PayPal promises to overhaul overbearing fraud filters in the coming months

Jan 22, 2013
3

PayPal is the biggest, most popular, and most widely used online payment processor in the world today. The problem with PayPal for many users is that company has a history of incredibly overreaching fraud filters that ensnare legitimate users who are doing no wrong, leaving them unable to access their money. PayPal put fraud filters in place to be sure criminals weren't abusing its digital payment system.

If legitimate users were caught by the fraud filters proving that you weren't a scammer involved significant amounts of time and paperwork. PayPal has recently announced that it will be rolling out a major overhaul to its system over the next several months. The company isn't offering much in the way of details on what exactly it will be doing.

PayPal senior director of communications Anuj Nayar promises, "these are aggressive changes." Nayar wouldn't go into specifics reports CNN, but did note that transparency will be a major focus. He promises that PayPal will be clearer about how people can get their frozen funds and explaining why the freeze actions were taken.

Anyone who dealt with PayPal in a frozen fund situation knows that typically the only information you're given is that fraud was suspected. PayPal freezes funds and accounts for 21 days if they think there's a fraud risk. PayPal can also extend that for up to 180 days. Often one of the requests by PayPal to be able to unlock the frozen funds would include several months worth of sales records. However not all legitimate sellers keep sales records.

[via CNN]


Must Read Bits & Bytes