|PayPal, the online payments arm of eBay has said it will fine both buyers and sellers up to $500 for transactions involving gambling, pornography and the buying or selling of prescription drugs illegally. The company said that the new policy would come into effect on September 24th.|
PayPal at one time received almost 10 percent of its revenue from online gambling but changed its policy following its acquisition by eBay in 2002.
PayPal’s Amanda Pires told the press: 'What you're seeing here is an evolution of our program. We're trying to deter people who would offer PayPal as a way to pay for anything in these categories,' adding that the new stance had nothing to do with pressure from regulators.
Eric Jackson, former PayPal executive and author of the new book 'The PayPal Wars,' was skeptical, labeling the policy ‘draconian’. He told Reuters, 'I can only surmise that PayPal is coming under increasing regulatory pressure and has no choice at this point but to take an aggressive posture.'