Technical Issues Bring Down PayPal

SAN FRANCISCO — Internet payment service PayPal has been experiencing severe technical glitches since late last week due to “unforeseen problems” with a new code upgrade, the company said Tuesday.

Ping requests to the eBay subsidiary’s website received 100 percent packet loss, and reports of PayPal debit cards being rejected at ATMs and stores across the country have been widely reported over the Internet. PayPal accounts and log-ins have also been affected by the problems.

According to PayPal, the problems also include an inability to pay for eBay auctions and use the PayPal shipping functionality.

“This really sucks!!” wrote one user on eBay’s Paypal forums yesterday. “I have all my eBay money in my [PayPal] account. I just paid my mortgage so this is all the money I have right now!!! I need my money! I have been trying to access my account for days now. This is ridiculous.”

Another PayPal user said that he was arrested at a restaurant and charged with attempted petty theft after his PayPal debit card was declined.

PayPal, in both written and oral statements made over the last several days, said technicians are currently working to correct the problem.

“Everyone is working fast and furiously to get it all fixed,” said PayPal spokesperson Amanda Pires.

“We haven’t found the ultimate cause,” said Pires. “But we have all resources dedicated to getting it fixed as soon as possible.”

According to PayPal, the problems were due to several new unspecified features added to the PayPal backend.

“The code worked well when tested and during the first hours of launch,” said the company in a statement released on the eBay website. “Unfortunately, problems handling peak levels of traffic developed later in the day that created intermittent availability and errors for members.”

The company also assured users that PayPal account data and personal information has not been compromised by the current problems.

During reports issued for the end of the second quarter, PayPal stated that it handled more than 50 million total accounts and processed roughly $4.4 billion accounts in the most recent three-month period.

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

AV Bulletin: Loopholes and Lawsuits

This roundup provides an update on the latest news and developments on the age verification front as it impacts the adult industry.

Utah 'Porn Tax' Bill Will Head to Governor's Desk

A bill that would tax adult websites and make them liable if minors circumvent geolocation has passed the Utah state legislature and will soon head to the office of Gov. Spencer Cox for signature or veto.

Flirt4Free Co-Founder Gregory Clayman Passes Away

Gregory Clayman, a pioneering figure in the live cam sector and cofounder of the long-running webcam platform Flirt4Free, has passed away.

Pornhub to Restrict Access in Australia as AV Rules Take Effect

Pornhub parent company Aylo will restrict access to its free video-sharing platforms in Australia in response to new age verification regulations, the company confirmed Thursday.

ASACP Announces F2F as 1st Gold Sponsor

The Association of Sites Advocating Child Protection (ASACP) has announced Friends2Follow (F2F) has upgraded its sponsorship and become the organization’s first Gold Sponsor.

House Committee Approves Online Safety Bill With Federal AV Requirement

The U.S. House of Representatives Committee on Energy and Commerce on Thursday passed the Kids Internet and Digital Safety (KIDS) Act, which includes provisions to make age verification by adult websites federal law.

Segpay Adds 'Pay by Bank (UK)' Payment Solution

Segpay has added the Pay by Bank (UK) option to its direct payments solutions.

Creator Verification Platform 'VerifiedCollab' Launches

Performer Eli Thomas has launched VerifiedCollab, a verification platform for creators and producers.

House Committee to Weigh Online Safety Bill With Federal AV Requirement

The U.S. House of Representatives Committee on Energy and Commerce will meet Thursday to consider and potentially amend the Kids Internet and Digital Safety (KIDS) Act, which includes provisions to make age verification by adult websites federal law.

Show More