PayPal could not be accepted as HIPAA compliant because it won’t sign a business associate agreement (BAA). Covered entities shouldn’t use this payment platform for PHI.
PayPal doesn’t state that it provides HIPAA-compliant features for covered entities, and a company shouldn’t use this payment platform for protected health information (PHI). Not only are specific security protections missing, but this service can be a blatant violation of HIPAA regulations.
One issue is that PayPal uses transaction data to optimize relevant offers for both consumers and merchants. PayPal collects user information and provides data to advertisers, which is a clear violation of HIPAA regulations.
HIPAA privacy rules require the protection of all “individually identifiable health information.” Demographic data and payment history fall into this category.
Also, PayPal won’t sign a BAA with covered entities. Medical providers should find an alternate, HIPAA-compliant service to collect payments.
