PayPal Will Double eBay's Anti-Fraud Insurance
Leading Online Payments Provider Will Match Paid Claims from Insurer of Top Online Auction House; Tightens Its Buyer Protection Policy
Palo Alto, Calif., Nov. 3, 2000 - In an important step for consumer protection on the Internet, PayPal (http://www.PayPal.com), the leading payment service for online auctions, today announced that it will effectively double the anti-fraud insurance offered by leading online auction site eBay, as part of a revision to the company's Buyer Protection Policy.
In the wake of a Federal Trade Commission announcement about Internet fraud in which online auctions were highlighted, PayPal's new policy is designed to increase consumer confidence in purchasing at online auctions. Under PayPal's revised Buyer Protection Policy, consumers who use PayPal 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," said PayPal Chairman Peter Thiel. "As the number one payment service for online auctions, it's in the interest of our customers for PayPal to offer additional protection to shoppers on eBay. As our business grows, we hope to be able to extend this supplemental guarantee to additional online marketplaces where PayPal is used."
PayPal allows users to send and receive money instantly and securely on the Internet, funded from bank accounts or credit cards. The first and largest Internet-based payment service, PayPal has more than 4.2 million users worldwide.
Beyond the supplemental anti-fraud insurance the service will now offer its users who shop on eBay, PayPal also announced that it 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. PayPal pledged to swiftly return all recovered funds to any defrauded user. In order to prevent "double-collecting" of insurance and to deter high-dollar fraud attempts, however, the company also announced that it was suspending its guarantee program of full reimbursement (up to $5000) for transactions among qualified users of its network.
About PayPal
PayPal is the instant and secure online payment service that allows people and businesses to send and receive money by email. With more than 4.25 million users, PayPal is the world's first and largest Web-based payment network, and the #1 financial site on the Internet, according to PC Data Online. PayPal is the preferred payment service for online auctions and online community and group Web sites. Free to consumers, PayPal can be used from PCs or Web-enabled mobile phones.
A privately held company headquartered in Palo Alto, Calif., PayPal was recently named one of the 50 Most Important Private Companies in the World by Red Herring, one of the Top 25 New Companies by Fortune Small Business, and a Forbes Favorite Website in the magazine's latest "Best of the Web" issue. For more information, please visit www.PayPal.com.
PayPal and the PayPal logo are registered trademarks of X.com, provider of the PayPal service. PayPal is not affiliated with eBay. All other trademarks are the property of their respective owners.