HOW TO SERVE LEGAL PAPERS ON PAYPAL

This article will provide guidance on how to serve legal papers on Paypal. In the majority of countries that allow online cash transfers, PayPal Holdings, Inc. is the company people turn to. PayPal is an American multinational finance technology firm running online payment systems and provides an electronic alternative to conventional paper processes such as cheques and cash transfers. The firm is a payment processor for online suppliers, auction sites, and many other business users, charging a fee often to do so. Click Here for Frequently Asked Questions About Process Servers!

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HISTORY OF PAYPAL

In 2002, PayPal was made public by means of an Initial Public Offering. It was later in that year that PayPal became a wholly-owned subsidiary of eBay worth USD 1.5 billion. In 2015, eBay shared PayPal with stockholders in eBay and thus rendered PayPal an independent firm again. Click here for information on How To Identify A Good Process Service Agency

PayPal was initially founded as Confinity in December 1998 by Peter Thiel, Luke Nosek, and Max Levchin, a firm that has produced portable security software. This business strategy was less than successful and the entity then transformed itself into a digital wallet. In 1999, they then released the initial version of the PayPal electronic payments system. Click here for information on How Rush Process Service Can Expedite Your Case.

In March 2000, Confinity joined with Elon Musk’s online financial services firm X.com. In March 1999, X.com was co-founded by Elon Musk, Harris Fricker, Christopher Payne, and Ed Ho. Musk was intrigued by the simple payment mechanism generated by Confinity and was confident about the future potential of Confinity’s money transfer business. In October of that year, Musk determined that X.com will end its other Internet banking activities and concentrate on PayPal. This same month, Elon Musk was succeeded by Peter Thiel as Chief Executive Officer for X.com, who in 2001 renamed Confinity to PayPal and released the rechristened company in 2002. Click here for information on How Service of Process Ensures A Solid Foundation.

Shortly after PayPal’s IPO, eBay bought the business for USD1.5 billion on October 3^rd, 2002. In all eBay auctions thereinafter, a majority allowed PayPal payments, even in some closed auction lists. The majority of eBay customers utilized PayPal as the primary payment process and the service was competing with the Billpoint subsidiary of eBay, and Citibank’s c2it, YahooPayDirect!’s, and Google Checkout. PayPal released its platform in November 2009, enabling other firms to access its code and utilize its infrastructure to facilitate peer-to-peer online transactions. Click here for information on How Service of Process Ensures A Solid Foundation.

HOW PAYPAL WORKS

The services of PayPal enable users to conduct online financial transactions by allowing them to electronically transfer money between individuals and companies. Users may make or receive online auction payments via PayPal on websites like eBay, buy or sell products and services, give or receive contributions. Furthermore, an individual does not have to have a PayPal account to utilize the services of the business. Users of the PayPal account may change the conversion choice for currencies to account settings.

The PayPal app is accessible online or on Google Play and iTunes App Store. A year after buying Braintree, PayPal implemented its One Touch’ service, which enables customers to pay on participating merchant websites or applications with a one-touch option.

In 2007, the online credit product Bill Me Later, Inc. was purchased by PayPal and has since been renamed PayPal Credit, and provides services to the lenders of the PayPal Credit accounts of the Comenity Capital Bank. Bill Me Later, founded in 2000, is based in Timonium, Maryland. PayPal Credit provides consumers access, subject to credit approval, to an immediate online revolving credit line from hundreds of merchants that accept PayPal. PayPal Credit enables customers to buy online in the same manner as with a conventional credit card.

Bill Me Later being rebranded as PayPal also implies that customers may use PayPal Credit to finance transactions anywhere PayPal is accepted.

Between 2009 and 2016, PayPal has been running student accounts, enabling parents to set up a student account, transfer money there, and get a student debit card. The program offered tools to learn intelligently how to spend money and accept responsibility for actions. In August 2016, PayPal terminated student accounts.

In 2012, ‘PayPal Here’ was released, a tiny mobile payment system using a mix of free mobile software and a little card reader that connects to a smartphone. Now, PayPal has apps on both Android and iPhone smartphones, enabling users to find nearby businesses and restaurants accepting PayPal payments, order ahead of their place of business, and access their PayPal Credit accounts (formerly known as Bill Me Later).

THE LEGALITY OF PAYPAL

PayPal enables users to transfer, receive and keep money globally in twenty-five different currencies. PayPal provides both personal and corporate payment services and solutions. The business enables personal customers to easily shop, make payments and move money. Users need an e-mail address to register for an account and to complete this set-up, they have to give a credit card, debit card, or bank account. PayPal checks all the details to ensure the owner of the account is the appropriate person to set up the account before the service can be utilized.

