America regulations for PayPal

Preface.
  China sellers often because of the high Paypal rate, high fees and relatively cumbersome procedures for the withdrawal and step back. In fact, PayPal represents USA credit system idea: the seller strictly limited, fully protect the interests of buyers, as far as possible to eliminate the possibility of fraud, fraud and financial crime. Construction Chinese credit system is not mature, so in the use of the inevitable conflict of PayPal idea, I hope this article will help to understand the Paypal extremely law credit background in the export of people.
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  (a) the basic principle of PayPal payment
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  through PayPal payer to pay a sum of money to the business or the payee, can be divided into the following steps:
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  1. as long as there is an e-mail address, the payer can open PayPal account login, the user through the verification, and to provide credit card or bank account information, increase the amount, will be a certain amount of money from the account registration account (such as credit card) is transferred to the PayPal account.
  2. when the payer payment program start to third people, you must enter the PayPal account, specify a particular amount, and provide the email account for PayPal.
  3 then PayPal to businesses or beneficiary send email, notify the waiting to receive or transfer payments.
  4 such as businessmen or the payee is PayPal users, their decision to accept, money is transferred to the designated payee.
  5 if the merchant or the payee payee account no PayPal, in PayPal e-mail content indication line station into Webpage have registered a PayPal account, the recipient can choose to get money into the check to the specified location, to the person's credit card account or into another bank account.
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  process can be seen from the above, if the payee is already a PayPal user, then the money from his own PayPal account, if the payee has no PayPal account, the website will send a letter of notification email, guide the payee to PayPal website to register a new account. So, also have this model called PayPal sales is a "mail virus" business development mode, which makes the PayPal more and more land market.
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  general view, this payment is easy as funds are remitted through e-mail (fund-in) to (fund-out), the payment process between the payer and payee. In fact, through the PayPal email only play the "notice" role, while the PayPal service is only for the user's credit card account to borrow, credit record.
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  briefly, from the formal point of view, the basic model of PayPal has provided a "e-mail" payment method. In essence, PayPal is based on the platform for virtual bank account and transfer system, the transfer of funds in the payer's bank account, PayPal account and the account of the payee, and email to transfer information and inform the role, the operation cannot do without bank accounts, the electronic funds transfer and credit card and other traditional payment tools. (no registered PayPal account payee, send an email to the recipient for PayPal and a marketing role.)
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  features in this model, network transactions beneficiary (seller) just tell the drawee (buyer) their email address, which in the PayPal user name, so the payer can through the PayPal to complete the payment. PayPal user amount and the amount received first of all is the PayPal book of changes, the user can pay through PayPal account instruction, withdrawals or into bank deposits. Can also issue the instruction, make PayPal to send the check, or through the transfer funds allocated to the user specified bank account. Payer and payee may open accounts in two different banks, can also be two countries or regions far away from the bank, but as long as they are all PayPal users, you can reduce the cross bank transfer complex between, between transnational and trans regional. No doubt this one-stop convenience as well as email address as the PayPal account method greatly depends on different from the traditional to the financial system transactions and transfer mode.
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  in addition, for payment security, and firewall Paypal some of the same, the payee and the user's credit card data to build a security barrier. Before shopping with a credit card, need to enter the number provided in store payment page, so of course very convenient, but if the site did not realize the encryption transmission information, or some fake website (spoof site) malicious fraud information transaction, security will be big discounts, credit card information will be site staff or other what people get. Now it is different, transfer or payment for the business through the PayPal, just enter the PayPal username and password. This is more than a layer of password protection, and the payment page provided by PayPal, rather than from the online store. Finally complete the payment process of encryption in the PayPal station, no third party (including online store) access to the user's bank account or Credit Card Cardholder's personal data.
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  (two) PayPal, the user, the bank and its legal relationship
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  said the relationship between PayPal and users, it is necessary to PayPal's user agreement to do a simple introduction, in the early days of PayPal's user agreement, can see "PayPal will pool your funds together with funds from other Users, and will place those funds in accounts at one or more FDIC-insured banks (" Pooled Accounts "You agree that any). Earnings on the Pooled Accounts will be the property of PayPal, and you will not receive interest or other earnings on the funds that PayPal handles as your agent.", that is to say PayPal users can be stored together in the capital account Federal Deposit Insurance Corporation insurance bank (FDIC-insured banks), by an early user agreement, users agree that any revenue generated by the PayPal account to PayPal, users will not receive any interest or other earnings because of the money transfer by PayPal.
