters.

Thiel say PayPal will continue to aggressively investigate any allegation of use of its service to commit fraud, and to take appropriate steps to restrict the accounts of users with multiple complaints against them and refer them to law enforcement.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Citi launches person-to-person payments system

Citi launches person-to-person payments system

01 November 2000  |  3882 views  |  0 comments

Related company news


Related blogs

Create a blog about this story (membership required)
visit www.swift.com/your-needs/instant-paymentsVisit www.vasco.comvisit www.nextgenbanking.co.uk

Top topics

Most viewed Most shared
Ripple makes new connections to emerging marketsRipple makes new connections to emerging m...
11730 views comments | 16 tweets | 10 linkedin
hands typing furiouslySome Interesting Applications Of The Inter...
10309 views 3 | 9 tweets | 1 linkedin
Basel Committee outlines disruptive fintech scenariosBasel Committee outlines disruptive fintec...
8503 views comments | 15 tweets | 26 linkedin
Investment Association sets up fintech accelerator for asset managersInvestment Association sets up fintech acc...
8038 views comments | 19 tweets | 10 linkedin
R3 creates Legal Centre of Excellence for blockchain technolgyR3 creates Legal Centre of Excellence for...
7730 views comments | 10 tweets | 14 linkedin