Thiel, a PayPal founder, has stated that PayPal is not a bank since PayPal does not participate in fractional reserve banking. Rather, non-disbursed PayPal money is held in trade-relevant checking accounts. PayPal itself is not a bank, which means that if anyone leaves money in their PayPal account, it is not guaranteed by FDIC in a bank account in the same way it is. If users want full PayPal balance FDIC protection, it’s wiser to obtain a PayPal Cash Card.

PayPal will start depositing the money in a pooled PayPal account at an FDIC-insured bank after obtaining a PayPal Cash Card. PayPal intends to offer these funds with insurance coverage of FDIC up to the relevant limitations. If users maintain a large amount of money on their account, they would likely have to choose an account that has direct FDIC protection.

HOW EACH STATE GOVERNS PAYPAL

In the United States, PayPal is licensed on a state-by-state basis as a money transmitter. However, state regulations differ as to their definitions of banks, small banks, money services companies, and money transmitters vary. Although PayPal is not designated as a bank, the business is subject to several financial sector laws and standards, notably the Consumer Protection Regulation E and the United States PATRIOT Law. PayPal transactions are most similarly regulated by peer-to-peer (P2P) payments utilizing credit and debit cards.

Usually, the Truth in Lending Act is regulated by a credit card transaction, particularly the connection between an issuing bank and the cardholder as embodied by Regulation Z. TILA/Z involves special billing processes, dispute settlement, and cardholder responsibility for illegal payments. Likewise, a legal connection between the debit cardholder and the issuing bank must be governed by Regulation E. EFTA/E is aimed at the protection of consumers and offers rigorous processes for resolving errors. As the payment intermediary is PayPal and is otherwise not directly regulated, TILA Z and EFTA E will not work precisely as it is stated after the credit/debit card transaction happens via PayPal. In essence, the customer does not have redress in case of fraud by the seller unless a PayPal transaction is financed by a credit card.

In 2008, PayPal Europe was awarded a Luxembourg banking license, enabling it to do banking operations across the EU according to European Union legislation. It is therefore supervised by the Banking supervisory authority of Luxembourg, the Financial Sector Monitoring Commission, as a bank.

All the European accounts of the Company were moved to the Luxembourg bank of PayPal in July 2007. Prior to the transfer, PayPal had been registered as PayPal (Europe) Ltd in the United Kingdom, a company regulated by the UK Financial Services Authority (FSA) as an electronic money editor since 2004.

SUBSIDIARIES OF PAYPAL

HOW TO SERVE LEGAL PAPERS ON PAYPAL ASSET MANAGEMENT, INC.

PayPal Asset Management, Inc. is a major investment advisory firm headquartered in San Jose, California. Since 2002, it has been registered with the Securities and Exchange Commission as an advisor for purposes of California Process Service. PayPal Asset Management manages portfolios for investment firms.

PayPal Asset Management Inc. is a foreign stock entity registered in California on 27^th August 1999 gauging by California Process Service. However, the entity itself comes under Delaware jurisdiction. The registered Corporate Agent for California Process Service is the National Registered Agents Inc. PayPal Asset Management has its headquarters in San Jose, California wherein California Process Service may be levied.

HOW TO SERVE LEGAL PAPERS ON PAYPAL HOLDINGS, INC

PayPal Holdings Inc is an entity that comes under Delaware jurisdiction. The entity is, however, registered with the California Secretary of State as a foreign stock corporation for adequate California Process Service. PayPal Holdings Inc has been incorporated in California on 18^th November 2015, whereinafter California Process Service has been levied upon it. PayPal Holdings retains CT Corporation Systems as a registered agent for California Process Service. A Statement of Information is due every year beginning five months before and through the end of November to comply with California Process Service requirements.

HOW TO SERVE LEGAL PAPERS ON PAYPAL, INC.

PayPal Inc is a Delaware corporation that is incorporated in California and comes under California Process Service as such. The entity was first incorporated on 20^th July 1999 as a Foreign Stock corporation for purposes of California Process Service. PayPal Inc retains CT Corporation System as the registered agent for California Process Service. A Statement of Information is due every year beginning five months before and through the end of July to comply with California Process Service. The entity comes under the umbrella of Services Business Services as per the SIC code 7389.

HOW TO SERVE LEGAL PAPERS ON IZETTLE

The Swedish financial technology firm Zettle by PayPal (formerly known as iZettle), established by Jacob de Geer and Magnus Nilsson in April 2010. The company’s initial app and service was launched in 2011 with a variety of financial goods including payments, sales outlets, financing, and partner apps.

It was the first business to create a reader and smartphone app for smartphones that satisfy international security standards. The firm has over time expanded to provide a wide range of services, including software support and finance solutions to small companies throughout Europe and Latin America. PayPal bought iZettle primarily to extend its position in the shop with small companies to fight with Square, as well as to increase its presence in the European and Latin American markets

Zettle Solutions itself was incorporated in Delaware on 15th April 1998 Delaware. The entity retains The Company Corporation as a registered agent for Delaware Process Service.