  at present (as of 2005 June) of the user agreement (America), we can see, "PayPal acts as a facilitator to help you accept payments from and make payments to third parties. We act as your agent based upon your direction and your requests to use our Services that require us to perform tasks on your behalf. PayPal will at all times hold your funds separate from its corporate funds, will not use your funds for its operating expenses or any other corporate purposes, and will not voluntarily make funds available to its creditors in the event of bankruptcy or for any other purpose. You acknowledge that (I) PayPal is not a bank and the Service is a payment processing service rather than a banking service, and (II) PayPal is not acting as a trustee, fiduciary or escrow with respect to your funds, but is acting only as an agent and custodian"
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  "You agree that you will not receive interest or other earnings on the funds that PayPal handles as your agent. PayPal will also not receive interest on those funds, but may receive a reduction in fees or expenses charged for banking services by the banks that hold your funds"
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  PayPal strictly distinguish user their own funds and its own funds, not the funds for running the company or other purposes, nor in the case of bankruptcy, or for any other purpose to make funds available to creditors. This shows that, at present, PayPal will not use the user of funds earn interest income, and the user of funds in the absence of added PayPal provide another service "money market fund" plan, will be deposited into the bank by Federal Deposit Insurance Corporation (FDIC-insured banks) in non interest bearing account opening.
  PayPal in user agreement claimed to be the user agent (agent), is to help the user to accept payment from the third party and give the agency payment to the third party. And in the user agreement, let the user explicitly (1) PayPal itself is not a bank, the services provided to users is the payment processing services, rather than a bank business; (2) for users of funds, PayPal is not a property to the trustee, the trustee, or when certain conditions mature later transferred to the transferee the third party, but as a user agent and fund managers.
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  users of PayPal protocol based on , we can think, PayPal is registered as a user of the buyers or sellers of the user interface provides a network payment processing the drawee, payee and. It is said that in the user acceptance of the user agreement, between PayPal and the user has to provide the online payment service and acceptance of the contract relation network payment services.
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  in PayPal (USA) the user agreement, PayPal says he is as a user agent and user fund managers in the process of the whole service, we believe that the legal issues involving PayPal can be embodied in the following aspects: and the relationship, between the user and the bank (credit card). The relationship between the legal status, payment security, the PayPal confirmation.
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The relationship between one of the PayPal and user
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  in PayPal (American) user agreement also mentioned that "PayPal acts as a payment service provider by creating, hosting, maintaining and providing relationship between the broad our Service to you via the Internet. We do not have any control over the products or services that are paid for with our Service. We cannot ensure that a buyer or a seller you are dealing with will actually complete the transaction." where you can see the front of a clear PayPal and users post, also made it clear that his as Internet payment service providers, does not guarantee between buyers and sellers really fully fulfill the transaction.
  we think, here PayPal America user agreement to define themselves as agency, that is PayPal America is based on user instructions and requirements, with the name of the user to complete online payment.
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  can says the Agency (AGENT) is a broad concept which belongs to the Anglo American law. According to the American law of agency theory, the agency is a kind of trustee fiduciary relationship in which one party agrees to, in the supervision of another party for the interests of the other party and the implementation of certain behavior. Although the agency doesn't necessarily have to be based on the contract relationship, but basically is a consensus: as I that he is willing to agent to represent him as certain behavior, and bear the consequences; agents agree on my behalf and behavior, and is willing to accept my instructions or control. This Agreement may be express, but also from the behaviour of the parties or the inferred context.
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  in PayPal as a user agent network payment related matters, the responsibility of the PayPal in its statement in the user agreement and consent based on, in the form of mail to fulfill the payment notice and payment obligation to notify users authorized. Of course, as agent and fund management person (the trustee) on the user's personal information, account information should have a certain confidentiality obligations, and ensure the safety and smoothness of network payment. PayPal noted in the user agreement, not the funds will be used for purposes other companies, and in the bankruptcy case, not the user money independently to creditors.
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  PayPal Bank (credit card) and the relationship between
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  consider this, PayPal provides a network payment and capital custody services received for its user agreement customers, on the other hand, because of their own is not a bank, must rely on the credit card organization and the banking system to build their own service framework. PayPal is a single for banks and credit card organization, namely the user via credit card or bank account funds into the PayPal account. PayPal needs and bank (credit card) between a service agreement, clearly the rights and obligations of both parties, mainly has following several aspects to consider:
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  1 on consumer credit card or bank account certification;
  2 credit card or bank in accordance with the PayPal (user command) required to make funds transfers;
  3 for fraud and refund may be required to confirm.
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  can be said that in the face of the user, PayPal is the credit card and the bank has done further refinement and virtual network in the payment process, is a kind of extension, but also as a credit card and bank business received unilateral. This will cause PayPal and credit card organization and the combination of banking, such as PayPal must often adjust relevant policies so that the card organizations and their credit rules, and the relevant laws and regulations of credit card is consistent and coordinated.
