PayPal Says Sorry by Waiving Fees for a Day

By Matthew Hicks  |  Posted 2004-10-27 Print this article Print

To apologize for recent service disruptions, the payment service plans a one-day payback of transaction fees for premier and business account members in the United States.

PayPal wants to repay its users for dealing with its recent spate of sporadic outages by giving back a days worth of fees. The online payment service, owned by eBay Inc., announced Wednesday that it will credit its premier and business account members for all transaction fees they pay this Thursday. The payback will cover transactions posted between midnight and 11:59 p.m. PDT. In a note to customers, PayPal said the offer serves as an apology for the recent site problems and as a thank-you to customers for their business.
Earlier this month, PayPal battled on-and-off service outages for about five days following a site upgrade. The company blamed glitches in the software update.
Users at the time said they lost sales because of the interruptions. Some online merchants and sellers on eBay, which uses PayPal, were unable to complete their sales. Click here to read more about the outages effect on users. PayPal, which has about 50 million user accounts, said it would automatically credit accounts for the transition fees by Nov. 25. The offer covers the United States but does not apply in 17 other countries listed in the note. Check out eWEEK.coms for the latest news, reviews and analysis in programming environments and developer tools.

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Matthew Hicks As an online reporter for, Matt Hicks covers the fast-changing developments in Internet technologies. His coverage includes the growing field of Web conferencing software and services. With eight years as a business and technology journalist, Matt has gained insight into the market strategies of IT vendors as well as the needs of enterprise IT managers. He joined Ziff Davis in 1999 as a staff writer for the former Strategies section of eWEEK, where he wrote in-depth features about corporate strategies for e-business and enterprise software. In 2002, he moved to the News department at the magazine as a senior writer specializing in coverage of database software and enterprise networking. Later that year Matt started a yearlong fellowship in Washington, DC, after being awarded an American Political Science Association Congressional Fellowship for Journalist. As a fellow, he spent nine months working on policy issues, including technology policy, in for a Member of the U.S. House of Representatives. He rejoined Ziff Davis in August 2003 as a reporter dedicated to online coverage for Along with Web conferencing, he follows search engines, Web browsers, speech technology and the Internet domain-naming system.

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