PayPal Freezes Diaspora's Account

from the sad dept

Wed, Oct 19th 2011 2:52pm — Mike Masnick

PayPal has an unfortunate reputation for arbitrarily shutting down accounts for various organizations, without much rhyme or reason. The latest is that it has frozen the donation account for Diaspora, the heavily hyped up effort to create an open source, distributed Facebook alternative. Diaspora kicked off with a ton of money via Kickstarter, but (as we worried) the project has proven to be more difficult to get off the ground than some expected. It recently sought more donations... only to discover that PayPal froze the account. Whether or not you agree with the project, it seems pretty ridiculous that PayPal just freezes such accounts. We hear stories of this way too frequently for it to be a mere mistake. The world desperately needs more payment processing options, because the ones out there today are woefully limited. Thankfully, there is at least some movement in that arena. We've been hearing a lot about Stripe -- a Silicon Valley payments startup, with funding from some original Paypal folks -- and, it's nice to see that they quickly jumped in to help Diaspora. Still, the more payment solutions out there, the better off we'll be.

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Filed Under: diaspora, frozen accounts, payment processors, paypal
Companies: diaspora, paypal, stripe

52 Comments

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Jay (profile), 19 Oct 2011 @ 2:07pm

Paypal still sucks
Looks like Paypal didn't expect such a huge reaction and has released the funds.

Link
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- Yeebok (profile), 19 Oct 2011 @ 4:34pm
  
  Re: Paypal still sucks
  Paypal just act like arses.. I am pretty sure someone at paypal would have been very aware diaspora was requesting donations.
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- hothmonster, 20 Oct 2011 @ 8:20am
  
  Re: Paypal still sucks
  They probably didn't like the free advertising and publicity for Stripe.
  [ link to this | view in chronology ]
Anonymous Coward, 19 Oct 2011 @ 2:56pm

It mystifies me that people actually use Paypal.
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- :Lobo Santo (profile), 19 Oct 2011 @ 2:59pm
  
  Re: Use PayPal! (Eat At Joes!)
  Quick!
  Name 3 better alternatives that provide the same type & amount of real-world services...
  [ link to this | view in chronology ]
  - Keith_Emperor_of_Penguins (profile), 19 Oct 2011 @ 3:15pm
    
    Re: Re: Use PayPal! (Eat At Joes!)
    digitalriver.com
    2Checkout.com
    AlertPay.com
    TrialPay.com
    E-junkie.com
    checkout.google.com
    bitcoin.org
    moneybo okers.com
    paymate.com
    obopay.com
    payments.amazon.com
    kagi.com
    neteller.com
    paypay.com
    ccnow.c om
    libertyreserve.com
    strictpay.com
    perfectmoney.com
    NETeller.com
    EntroPay.com
    Webmoney.com
    [ link to this | view in chronology ]
    - Keith_Emperor_of_Penguins (profile), 19 Oct 2011 @ 3:15pm
      
      Re: Re: Re: Use PayPal! (Eat At Joes!)
      oops, sorry about that. That was more then 3.
      [ link to this | view in chronology ]
    - :Lobo Santo (profile), 19 Oct 2011 @ 3:39pm
      
      Re: Re: Re: Use PayPal! (Eat At Joes!)
      Excellent, thank you.
      
      I've been looking to get away from PayPal for some time now, but haven't had the time to look into good alternatives.
      
      ;-P
      [ link to this | view in chronology ]
      - Ikarushka (profile), 19 Oct 2011 @ 4:05pm
        
        Re: Re: Re: Re: Use PayPal! (Eat At Joes!)
        Go with ccnow ;-P
        [ link to this | view in chronology ]
        
        Keith_Emperor_of_Penguins (profile), 19 Oct 2011 @ 4:53pm
        
        Re: Re: Re: Re: Re: Use PayPal! (Eat At Joes!)
        I like AlertPay personally
        [ link to this | view in chronology ]
      - Donnicton, 19 Oct 2011 @ 6:42pm
        
