PayPal, the online payment gateway and money management tool, has announced plans to overhaul its fraud filtering system in the coming months.
The changes are designed to address the many problems legitimate businesses, charities and users have experienced when using PayPal’s services. Often, these organizations get flagged as fraudulent, causing PayPal to freeze their account and any funds coming in or out.
While specific details of the improvements have not yet been announced, PayPal’s senior director of communications, Anuj Nayar, has said they will be significant.
“These are not minor; these are aggressive changes,” Nayar said. “This is a fundamental shift in our business operations.”
Though PayPal’s current policies and filters are designed to protect most users from fraudulent behavior, on occasion, legitimate operations are caught in the net and flagged as a fraud risk. When this happens, a user’s funds can be frozen anywhere from 21 days to 180 days while PayPal investigates.
Once frozen, users are also asked to provide sales documentation to verify their legitimacy which is often difficult for charities, new sellers or other types of businesses. In many cases, the entire process can take several months to complete. Meanwhile, the user’s funds remain frozen and unreachable in their PayPal account.
Nayar said the coming changes will address these issues.
“We want to be clear about how people can get out of the [frozen funds] situation,” Nayar said. “We need to get better about helping people, or explaining why actions are being taken.”
As PayPal has several fraud filters and security systems in place, Nayar said the improvements will take some time to complete.
- Best Merchant Account Providers
- Compare Rates and Fees
- Best Credit Card Processing Apps: iPhone | Android
- How to Get Out of a Merchant Account Contract
- Why Credit Card Processors Hold Funds
- How to Report Bad Merchant Account Providers
- How to Get the Services You Need Without Getting Scammed
|Top Providers By Specialty|
|General Processing (Retail, etc.)|
Getting paid to re-write this page? Click here to earn a reward.
Copyright © CardPaymentOptions.com (Digital Fingerprint: 0d38c6720f0d78a701b74d58653af608)