PayPal's State Licenses
In 2006, PayPal was investigated by 28 U.S. States for making misleading and outright false claims to customers. PayPal settled the cases with the individual states. Why? Because contrary to popular belief, PayPal is licensed to operate on a state-by-state basis in the United States.
Each state has the power to shut PayPal down in their state -- or force PayPal to make changes in its business practices or face suspension of operations.
As of July 2, 2007, PayPal is licensed to operate in the European Union as a bank -- with a banking license and full banking privileges. While PayPal sought -- and received -- banking status in Europe, it resists being called a bank in the United States. Why? If PayPal were licensed as a bank in the United States -- or if the United States Government determined that PayPal was a bank based on the services that they offer -- PayPal would not be able to get away with the improper business practices it engages in today.
An essential tool for anybody with PayPal problems in America is to know that PayPal is licensed to operate in YOUR STATE. Should your state receive enough complaints about PayPal, it could force PayPal into expensive litigation with your state. It could also force PayPal to solve your problem and change its ways or face being shut down in your state.
Since PayPal is a public company (it issues stock), such an action would force PayPal's executives (President, Vice Presidents, Chief Financial Officer, etc) to answer to its stockholders. Their jobs would be in great jeopardy in such a case. Hence, these people would do almost anything to avoid such a situation.
The bottom line is this: complaining to your state's licensing authority will move PayPal to action. For PayPal, it is better to solve your problem than to ignore it and let the complaints pile up. Sooner or later, your state will act. PayPal wants to avoid that.
Following is a list of the U.S. States where PayPal is licensed to operate. Included in this list is the state regulatory agency responsible for keeping PayPal in line and the state statute (law) that applies to Paypal's status as a money transmitter
If your state is NOT on this list, that means PayPal does not have a license to operate in your state or it does not need one.
CLICK on the law that allows PayPal to operate and SEE THEIR LICENSE.
- Alabama
- Arizona
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Idaho
- Illinois
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Minnesota
- Mississippi
- Nebraska
- New Hampshire
- New Jersey
- North Carolina
- Ohio
- Oregon
- Pennsylvania
- Puerto Rico
- Rhode Island
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wyoming
Tip: CLICK on the NAME OF THE STATE LAW for your state to view PayPal's license!
Alabama Securities Commission
Arizona State Banking Department
California Department of Financial Institutions
Transmission of Money Abroad Law
Colorado State Banking Commissioner
Connecticut Department of Banking
Money Order and Travelers Check Licensees Act
Delaware Office of the State Bank Commissioner
District of Columbia (Washington D.C.)
District of Columbia Department of Regulatory and Consumer Affairs
Florida Office of the Controller
Idaho Department of Finance
Illinois Department of Financial Institutions
Iowa Division of Banking
Kansas Division of Banking
Office of Financial Institutions
Kentucky Money Transmitters Act of 2006
Louisiana Office of Financial Institutions
Sale of Checks and Money Transmitters Act
Maine Office of Consumer and Credit Regulation
Maryland State Bank Commissioner
Maryland Money Transmitters Act
Commonwealth of Massachusetts -- Division of Banks and Loan Agencies
Minnesota Department of Commerce
Department of Banking and Consumer Finance
Nebraska Department of Banking and Finance
New Hampshire Banking Department
New Jersey Department of Banking and Insurance
North Carolina Banking Commission
Ohio Department of Commerce
Transmitters of Money & Check Cashing Business Domestic and Foreign
Oregon Department of Insurance and Finance
Pennsylvania Department of Banking
Licensing Business of Transmitting Money or Credit Act
Puerto Rico Bureau of Financial Institutions
Laws to Regulate the Business of Money Transfers
Rhode Island Department of Business Regulation
Department of Financial Institutions
Tennessee Money Transmitter Act of 1994
Texas Department of Banking
Money Services Business Statute
Utah Department of Financial Institutions
Check Cashing Registration Act
Vermont Department of Banking, Insurance, Securities and Health Care Administration
Virginia Bureau of Financial Institutions
Money Order Sales and Money Transmission Services
Washington Department of Financial Institutions
West Virginia Division of Banking
Issuance and Sale of Checks, Drafts and Money Orders Act
Wyoming Department of Audit -- Division of Banking
