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September 12, 2004

$500 fine for using PayPal for gambling, porn or unauthorized prescription drug sales

default — by TDavid @ 10:52 am PST

Sept 24, 2004 is the day. PayPal clearly wants to send a message to companies who still continue to use their service for processing payments for gambling, adult material and one more area of contention: unauthorized prescription drug sales.

PayPal, the online payments arm of eBay Inc. (Nasdaq:EBAY), on Friday said it will soon fine people up to $500 for uses related to gambling, adult content or services, and buying or selling prescription drugs from noncertified sellers.

If webmasters who do business in these areas have not already started using other services which do allow these type transactions, I’m sure this will provide some additional incentive, which seems to be PayPal’s plan. Or is it? Not unsurprisingly, some comments over at Techdirt are anti-PayPal over this move:

“Fine people $500? I think you mean steal $500 from people. This is prima facie evidence that they’re crooks.” - bbay

I bet sites like paypalsucks.com – that provides a forum for alternative places to Paypal — are going to be all over this news.

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