PayPal hit by technical glitch

| September 28, 2012 | 0 Comments
PayPal hit by technical glitch

PayPal, the payments business which allows payments and money transfers to be made through the Internet, has been experiencing technical difficulties for the past week.

The glitch, which is affecting UK customers, has led to large numbers of transactions being sent for security checks, causing payments to be delayed.

The problem is believed to have been triggered by the launch of a new, quicker way of transferring money out of users’ accounts.

The new system is designed to transfer money from a Paypal user’s account to their bank within two hours of the transaction being requested by the customer.

A small number of these transactions are reviewed for security reasons, but the technical issues have resulted in a greater than expected number of transactions being sent for checks.

A PayPal spokesman said: “We have recently experienced technical issues that have resulted in more transactions than usual being reviewed.

“Although most withdrawals are not subject to review, a minority of customers have been told it may take up to 24 hours for us to review the transaction.

“We expect to solve the technical issue by the end of the week.”

PayPal is required to carry out security tracks on a certain number of transactions under industry regulation.

PayPal’s IT glitch follows the large scale IT problems which affected NatWest and Ulster Bank customers this summer.

Some customers were still unable to access their money weeks after the problem started in June, prompting the Financial Services Authority (FSA) to launch an investigation into banks’ IT strategy.

Earlier this month the FSA wrote to the nine largest banks and building societies in the UK requesting details of their IT contingency plans.

The letter asked for the names of senior managers who could be held personally responsible for IT problems, the Financial Times reported.

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