‘PayPal Punished: What Does That Mean for Ecommerce?’ – HubSpot
Morgan Jacobson says, “What is an ecommerce company to do when one of their “most trusted” payment options gets a big slap on the wrist from the US Treasury? Most are learning right now, though data isn’t yet available to report. So, what exactly happened, and how might it affect your small to medium ecommerce business?
A $7.7M Slap Hurts
Apparently, PayPal disregarded US sanctions and allowed money transfers to forbidden accounts, including some linked to Cuba, Iran, and terrorist organizations. The Treasury Department said in a statement, “PayPal’s management demonstrated reckless disregard for US economic sanctions requirements in deciding to operate a payment system without implementing appropriate controls.”
Fair enough, right? When people send money through PayPal, the company should know who’s spending it and where it’s going”.
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