PayPal amp; NetSpend Problems

PayPal -- Legal
In 2002 class representatives Jeffrey Resnick and Roberta Toher initiated a class-lawsuit against PayPal alleging the company violated the Electronic Fund Transfer Act of 1978. Signed by President Jimmy Carter, the EFTA identified the liabilities, rights and responsibilities of participants engaged in electronic funds transfer activities. The suit alleged PayPal declined to provide customers with relevant information regarding the resolution of disputes and improper investigative practices concerning electronics funds transfer. A settlement was reached in November 2003, and required PayPal change its business practices involving resolution of disputes and electronic funds practices and pay $9.25 million to the settlement fund.
Other PayPal Problems
PayPal requires customers register the countries they will be logging in from or using their card before departing. While this is an adequate security measure against fraudulent use, PayPal has, in some instances, put a freeze on a customer’s account or debit card upon registering the countries they will be in. PayPal will flag any transaction it deems suspicious and deny you access to your money for as longs as five days, even after meeting the requirements needed to unfreeze your account. Unfreezing a PayPal account from abroad is a difficult endeavor, and requires a fax of your passport as well as a phone number you can be reached in the country you are in.
NetSpend -- Holds and Fees
NetSpend is a prepaid debit card service that allows customers to fund their accounts via direct deposit or in conjunction with one of several payday-loan operations, such as Advance America and Payday Advance, as well as pawn shops. Although NetSpend allows free balance inquiries online, they charge customers 50 cents for balance inquiries made by telephone. Other problems associated with NetSpend include the company’s practices concerning the holding of funds. Although the placement of holds on cardholders’ accounts is commonplace in instances such as renting a hotel room, it isn’t uncommon for NetSpend to take as long as five days to release them after a predetermined date offered to the customer by a NetSpend representative.
Other NetSpend Problems
In addition to payday loan operations and pawn stores, NetSpend has relationships with casinos, such as Las Vegas USA and Sun Palace Casino. These arrangements are possible with the mentioned online casinos, but not brick-and-mortar casinos, such as those in Las Vegas. Such relationships are deemed unethical by the Nevada Gaming Commission. In addition, cards associated with institutions that belong to the NetSpend family of banks, such as MetaBank, were found on the person’s of mercenaries that assassinated a Hamas leader, prompting the U.S. Treasury to issue a rule requiring potential customers to provide identification before opening an account.