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  payment security problem is the user and the PayPal are very concerned about the problem, although the use of e-mail address as the PayPal account, and use simple enforce password as payment orders and instructions, to avoid the credit card information and other bank account information to be leaked the risk business process. But in the practice of PayPal, will still be a network integrity and security issues, as well as in the service of privacy and consumer protection issues involved.
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  therefore, PayPal introduced a number of policies and measures to ensure the security of online payment. For example:
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  verify account
  users can select one of the registered three account for payment. Individual account (Personal Account), a standard account (Premier Account) and commercial account (Business Account), in determining the choice of an account, users pay before the need to bind a bank account or credit card, at this time, PayPal verification on credit card accounts and bank accounts, effectiveness and user identity. Take "Random Deposit" approach to USA user, when the user registration, PayPal to the account of random into two small deposits, after 2-3 days, the user can read the two deposits amount and as the activation code, complete the verification process on the PayPal page. Another is in American overseas customers, these customers in the account before, need to PayPal to pay a sum of US $1.95, then the user will be in the credit card statement, bank account statement and online access to a 4 bit code, if the customer in the PayPal page correctly input the 4 a code, the client's account will be activated, the next payment, the sum of US $1.95 will be PayPal return.
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  trade protection
  relationship between initial PayPal relies on the eBay continue to expand its business based on PayPal, set up a special series for the security of online transactions payment policy, the buyer complaint policy, the seller protection policy, the buyer protection policy and refund guarantee policy. The buyer complaint policy and the protection policy, referred to PayPal on the seller fails to delivery, goods and describe received obviously does not meet the conditions, provide a refund guarantee. In addition to the Federal Reserve for the "E rule" (Note 1), if the money by credit card is inserted, and the unauthorized, users can enjoy the issuers offering refunds.
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  (three) USA financial legal environment PayPal
  because of innovative PayPal business, it has put forward a lot of challenges and thinking of the relevant laws and policies. PayPal America user agreement repeatedly emphasized that he was not running bank business, which for the PayPal to expand their business is very important, otherwise you can imagine PayPal as a non bank institutions and the similar bank funds transfer business would be in a variety of banking financial institutions, laws and regulations. PayPal in the user agreement and the related court cases has been claimed to be the agent (AGENT), and Internet payment service provider. Of course, while providing network payment for the user, because the large accumulation of capital, resulting in PayPal have a certain amount of capital storage, which makes the PayPal with the characteristics of some banks, to achieve some business functions such as bank, transfer, extraction and payment. To further understand the legal status of PayPal, also from PayPal to get some inspiration in American legal environment and the lawsuit encountered in PayPal in recent years:
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  USA related legal environment
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  in American specification of PayPal business is mainly divided into two levels of federal and state.
Electronic funds transfer method   America Congress "(" Electronic Fund Transfer Act) (Note 2) and the Fed issued for execution of rules that apply to any form of transfer of funds, the banking institutions bill service to provide non special electronic payment provisions, provide consumer protection of some of the current discussion, in the study, often think that PayPal should be affected by the electronic funds transfer law and E rules deal bear, for without the consumer empowerment. In addition to the "American electronic funds transfer act", 1989 August American "Uniform Law Commission" for commercial funds transfer jointly formulated the "Uniform Commercial Code" part 4A, to control the large commercial electronic funds transfer, the main focus of the bank, but not limited to electronic funds transfer this way, at present, America "Uniform Commercial Code" has become America jurisdiction of large value electronic funds transfer is the most important legal.
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  also America Federal Deposit Insurance Corporation in an opinion on this in the evaluation of PayPal, "in the service of PayPal, its not visible to treatment or who have". PayPal takes full advantage of the above statement, to identify their business is different from the traditional bank, so as to avoid a lot of the financial and banking policies and regulations on the constraint.
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  PayPal for each state in the USA smoothly business, trying to get money transfer business license, and strive to persuade states is not itself a bank, do not engage in banking business, is not regulated by the banking and financial law. During the period, the received New York, Idaho, Louisiana and California, questions, and finally got the money transmitter license (Money Transmitter License), but all these licenses are only in the state level, there is not a federal unified license, which is a use of the Internet to enforce payment business of the company is not worth mentioning.
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  of course, PayPal also faces a number of online fraud, especially through the credit card transaction, if the cardholder disputes and disputes on the transaction, PayPal will be on the unauthorized payment complaints to refund, but at the same time, because of the credit card transactions occupy PayPal entire network payment of more than 50%, so the PayPal have to take more stringent measures to combat fraud. When is it that an account are suspected of fraud, PayPal began to more controversial measures adopted to limit the user's account, so inevitably leads to a good record of some account is wrong, causing the user to PayPal discontent escalated into a series of PayPal proceedings.