HOW TO SERVE LEGAL PAPERS ON Xoom Corp.

Founded in 2001, Xoom is a global payment processing business that enables users to transfer money, pay bills, refill phones and carry out other functions in other countries for friends and family. Xoom has more than a million active U.S. users using its platform to transfer USD 7 billion foreign funds yearly at the time of the transaction. The purchase of Xoom by PayPal enables it to grow to global new areas, including the development of its transfer business. Xoom’s business is centered around payment processing and the acquisition was done on November 12^th, 2015.

HOW TO SERVE LEGAL PAPERS ON PAYPAL CREDIT

The PayPal Credit, formerly called Bill Me Later, is a patented payment method on the websites of several well-known dealers including Wal-Mart, Home Depot, USPS, and eBay. The website, which provides customers with a range of revolving credit through Synchrony Bank, enables online purchases without a credit card.

After clients open their accounts (including the credit check), PayPal Credit requires clients to connect to PayPal’s account to complete the transaction on each purchase. The authorized client may then pay the bill through PayPal official website by e-mail (check), phone, or online (via a bank account). Once the PayPal credit account has been connected to PayPal, it becomes a PayPal financing option and provides the option of paying down the PayPal Credit balance. Customers also get an e-mail anytime it is refused.

PayPal Credit is a revolving line of credit provided by Synchrony Bank, not a credit card. Like a conventional credit card, if necessary, the business will levy late payments. On May 19^th, 2015, the CFPB filed a lawsuit and proposed a consent order in federal court against PayPal, Inc. for unlawfully enrolling customers in its online credit product.

PayPal finalized its purchase of Bill Me Later on 7^th November 2008 from I4 Commerce. Bill Me Later is a PayPal service that enables customers to purchase products without providing credit card details. Bill Me Later Inc is centered in Lutherville Timonium, Maryland, United States, which is the address referenced for purposes of California Process Service.

HOW TO SERVE LEGAL PAPERS ON VENMO

Venmo is a PayPal-owned mobile payment service. Venmo account users may send and receive money through a mobile phone app; both the sender and recipient must reside in the United States. Venmo was established in 2009 with the goal of facilitating bill sharing amongst friends for things like movies, food, rent, and tickets.

By default, Venmo broadcasts all peer-to-peer transactions (except the amount), a feature that academics have shown may disclose sensitive information about users’ lives in certain circumstances. In 2018, the business reached a settlement with the FTC for numerous privacy and security breaches relating to this and other services, and updated the relevant settings, although it continued to face criticism for exposing users to privacy concerns. Venmo is based in New York for the purposes of California Process Service.

On 21^st October 2020, PayPal launched a new service that will enable consumers to utilize cryptocurrencies to purchase on the network from 2021 onwards. Paypal has used Paxos Trust to offer users the back-end infrastructure for managing and commercializing cryptocurrencies in compliance with data privacy laws and financial regulations. Paxos was responsible for purchasing the required Paypal regulatory permissions to support bitcoin assets.

The news included PayPal obtaining the New York Department of Financial Services‘ first conditional cryptocurrency license that will enable users to acquire cryptocurrencies including Bitcoin, Litecoin, Ethereum, and Bitcoin Cash.

DOMESTIC COVERAGE AREAS:

INTERNATIONAL COVERAGE AREAS:

OFFICE LOCATIONS

New York: (212) 203-8001 – 590 Madison Avenue, 21st Floor, New York, New York 10022
Brooklyn: (347) 983-5436 – 300 Cadman Plaza West, 12th Floor, Brooklyn, New York 11201
Queens: (646) 357-3005 – 118-35 Queens Blvd, Suite 400, Forest Hills, New York 11375
Long Island: (516) 208-4577 – 626 RXR Plaza, 6th Floor, Uniondale, New York 11556
Westchester: (914) 414-0877 – 50 Main Street, 10th Floor, White Plains, New York 10606
Connecticut: (203) 489-2940 – 500 West Putnam Avenue, Suite 400, Greenwich, Connecticut 06830
New Jersey: (201) 630-0114 – 101 Hudson Street, 21 Floor, Jersey City, New Jersey 07302
Washington DC: (202) 655-4450 – 1101 Pennsylvania Avenue, Suite 300, Washington DC 20004

FOR ASSISTANCE SERVING LEGAL PAPERS

Pick up the phone and call Toll-Free (800) 774-6922 or click the service you want to purchase. Our dedicated team of professionals is ready to assist you. We can handle all your process service needs; no job is too small or too large!

Contact us for more information about our process-serving agency. We are ready to provide service of process to all our clients globally from our offices in New York, Brooklyn, Queens, Long Island, Westchester, New Jersey, Connecticut, and Washington, D.C.

