PayPal must pay a total of $25 million in restitution after being charged by the Consumer Financial Protection Bureau for having unknowingly signed up its customers to a credit service known as the "Bill Me Later" option, which initially lets consumers purchase items and pay it at a later time, only to be charged with late fees and extra charges later on.

$15 million will serve as the reimbursement for all the victims of the faulty service of the company, while $10 million serves as a fine to the CFPB's Civil Penalty Fund, which pays out victims in instances where companies can't, Bloomberg reported. PayPal agreed to these fines, but it didn't admit it did anything wrong.

The CFPB has also reminded PayPal to improve its means of disclosing its options for users, especially regarding credit programs it offers and the fees and interest that these programs honestly entail. 

"We continually improve our products and enhance our communications to ensure a superior customer experience," PayPal spokeswoman Amanda Miller said in an email, The Verge reported. "Our focus is on ease of use, clarity and providing high-quality products that are useful to consumers and are in compliance with applicable laws."

"Online shopping has become a way of life for many Americans and it's important that they are treated fairly," consumer bureau Director Richard Cordray said in a statement, FirstPost reported.

The incident follows a year after PayPal announced it will split from parent company eBay due to slow growth.