updated 05:00 pm EDT, Wed July 27, 2011
Blame bouncing between PayPal, Apple
Some people buying OS X Lion upgrades via PayPal are being overcharged, potentially in dramatic fashion, according to people responding to AppleInsider and Apple's support forums. In one case a person complains that they were charged about $3,878 on July 28th, the sum coming from 122 individual charges worth $31.79 each. "Apple blames PayPal, PayPal blames Apple," the person says. "They both are claiming to investigate, but I am stuck broke for three days now."
A poster on Apple's forums claims to have been hit in a similar manner, suddenly faced with a bill of $599.80 based on 20 individual charges for Lion. Only people who have a PayPal account linked to an iTunes Store account appear to be affected by the repeat billing so far; in any case, PayPal is in some instances blaming Apple for the situation, while Apple may insist it has only charged once. Accounts also suggest that the overcharging is a "known issue" at Apple though, possibly connected to automated payment systems overloading under the crush of Lion demand. Over a million downloads of the OS were made during the first day.
The financial consequences of the billing are proving serious in some cases. Beyond just the initial account drain, some people say they are encountering overdraft fees and other penalties. PayPal is allegedly refusing to refund money directly to bank accounts, preferring to withdraw the money from banks first and then credit refunds to PayPal balances.