        Re: Re: Re: Re: Use PayPal! (Eat At Joes!)
        moneybookers.com - not to be confused with moneyhookers.com, a completely different site....
        [ link to this | view in chronology ]
        
        hothmonster, 20 Oct 2011 @ 8:22am
        
        Re: Re: Re: Re: Re: Use PayPal! (Eat At Joes!)
        "moneyhookers.com" Do they sleep with money? If not that name is extremely redundant.
        [ link to this | view in chronology ]
        
        chris (profile), 24 Oct 2011 @ 7:38am
        
        Re: Re: Re: Re: Re: Re: Use PayPal! (Eat At Joes!)
        "moneyhookers.com" Do they sleep with money? If not that name is extremely redundant.
        
        you're confusing money hookers with hooker monies. money hookers is a service for hookers to collect money. it converts regular money into hooker monies, which hookers can then use to buy goods and services.
        
        an excellent service for converting hooker monies back in to regular currency is hookermonies.com the also have an app store.
        [ link to this | view in chronology ]
    - Big Al, 19 Oct 2011 @ 4:24pm
      
      Re: Re: Re: Use PayPal! (Eat At Joes!)
      "same type & amount of real-world services" - most places I shop don't provide any of these options. Visa, Mastercard or PayPal are, to all intents and purposes, the only 'real world' accepted methods.
      [ link to this | view in chronology ]
    - Chronno S. Trigger (profile), 19 Oct 2011 @ 4:45pm
      
      Re: Re: Re: Use PayPal! (Eat At Joes!)
      I can create a donate now button via Google Checkout? I'm not finding that option on the website.
      [ link to this | view in chronology ]
      - Keith_Emperor_of_Penguins (profile), 19 Oct 2011 @ 4:50pm
        
        Re: Re: Re: Re: Use PayPal! (Eat At Joes!)
        Here you go:
        
        http://checkout.google.com/support/sell/bin/answer.py?hl=en&answer=72721
        
        or alternatively, you can always use flattr.com
        [ link to this | view in chronology ]
        
        Chronno S. Trigger (profile), 19 Oct 2011 @ 4:58pm
        
        Re: Re: Re: Re: Re: Use PayPal! (Eat At Joes!)
        "You can use Google Checkout to collect donations if you:
        
        Represent a valid 501(c)(3) or 501(c)(6) tax-exempt organization."
        
        So, no, I can't. I may look into flatter, but seriously, who has flatter? Eh, I'll do it anyways just to see what happens.
        [ link to this | view in chronology ]
        
        Keith_Emperor_of_Penguins (profile), 19 Oct 2011 @ 5:00pm
        
        Re: Re: Re: Re: Re: Re: Use PayPal! (Eat At Joes!)
        ummm, actually yes, you still can:
        
        "Free transaction processing is available for non-profits that are part of the Google Grants program. All other non-profits will be charged our standard transaction fees. Google Checkout has no monthly, setup, or gateway fees."
        [ link to this | view in chronology ]
        
        Chronno S. Trigger (profile), 19 Oct 2011 @ 5:10pm
        
        Re: Re: Re: Re: Re: Re: Re: Use PayPal! (Eat At Joes!)
        I do not represent a non-profit organization. It's just me and I'm most definitely for profit.
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        Keith_Emperor_of_Penguins (profile), 19 Oct 2011 @ 5:07pm
        
        Re: Re: Re: Re: Re: Re: Use PayPal! (Eat At Joes!)
        you can also try amazon simple pay:
        
        https://payments.amazon.com/sdui/sdui/index.htm
        
        "Amazon Simple Pay is a payment-only service that allows your customers to use payment information from their Amazon.com account to pay for digital goods, services, donations, subscriptions and marketplace transactions. Your customers use payment methods stored in their Amazon.com accounts to complete payments on your website."
        [ link to this | view in chronology ]
        
        Chronno S. Trigger (profile), 19 Oct 2011 @ 5:22pm
        
        Re: Re: Re: Re: Re: Re: Re: Use PayPal! (Eat At Joes!)
        "Amazon Simple Pay Donations can be used by U.S.-based, IRS-certified 501(c)(3) nonprofit organizations to collect donations"
        
        Damn, this is a pain in the ass.
        
        Flattr: "To get money out of the system, you can use PayPal or Moneybookers."
        [ link to this | view in chronology ]
        
        Keith_Emperor_of_Penguins (profile), 19 Oct 2011 @ 5:27pm
        
        Re: Re: Re: Re: Re: Re: Re: Re: Use PayPal! (Eat At Joes!)
        HAHA! yep, that's what happens when we get an oligopoly by PayPal.
        
