« Fixed Mechanism for Attaching Comments to Stories | Main | ChexSystems, National Database of Bad Check Transactions, Profiled in WSJ »

WSJ: PayPal Steps Up Security to Reduce Fraud

The Wall Street Journal is reporting that PayPal will offer its customers reimbursement if they are defrauded by vendors that PayPal has verified.

If you haven't heard of PayPal before, perhaps that's because you do not participate in on-line auctions very much. PayPal is referred to as a "person-to-person payment system" that allows a buyer to easily pay an individual seller of goods or services for an on-line transaction.

The primary innovation in person-to-person payment systems is that a seller can accept most modern forms of payment, including credit cards, with substantially less of a banking relationship than has traditionally been required by banks offering credit card merchant accounts. Of course, this feature has also made these systems a vehicle for widespread fraud. It will be interesting to see if this new service offering from PayPal makes their service less fraud prone or more acceptible to reticent consumers.

Post a comment

(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)


CTDATA Venutures (CTDATA) develops Internet and Intranet applications for corporations and non profit organizations. Our services include:

  • Consulting services for Movable Type and TypePad-based publishing systems (visit our Weblog Improvement website for more information),
  • Financial services business process consulting,
  • Content management system and knowledge management system consulting,
  • Apache web server engineering and hosting,
  • MySQL, Sybase, and Microsoft SQL Server architecture and development,
  • SOAP, REST, and XML-RPC system architecture and programming, including Amazon Web Services and
  • Weblog publishing.
For more information, contact Dave Aiello by email at dave [at] daveaiello.com or call him at +1-267-352-4420.
Copyright © 1995-2010, CTDATA Ventures. All Rights Reserved.
Powered by
Movable Type 4.25