# PayPal Has to Pay $25 Million for Being Sketchy as Hell. $15,000,000 in user refunds plus $10,000,00



## MannDude (May 20, 2015)

Ha: http://gizmodo.com/paypal-has-to-pay-25-million-for-being-sketchy-as-hell-1705630163

Check the link for more information.


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## ChrisM (May 20, 2015)

Sweet! $25Million isn't enough though.


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## MannDude (May 20, 2015)

I actually still have unclaimed property from PayPal that was around $180 fro 2010. I filed with the State but need to follow up on it. I'll check back in a month or two to see if PayPal has paid me additional money to an old address or something again. I was never able to determine what the $180~ was for, as it never entered my actual PayPal account so I suspect I was unknowingly the recipient of a similar thing in the past.


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## joepie91 (May 20, 2015)

About time.


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## tk-hassan (May 20, 2015)

It is actually rather surprising to me as for me it is considered as the most reliable online money tranfer method.


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## KwiceroLTD (May 20, 2015)

*claps*

Finally.


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## DomainBop (May 20, 2015)

some perspective:

$25M is 0.32% of PayPal's annual (2014) revenues of $7.9B.

The median U.S. household income is $52,047 so a 0.32% fine would be $166.

TL;DR #1 a $166 fine probably wouldn't be enough to make a lawbreaking citizen change their ways, and a $25 million fine is unlikely to make a lawbreaking corporation change its ways

TL;DR #2 the fines that the government has handed out to companies in the financial industry in recent years generate favorable publicity for politicians but that is all they do

.


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## rds100 (May 20, 2015)

DomainBop said:


> $25M is 0.32% of PayPal's annual (2014) revenues of $7.9B.
> 
> .


How is revenue calculated for payment processors?

If i send you $100 via paypal you will get $96.30 ($3.70 would be paypal fees).

In this case is paypal's revenue from this transaction $100 or $3.70?


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## DomainBop (May 20, 2015)

rds100 said:


> How is revenue calculated for payment processors?
> 
> If i send you $100 via paypal you will get $96.30 ($3.70 would be paypal fees).
> 
> In this case is paypal's revenue from this transaction $100 or $3.70?


PayPal's revenues from that transaction would be $3.70.  The $100 would be accounted for as "total payments volume"  (PayPal's 2014 total payments volume was $235 billion)

slight correction from my previous post: PayPals's media site lists 2014 revenues as $8.03B not $7.9B https://www.paypal-media.com/assets/pdf/fact_sheet/PayPal_Q1_2015_Fast_Facts.pdf


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## drmike (May 20, 2015)

This isn't even a slap on the wrist.

I find it interesting after all these years of PayPal doing rotten things that they are slapped.  They should have been royally punted a decade ago for bad behavior.   Lately they seem to have been playing games not on the one off account and normal transactions, but with their loans, lending and other financial imitating products.  Unsure why folks are jumping at PayPal for those other than traditional lenders continue to operate more like a cult or invitation-only group.

It's interesting timing for this suit and settlement.   Cause real soon Ebay and PayPal are to become non-attached independent companies.  I think that separation might have had something to do with this lawsuit.   Now if the same do-good group would sue Ebay for the mountains of import fake products, rampant fraud, etc.


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## cociu (May 21, 2015)

its a start no ?


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## drmike (May 21, 2015)

cociu said:


> its a start no ?


True it's better than nothing.   Not really impactful though.    Like fining a guy $1 for criminal misdeeds.   Oh yeah that $1 will stop him from being a hoodlum.... You go teach him crime doesn't pay, so harsh.


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## mitgib (May 23, 2015)

drmike said:


> True it's better than nothing.   Not really impactful though.    Like fining a guy $1 for criminal misdeeds.   Oh yeah that $1 will stop him from being a hoodlum.... You go teach him crime doesn't pay, so harsh.


As an eBay shareholder, I am quite pleased


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## cociu (May 24, 2015)

i am glad to see something like this , but is verry verry little import ...


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