Reimbursement from PayPal turned out to be not for all

September 2, 2008 - 10:51am | News | Payment systems |
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Last weeks PayPal was under observation of the public in light of the bankruptcy of an eBay seller EBS International. The statement of the company authorities to refund all affected customers from a special fund was reported by many news agencies. Later the company failed to redeem its promises.

Buyers relied on the regulations accepted in the policy of PayPal as well as on the claims of Andrew Pipolo, PayPal managing director. Thus according to one of the company principles PayPal would tap into a seller's account to reimburse a buyer when goods purchased were not delivered. In addition to this PayPal along with its parent company eBay made repeated proclamations that people who paid via PayPal would be eligible for up to $20,000 in buyer protection should they fail to receive their items. To crown it all Mr Pipolo repeatedly stated that the special fund would reimburse the buyers. This way PayPal successfully put anxious buyers at ease. Yet a number of victims failed to be paid.

Robert Vandermeer, spokesman for a group of eBay members seeking recourse for all the victims which noted that in case PayPal could not recover buyers’ money from the seller they wouldn’t see any protection.

In response to this remark spokesperson Daniel Feiler and PayPal spokesman Kelly Stevens stated that such a view was entirely wrong as the funds came from PayPal not the seller.

However, Mr Feiler’s reply does not correspond with the messages sent by PayPal to their customers which tried to get their promised reimbursement. One buyer who lost $3150.99 for a purchase from EBS was paid only $400 by PayPal and his trials to clarify the situation resulted in an e-mail from the company where PayPal representative said PayPal couldn't process his claim as it was unable to recover the funds from the seller while Mr Feiler stated the reverse.

Interestingly, but PayPal authorities’ conduct express their dignity and incredible belief that they didn’t mislead their customers and break their promises if of course the company team still remembers that it has ever made any promise.





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