WASHINGTON – PayPal, the electronic network that facilitates sending and receiving online payments, is cautiously optimistic that it will resolve its ongoing dispute with MasterCard in time to beat the May 1 deadline that could disallow MasterCard users from taking part in the popular online payment system. PayPal is an electronic network that allows small businesses and other to send and receive online payments without having to enter into agreements with MasterCard, Visa or American Express member banks. Earlier this week MasterCard announced a "clarification" on its existing rules that appeared to bar its member banks and credit unions from using processing third party payments on systems like PayPal. But a recent "clarification of the clarification," according to MasterCard spokesman Alex Lau, reads in part: "Nothing in this [previous] clarification would prohibit third party processors from processing MasterCard transactions in accordance with our rules and, in so doing building their business by providing a broad range of services to the merchant community." That, according to PayPal spokesman Vince Sollito, is where the two companies can meet. "There is nothing in the MasterCard rules that would prevent our customers from entering into a relationship with a MasterCard member through us."
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