This article from The Banking Channel reports that liability for chargebacks from fraudulent transactions could cost PayPal the right to accept credit card payments, which comprises 50.5% of its business. You can read the article by going to http://www.epaynews.com/links/topstories.html and under "top stories," click on "PayPal Discloses High Rate of Chargebacks."

To read PayPal's SEC filing to go public (form S-1), go to http://www.sec.gov, under "Filings & Forms (EDGAR)" click on "Search for Company Filings," click on "Search the EDGAR Archives," and enter "PayPal Inc." in the search box.

NOTE: Beth Kagel (our Vintage Camera forum moderator) sent me this article about chargebacks. http://techupdate.zdnet.com/techupdate/stories/main/0,14179,2815396,00.html Fear of fraud is hindering e-commerce, and it is the online retailers who are responsible for failed transactions.