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I have a strong dislike of Paypal, but it's warranted. Not over things like this (I had my own donation account locked once, and a quick email exchange got it unlocked with no problems).

I used paypal because I thought it provided me some protection.

I purchased web hosting using my paypal account. Then one day, the company doing the hosting folded up and disappeared. Since I had just prepaid a month of service, I filed a claim with paypal for services not received.

12 hours later, they had completed their research and determined that they would not proceed to charge this back against the merchant. No further details provided to me, and case was closed.

It seems to me that if a company is advertising itself as protecting its customers (which are both merchants and purchasers), then it should do so. In my particular case, I provided ample documentation to show that a) I had paid the charge and b) the company I paid closed up shop and had no intention of providing the service I paid for. Yet without explanation or transparency, they were able to shut my case down. I later learned I"m far from alone in this experience.

So perhaps the dislike of paypal for the reason in the article isn't warranted - but they have a long history of problems completely unrelated. That's what happens when you want to have all the profits associated with being a credit card processor, and yet be constrained by none of the regulations.



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