“Quality is never an accident; it is always the result of high intention, sincere effort, intelligent direction, and skillful execution; it represents the wise choice of many alternatives”– Foster, William A

Sources

1. Quora. ‘How Was the Rivalry between Paypal and X.com before and after the Merger?’ Forbes, Forbes Magazine, 9 Oct. 2015, www.forbes.com/sites/quora/2015/10/09/how-was-the-rivalry-between-paypal-and-x-com-before-and-after-the-merger/?sh=4d007a0d6154.

2. The President and Chief Executive Officer of X.com Musk and Bill Harris argued over the possible future viability of the money transfer firm and in May 2000 Harris departed the company.

3. PayPal’s IPO was listed under the PYPL ticker for 13 dollars per share and earned over 61 million dollars.

4. ‘Fractional Reserve Banking – an Economist’s PERSPECTIVE (TRANSCRIPT).’ Federal Reserve Bank of Atlanta, www.atlantafed.org/education/classroom-economist/fractional-reserve-banking/economists-perspective-transcript.

5.Fractional-reserve banking is a banking system that is used in virtually every country on Earth. Under this system, banks that accept public deposits are obliged to keep a part of their deposit obligations in liquid assets as a reserve but are free to make loans to borrowers of the balance.

6. ‘Paypal State Licenses.’ PayPal, www.paypal.com/us/webapps/mpp/licenses.

7. 12 CFR Part 1005 (Regulation E)

Regulation E is a Federal Reserve Board regulation that defines the processes and regulations governing electronic funds transfers (EFTs) and establishes standards for issuers of electronic debit cards.

Lake, Rebecca. ‘What Is Regulation e?’ Forbes, Forbes Magazine, 21 June 2021, www.forbes.com/advisor/banking/what-is-regulation-e/.

8. Truth in Lending Act (TILA) of 1968 is a United States federal law designed to promote the informed use of consumer credit, by requiring disclosures about its terms and cost to standardize the manner in which costs associated with borrowing are calculated and disclosed

9. 12 C.F.R. 226 (TILA/Z).

10. The Electronic Fund Transfer Act (EFTA) (15 U.S.C. 1693 et seq.)12 C.F.R. 205 (EFTA) 15 USC §§ 1693-1693r

11. ‘CSSF – the Commission De Surveillance Du Secteur Financier Is a Public Institution Which Supervises the Professionals and Products of the Luxembourg Financial Sector.’ CSSF Homepage Comments, www.cssf.lu/en/.

12. Entity Address:

2065 HAMILTON AVENUE
SAN JOSE CA 95125

Entity Mailing Address:

2065 HAMILTON AVENUE

13. Entity Address:

2211 NORTH FIRST STREET, C/O CORPORATE, LEGAL DEPARTMENT
SAN JOSE CA 95131

Entity Mailing Address:

2211 NORTH FIRST STREET, C/O CORPORATE, LEGAL DEPARTMENT
SAN JOSE CA 95131

14. Entity Address:

HARBORSIDE 5, 185 STREET, SUITE 1710
JERSEY CITY NJ 07311

Entity Mailing Address:

HARBORSIDE 5, 185 STREET, SUITE 1710
JERSEY CITY NJ 07311

15. The Standard Industrial Classification is a system for classifying industries by a four-digit code. Description for 7389: Business Services, Not Elsewhere Classified

16. THE COMPANY CORPORATION

2711 CENTERVILLE ROAD SUITE 400

WILMINGTON County: New Castle

DE Postal Code: 19808

302-636-5440

17. ‘CFPB Takes Action against PayPal for Illegally Signing up Consumers for Unwanted Online Credit.’ Consumer Financial Protection Bureau, 19 May 2015, www.consumerfinance.gov/about-us/newsroom/cfpb-takes-action-against-paypal-for-illegally-signing-up-consumers-for-unwanted-online-credit/.

18. ‘PayPal Settles FTC Charges That Venmo Failed to Disclose Information to Consumers about the Ability to Transfer Funds and Privacy SETTINGS; Violated Gramm-Leach-Bliley Act.’ Federal Trade Commission, 24 May 2019, www.ftc.gov/news-events/press-releases/2018/02/paypal-settles-ftc-charges-venmo-failed-disclose-information.

19. 95 Morton Street Floor 5 New York, NY 10014 United States

20. ‘Press Release – October 21, 2020: Superintendent Linda A. Lacewell ANNOUNCES Paypal to Be the First Approved Entity for DFS CONDITIONAL BITLICENSE.’ Department of Financial Services, www.dfs.ny.gov/reports_and_publications/press_releases/pr20201021

21. Surane, Jennifer. ‘Paypal Wades into Savings Account Battle with Revamped App.’ BloombergQuint, 21 Sept. 2021, www.bloombergquint.com/business/paypal-wades-into-savings-account-battle-with-revamped-app.