        But hey, you can use Moneybookers
        [ link to this | view in chronology ]
        
        Keith_Emperor_of_Penguins (profile), 19 Oct 2011 @ 5:29pm
        
        Re: Re: Re: Re: Re: Re: Re: Re: Use PayPal! (Eat At Joes!)
        But If my memory serves me, doesn't PayPal charge money for those kind of for-profit donations anyway?
        [ link to this | view in chronology ]
        
        Anonymous Coward, 19 Oct 2011 @ 7:32pm
        
        Re: Re: Re: Re: Re: Re: Re: Re: Re: Use PayPal! (Eat At Joes!)
        You gave give gifts. Gifts are not charged. Even with a business account. I've had upwards of 500$ "gifted" to me without paypal taking a single penny in my business account. And I'm at least fairly sure they won't close shop in the morning and run away with my funds like so many others.
        [ link to this | view in chronology ]
        
        Anonymous Coward, 20 Oct 2011 @ 4:13pm
        
        Re: Re: Re: Re: Re: Re: Re: Re: Re: Re: Use PayPal! (Eat At Joes!)
        Have you tried so many others? Or is that just more of your paranoid opinion?
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    - Anonymous Coward, 19 Oct 2011 @ 7:27pm
      
      Re: Re: Re: Use PayPal! (Eat At Joes!)
      Ok let's go through the list then.
      
      digitalriver.com
      [ link to this | view in chronology ]
      - Anonymous Coward, 19 Oct 2011 @ 7:30pm
        
        Re: Re: Re: Re: Use PayPal! (Eat At Joes!)
        Ok TD fails. It removed all but those 2 lines. Nice.
        
        Moral of the story is: you can name the 1000s that exist. Are they trusted? No. Are they accepted widely? No. Doesn't anyone remember the epassporte fiasco? Guess you guys have selective memories huh.
        
        Paypal are by far the only widely accepted and trusted online payment processor.
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        The eejit (profile), 20 Oct 2011 @ 1:39am
        
        Re: Re: Re: Re: Re: Use PayPal! (Eat At Joes!)
        Accepted? Yes.
        
        Trusted? Not a fucking chance.
        [ link to this | view in chronology ]
        
        Anonymous Coward, 20 Oct 2011 @ 1:49am
        
        Re: Re: Re: Re: Re: Use PayPal! (Eat At Joes!)
        Nobody forgot, we just don't use the others for much, but there are some that are equal or better than people on the trust front, service side they lack a bit of depth.
        
        Everyone should just trade in bitcoins or another virtual currency that reaches global proportions than we would see some changes.
        [ link to this | view in chronology ]
        
        Anonymous Coward, 20 Oct 2011 @ 8:19am
        
        Re: Re: Re: Re: Re: Re: Use PayPal! (Eat At Joes!)
        I still can't shop newegg or ebay using alternatives. Until most stores accept alternatives, paypal is, sadly, the only way to go.
        [ link to this | view in chronology ]
        
        Anonymous Coward, 20 Oct 2011 @ 4:11pm
        
        Re: Re: Re: Re: Re: Use PayPal! (Eat At Joes!)
        In your opinion maybe. I've had money stolen from my PayPal my PayPal, which is why I quit.
        
        You seem to believe your opinion is worth the shit its anonymously written on
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  - Anonymous Coward, 19 Oct 2011 @ 3:20pm
    
    Re: Re: Use PayPal! (Eat At Joes!)
    With that attitude, you are going to Pay Pal
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- vancedecker (profile), 21 Oct 2011 @ 8:59am
  
  Re:
  It's really big in the underworld. My drug dealer won't take anything but...
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Furry Rodent, 19 Oct 2011 @ 2:58pm

PayPal are assholes
They also shut down accounts for things like on-line artists and creators for years, using some weird conservative 'moral' guideline they have. Just ask the furry community, most if not all their sites are hated by PayPal and get their accounts suspended.
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- God, 20 Oct 2011 @ 3:16am
  
  Re: PayPal are assholes
  If you are using paypal to accept payments for products that paypal later decides they "don't like" they will screw you over but good. They did this to a friend who was selling exotic but legal herbs online. Really wrecked his life for a couple years and drove him out of business.
  [ link to this | view in chronology ]
Anonymous Coward, 19 Oct 2011 @ 4:05pm

I went looking but didn't find the answer: Why did PayPal suspend their account? Anybody in the know?
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- That Anonymous Coward (profile), 19 Oct 2011 @ 4:27pm
  
  Re:
  In the past they have done it because a media corporation said such and such is a rogue site now shut them down.
  They have also shut some down to appease the US Government.
  
