Payment hiccups hit Yahoo shares

Problems with online checkouts in the US have hurt the search giant's stock

The technical problems hit Yahoo on a busy day for online shopping

Technical problems in Yahoo's online payment system on one of have caused the company's share value to tumble 3.5 per cent.

Yesterday morning US merchants reported that customers using the search giant's Checkout Manager application were receiving error messages during the final stages of transactions.

The problems arose at an unfortunate time for Yahoo, since "Cyber Monday" - the first Monday after Thanksgiving - is regarded as a key date for online retailers.

Normal service resumed by 11pm PST, but reporting of the news led to heavy stock trading. Yahoo's share value had fallen 3.5 per cent to $25.22

The concept of Cyber Monday was originally founded on the principle that consumers returning to work after the Thanksgiving weekend would search online for deals following "Black Friday", the start of the Christmas shopping season.

While the idea has since been disregarded, the day is now an important marketing event, sponsored by the National Retail Federation.