PayPal announced holiday season deals. Customers can receive up to 20 percent cash back on purchases from major retailers, such as American Eagle Outfitters, eToys and Blockbuster, as well as free shipping from select PayPal merchants and great eBay deals for anyone paying with PayPal.

"With the economy tightening, consumers are shopping early and using every tool at their disposal to find the best deals on holiday gifts," said Cliff Hopkins, Senior Director for PayPal. "Many online merchants are responding with cash rebates, free shipping and other great deals for all our PayPal members this holiday season."

Beginning December 1 - December 22, PayPal members can receive cash-back incentives on purchases from retailers such as Overstock, Blue Nile and eToys. Offers vary by merchant, and rebates and discounts range from 5 to 30 percent. Merchants such as SmartBargains and 1800 Flowers are also offering free shipping this season on orders paid for with PayPal.

PayPal also said shoppers who arrive at eBay through Microsoft Live Search (www.live.com) can receive up to 30 percent cash back on the purchase of any eligible fixed-price item when using PayPal through the Microsoft Live Search cash back program.

PayPal will make available a website with more information about the 2008 PayPal holiday promotions and a list of participating merchants beginning December 1, 2008 (www.paypal.com/holiday).