posted on November 15, 2005 07:40:25 AM
Ten days ago, I tried to get cash from my PayPal account from an ATM machine before I went on vacation. The transaction was declined. I thought PayPal was having a minor glitch so I used another card. I got back from vacation and found a healthy balance in my PayPal account, I also found that several automatic payments using my debit card bounced (including my monthly Vendio fees). I asked Vendio to put the charge through again, knowing there is money to cover it. Then I called PayPal. They told me that a number of their MasterCards were 'compromised', including mine and so, on the advise of MasterCard, were immediately terminated. I can apply for a new one and expect it within 7 - 10 business days - a huge inconvenience. I asked why they didn't notify me. The rep replied they couldn't possibly notify the 10,000 - 20,000 cardholders affected. This is ludicrous! My banking sister informed me non-notification is in direct violation of banking regulations which took effect this summer, but I know if any of my bank-issued cards were compromised, I would have been notified immediately. In this age of electronic communication, notification should be no problem. I'm sure the real issue is that PayPal wants to keep this low profile and to h*ll with the problems it creates for its customers. PayPal- if you wanna be a bank - act like a bank or get out of the arena!
posted on November 15, 2005 08:40:19 AM
What a needless pain in the tuss! They should have notified you immediately. At least they should have monitored the suspects accounts for strange actively and notified the owners. There is NO excuse for that!
I don't know who you should contact because PAyPal is not a bank, but there has to be some government agency that needs to know about this. I think I would have to find a few reports too.
Start with the Steiners over at auctionbytes.com
And thanks for letting us know. I don't have a debit card. I don't trust them with my money and never leave more than $100 in my account.
Now take care of yourself. If any of your auto payments that were denied tried to charge you overdraft or late fees, contact Paypal and make them pay the fees. You should not be responsible for any fees due to their mistake.
When your ship comes in.... make sure you are willing to unload it.
posted on November 15, 2005 08:24:36 PM
Paypal isn't a bank though, I don't think they are really trying to be one, it's just that people are treating them like they are one! For me, paypal is a clearinghouse, that is all. Money gets transferred to a real bank on a regular basis. I even set up a special account for paypal transfers because that is how LITTLE I trust them with my money!
