Paypal Fraud

EBay has paved the wave in this industry and being in a billion dollar industry making things happen to benefit consumers in many ways.[5]

Many off-ebay customers are not attracted towards PayPal because of the fee based revenue model.People mainly prefer free services.Even credit cards offer a interest free credit period in which money transfer/transaction can be done without paying any extra money.Paypal should also think on modifying its service on the similar lines.

Ebay is primarily service providers who connect the sellers and buyers by providing platform to sell and buy any goods.

However, if you have just been paying attention recently, then you will recognize that eBay has been in hot water according to Forbes, all due to the hacks that have occurred. An international hack was carried out, and in the process, almost 150 million customer accounts were accessed and possibly affected negatively. The biggest problem is that those accounts could include personal information such as shipping info, credit cards, PayPal accounts, and even more sensitive data.

PayPal is a system which customers can use to pay electronically and securely for goods over the Internet. Small, medium and corporate

This subject company in this case study is WoolEx Mills. The top management team at the Mills had to act fast to prevent the accusations charged upon them, so that they may venture deep into the United States market. In the process, they had to act in a way that will present the company’s financial statements; cash flows in a way that they did not show any suspicious fraudulent activities. The type of fraud in this case study is known as manipulation of accounts which involves the act of offering the accounts in the way they are not in reality.

Alipay’s core service is an escrow service which solves the concerns related to settlement risk between buyer and seller. In this system, after a buyer commits himself/herself to an online transaction, his/her payment is held in an Alipay account until he receives the product ordered. After the product is received the buyer notifies Alipay and the payment is then forwarded on to the seller. As of December 2006, Alipay had 33 million registered users. (Source: “Alipay - 33 Million Registered Users,” www.imnewswatch.com, February 5, 2007) PayPal was a leading online payment company purchased by eBay in mid-2002. In June 2007, PayPal had 143 million user accounts across the world. Through PayPal, individuals and businesses could send or receive money over the Internet. PayPal supported payments in US Dollars, Canadian Dollars, Australian Dollars, Euros, Pounds Sterling, and Japanese Yen. Buyers could also pay for their online purchases on various e-commerce websites and auction sites like eBay using the balance in their PayPal account. Though this mode of transaction was quick, there were also a number of complaints from disgruntled PayPal users. Most of the complaints were related to the dispute resolution procedures of PayPal. In eBay China, transaction fees used to be charged as a percentage of the value of completed sales. This ranged from RMB 10 for a sale worth RMB 500 to RMB 115 for one worth RMB 20,000 (Source: “EBay China

Many organizations have been in the news over the past few years due to accounting ethical breaches that have affected their customers, employees, and the general public. I searched the Internet to locate a story in the news that depicts an accounting ethical breach. I selected Krispy Kreme. I enjoy their hot donuts and was curious to learn more about how they played with the numbers. For some reason I always want to dig into the trickery behind the manipulation of financial statements.

Ever since the summer of last year, I have been selling virtual items on an online game for profit. I ran all of my transactions through Paypal. This allowed secure and instant transactions both for me and the customer. However, if they buyer feels they were scammed, they can initiate something called a "Charge-back". This is where they can open a claim with Paypal and have them look into the transaction for any malicious activity. On the 31st of August, I received about 8 charge-backs on Paypal.

Electronic commerce has been there for a long time now, and it is a practice that is practiced by peoples from Germany, France, and the US on a daily basis. Since its inception around 40 years ago, e-commerce has continued to grow as innovations, technologies and a lot of business reverting to the use of the e-commerce. The aspect of buying and selling of goods in the early 1960s was sluggish with the traditional way of mailing of documents being replaced with the Electronic Data Interchange (EDI), which would later pave a way to the electronic commerce. After the e-commerce, however, the practice was not more reliable as it still had many challenges (Tsolis, 2009). For instance, it was not easy for buyers to see products from the comfort of their homes and more so, the methods of accessing the information were limited.

PayPal acquires significant losses due to claims from consumers that merchants be inflicted with not performed or that their merchandise or services do not comply with the merchant 's explanation, whether those requests occur from merchant counterfeit or from an accidental failure to achieve by the merchant. PayPal search for to salvage such claims from the merchant, although may perhaps not be capable to salvage in full stipulation the merchant is disinclined or incapable to reimburse. PayPal as well acquires losses from claims with the intention of the consumer did not authorize the transactions, from consumer fraud, from invalid transmissions and use of consumers who contain closed bank accounts or retain insufficient funds in them to fulfill payments( EBay 10K) .

E-commerce is transactions conducted via electronic means such as the internet, email and SMS. It is considered to be one of the most important aspects of the internet to appear. As a result, people are able to exchange goods and services immediately regardless of their geographic location and time. More and more businesses conduct transactions on line, with some trading purely on-line thus reducing overheads and administrative costs.

As eBay expands into more foreign markets, eBay will have to further evolve and allow for a more country centralized execution of its policies and manager control. I can certainly see that in countries that have a high religious influence, such as the Muslim dominated hierarchy, religious dictates will control how eBay presents itself. In the Koran it states that you are not allowed to profit off another. This holds true in examples like banking. However in some democracies eBay is being stifled in its ability to require payments thru PayPal, as the book states an example of Australian government, curtailing eBay’s ability to require payment thru PayPal (Griffin, 2012). To further accommodate expansion into these diversified markets eBay will of course have to follow religious precepts, government regulations and allow for more targeted products. It would be unwise of eBay to allow many items that are permitted in democracies and free thinking countries to be purchased in a more conservative nation. In the conservative nations, the potential buyers can still buy off eBay USA. This type of targeted selling of their system has created eBay of Canada, eBay of USA, and eBay of Australian, eBay of Belgium and so on (whoweare). Because of eBay’s presence in over 30 countries, yet PayPal is only used in 16 countries,

The company eBay Inc. is an American multinational Internet consumer-to-consumer corporation. Founded in 1995 by Pierre Omidyar in San Jose, California, it is now a multi-billion dollar business with operations localized in over thirty countries including China and India. It’s main enterprise is eBay.com, an online auction and shopping website that allows people and businesses to buy and sell a broad variety of goods and services internationally. Millions of collectibles, décor, appliances, computers, furnishings, equipment, domain names, vehicles, services, intangibles and other miscellaneous items are listed, bought, or sold daily on eBay. Anything can be auctioned on the site as long as it is not illegal and does not violate the eBay’s Prohibited and Restricted Items policy.

Continue to provide the same benefits that so far only had the most publicity the competition as is the case of Google's checkout system mentioned in the book despite these if they provide card number and other information and ask you not to fill registration, these have a large following, so what we could do PayPal, is creating new marketing methods so you can drive more people to continue using this method to implement new promotions and additional benefits for both consumers and for traders, trying to always be the best and so their growth by having more sponsors such as eBay. You can also still use the method that a client if you make your payment via PayPal to be that the other does not is a good strategy so that they can create an account and thus also be known more among the people.