Legal Question in Technology Law in Illinois

When does an internet investment become contractual?

As a PayPal member I have used a debit card to pay for purchases on Ebay. This is the preferred method of payment for practically all sellers. That being I had to go into PayPal and disclose all necessary info in order to use my debit card. Recently, another PayPal member transferred funds into my member account (I say member because PayPal has all my bank information). Transfers of funds is a Free service. But PayPal claims that I am a Premier member and charged me fees on the monies transferred. I disputed this because if I had ''updated'' (as they claim) to Premier there had to have been some kind of conclusion or completion to seal this kind of investment. It is an investment because Premier is for business owers and monies in those accounts earn interest. A pitiful one, nonetheless. I am not a business. But if I had ''updated'' what sort of completion of this type must there have been in order for me to have become Premier? I signed nothing. There has never been any activity with PayPal for a year. I have nothing to prove there was an update. Is PayPal doing a juggling act? Where is the law in this kind of behavior?


Asked on 12/22/04, 10:22 am

1 Answer from Attorneys
Curt Handley, Esq. Law Office of Curt Handley

Re: When does an internet investment become contractual?

Unfortunately, PayPal did the same exact thing to me. When you apply for PayPal membership, there is a checkbox, somewhat inconspicuously placed, that asks if you wish to become a Premiere member. If you didn't intend to become a Premiere member, you can call them and they will refund the fees. However, they will do this only once. I know only because this happened to me and they refunded my fees. I have since become a Premiere member because a number of my clients pay with credit cards and you have to be a Premiere member. If you need to accept credit card payments, you will have to become a Premiere member; otherwise, you're ok.

Hope this helps...

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Answered on 12/22/04, 10:48 am


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