ALBANY, New York (AP) -- The nation's largest online payment 
service, PayPal, is paying New York $150,000 in penalties after 
misrepresenting to consumers its policy on repayment when 
merchandise doesn't arrive, the state attorney general said 
Monday.

PayPal, which claims 40 million customers worldwide, had 
specifically stated that it provided the same rights and 
protections of a traditional credit card transaction, said 
Attorney General Eliot Spitzer. But consumers were often denied 
those rights, he said.

For example, consumers who didn't receive merchandise purchased 
through PayPal were often denied reimbursement from either PayPal 
or American Express or Discover credit cards. A spokeswoman for 
Spitzer said consumers complained they were being bounced between 
PayPal and their credit card companies and there was no prompt 
action.

The credit card firms agreed to properly credit consumers in an 
agreement with Spitzer late last year.

PayPal creates accounts for buyers and sellers using the 
Internet, including PayPal's parent, eBay, the Internet auction 
site. The service lets buyers and sellers exchange money through 
e-mail.

Besides the penalties, PayPal will pay New York state the 
investigation costs. The online payment service also will clearly 
describe consumer rights including conditions or limitations on 
their rights and refund policies.

Without the agreement, consumers using their credit cards through 
"e-payment" systems like PayPal would lose their protections 
under the federal Fair Credit Billing Act and similar state laws.

"Protecting consumer rights in online transactions is the best 
way to establish and maintain confidence in electronic commerce," 
Spitzer said.

PayPal has clarified that it will investigate any claims about a 
deal as long as the complaint is made within 30 days of the 
purchase.

Our Service is a great alternative to Paypal. Not only do you get 
your own merchant account and the ability to accept credit cards 
real time on your website, but you can also process face to face 
or offline transactions. You can't do that with PayPal.

www.cmscreditcards.com even has better rates than PayPals 
standard program and you get your money in 48 hours directly into 
your Business Checking Account. No volume limits like Paypal.


Benefits to having your own merchant account and not a PayPal 
account:

 * No chance of PayPal freezing funds or holding money because 
   they don't understand your business. When you sign up for 
   an account with us, we underwrite your account so our banks 
   know exactly what you are doing therefore, lessening the 
   chance for you to have your funds held erroneously and 
   hampering your cash flow.

 * Merchant can take both online and offline orders at their 
   home, store, office, tradeshow, etc. You can't do that with 
   PayPal. With PayPal you can only take orders from your 
   website. Though we believe your website sales are important, 
   it is also important that you make sales face to face and 
   via other marketing methods.

 * Merchant gets funds automatically in 48 hours to bank 
   account of their choice.

 * With your own Merchant Account, your customers will not be 
   required to open up a PayPal account just to do business 
   with you.(This is a huge inconvenience to put your customers 
   through just to make a one time purchase from you.)

 * You can do recurring billing transactions for regular 
   customers. Automatically bill a customer $100 per week or 
   per month. You set it up once and don't have to worry about 
   it ever again.

 * Pay Pal does not make their phone number available to its 
   customers. Call our office anytime and you'll get a live 
   person during business hours.


Main Difference between Pay Pal and a Merchant account:

The main difference between Pay Pal and a merchant account is 
that funds are not processed through the merchants own merchant 
account. All transactions are processed through one or more large 
bank accounts that the merchant needs to access to get his funds. 
They are not directly deposited into the merchants checking 
account.

The accounts where these funds get pooled are typically too large 
to be FDIC insured. The method of clearing and settling 
transactions skirts the rules established by Visa and Mastercard 
as well as state and federal bank regulations.

For more information on how your business may benefit from 
accepting credit cards now. Click over to 
http://www.cmscreditcards.com
 

Scott Burke; President of iMAX Business Solutions in 
charge of sales, strategy, and execution and thus is 
responsible for managing all aspects of the company's 
marketing, communications, new accounts, and support. 
scott@cmscreditcards.com
http://www.cmscreditcards.com/