EcommerceBytes-NewsFlash, Number 167 - September 23, 2001 2 of 2
PayPal 'Strengthens' User Agreement
By Ina Steiner
1) To clarify that PayPal acts as a money transfer agent and custodian on your behalf, and that PayPal provides a payment processing service rather than a banking service; and
2) To describe PayPal's practice of safeguarding customer funds left in the PayPal system by placing the funds in an account at an FDIC-insured bank or in a highly-rated liquid security, and to make clear PayPal's legal commitment to that practice. As part of this commitment, PayPal will also continue its practice of holding customer funds in an account that is entirely separate from the general corporate accounts.
About the author:
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to firstname.lastname@example.org.
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