Financial News

  • 22 April 2014, 10:35

PayPal Warns Users Over Sharing Computers

Online payment firm PayPal has announced plans to prevent users from sharing their computers, smartphones and tablets with anyone else, even family members.

On Tuesday, the company started sending registered users email alerts of upcoming amendments to terms and conditions.

The "Notice of changes to our Legal Agreements" showed policy changes effective June 17, in an email that ran to more than 8,000 words.

A number of the amendments covered improved buyer and seller protection for users, as the company is owned by auction site eBay.

However, the firm also warns against sharing devices under a heading of "Keeping your Payment Instrument Safe", in which changes to security procedures required by users are explained.

Two new sub-sections have been added amid a rise in PayPal usage by people using smartphones, tablets and other portable devices, heightening the risk of misuse by people other than the rightful owner.

The first clause relates to keeping personal account details up to date and the second to pin and password security.

The second clause adds that users must agree to "Take all reasonable steps to protect the security of the personal electronic device through which you access the Services (including, without limitation, using pin and/or password protected personally configured device functionality to access the Services and not sharing your device with other people)."

No exceptions are listed and owners are in breach of their user agreement if they do not adhere to the clause.

The notification advised: "You do not need to do anything to accept the changes as they will automatically come into effect on the above date.

"Should you decide you do not wish to accept them you can notify us before the above date to close your account immediately without incurring any additional charges."

A PayPal statement issued to Sky News said: "We are not banning people from sharing devices.

"The new wording in our User Agreement says that users should take reasonable care when sharing devices so their PayPal account is not compromised. For example, users are advised not to log in to PayPal and then leave their computer unattended.

"This new wording is in line with many other financial services providers and similar agreements."

The existing PayPal user agreement, which runs to more than 20,000 words, was last updated in November 2013.

 

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