  Tinfoil hat hand out line forms to the left.
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  - bjupton (profile), 19 Oct 2011 @ 5:08pm
    
    Re: Re:
    Is that line to get a new one? My old one is all denty.
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    - Anonymous Coward, 19 Oct 2011 @ 9:08pm
      
      Re: Re: Re:
      Mine is in the form of a Pirate hat!
      [ link to this | view in chronology ]
      - That Anonymous Coward (profile), 20 Oct 2011 @ 12:02am
        
        Re: Re: Re: Re:
        Mines shaped like an Admirals hat
        [ link to this | view in chronology ]
        
        S, 20 Oct 2011 @ 11:43am
        
        Re: Re: Re: Re: Re:
        Tinfoil pith helmet. Oh yeah.
        [ link to this | view in chronology ]
        
        That Anonymous Coward (profile), 20 Oct 2011 @ 6:46pm
        
        Re: Re: Re: Re: Re: Re:
        Oh the humanity... you just summoned tinfoil Koolaid man!
        RUN!!!!!!!!!!
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Ikarushka (profile), 19 Oct 2011 @ 4:14pm

Paypal-bitcoin
I came up with a wonderful idea to use paypal-bitcoin gateway, because for most people it is a hassle to get bitcoins in order to make a single semi-anonymous donation for example. So you would pay me using PayPal and provide a bitcoin address, and I would charge a small fee over the exchange rate.

As it always happens to me, someone stole my idea a year before I conceived it.

But I wouldn't succeed anyway: this very useful service was nixed by PayPal....
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B's Opinion Only (profile), 19 Oct 2011 @ 4:14pm

People seem to forget that Paypal isn't a bank. It is a private business that has no federal oversight, no deposit insurance, no requirement to adhere to any sort of banking laws, and NO way to speak to a human when they screw you over.

Of course Paypal can arbitrarily freeze your funds indefinitely without recourse - it's in the contract you agreed to when you signed up. You DID read it, right?
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- Mike C. (profile), 19 Oct 2011 @ 4:42pm
  
  Re:
  Yup, that's why I have a verified account with no links to any credit cards or checking accounts anymore and about $0.45 in it. It still sees activity once in a while when I route a prepaid credit card through it, but for the most part, it just sits there wasting their resources... :-)
  [ link to this | view in chronology ]
  - martyburns (profile), 20 Oct 2011 @ 4:40am
    
    Re: Re:
    A prepaid credit card? Is the company you get that from the one receiving credit from you?!?
    [ link to this | view in chronology ]
- Anonymous Coward, 19 Oct 2011 @ 6:20pm
  
  Re:
  but it essencially IS a bank, and many people have actually won against them for violating state laws, holding funds illegally.
  [ link to this | view in chronology ]
Anonymous Coward, 19 Oct 2011 @ 4:37pm

I'm a fan of dwolla.com. Flat fee, mobile app and regular, and clean, no BS interface.
[ link to this | view in chronology ]
monkyyy, 19 Oct 2011 @ 6:01pm

someone call anonymous
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- hothmonster, 20 Oct 2011 @ 8:29am
  
  Re:
  No, I don't want him to get my number of caller ID.
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Prof Allen, 20 Oct 2011 @ 1:14am

PayPal's Business Model
PayPal's business model is allowing small people to get a little bit of success, then stealing their money. I've lost hundreds to PayPal's theft. When will we shut these criminals down?

--Prof Allen
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Anonymous Coward, 20 Oct 2011 @ 11:23am

The problem with more payment options is that at some point it becomes hard to know which ones are legit and which ones are scams.
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