PayPal settles N.Y. probe, says others underway

I have used the online payment service PayPal successfully from time to time. However, I know that many are not happy. Let me clarify – when I say “many”, PayPal serves thousands (millions?) of customers, so if only 2% are not happy those are large numbers of unhappy customers but only a small percentage of all their customers.
For “another” view of PayPal check out
In any case, USA Today is reporting that Online payment service PayPal has agreed to pay $150,000 to settle charges that it misled customers who expected refunds when purchases went awry, New York Attorney General Eliot Spitzer said Monday.
The settlement with Spitzer’s office clarifies that consumers should not expect the same level of fraud protection that credit-card companies provide, a Spitzer aide said.
The rate of fraudulent PayPal transactions is less than one-half of one percent, eBay has said. But due to the sheer volume it handles ó more than $12.2 billion last year, according to eBay’s annual report ó the online service is frequently caught in the middle of disputes. (full story)