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Failures

by Mike Masnick

Wed, Oct 19th 2011 2:52pm




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

Companies:
diaspora, paypal, stripe


PayPal Freezes Diaspora's Account

from the sad dept

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.

52 Comments | Leave a Comment..


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Reader Comments (rss)

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  1.  

    Paypal still sucks

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

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

    Link

    [ reply to this | link to this | view in thread ]

  2.  
    identicon
    Anonymous Coward, Oct 19th, 2011 @ 2:56pm

    It mystifies me that people actually use Paypal.

    [ reply to this | link to this | view in thread ]

  3.  

    PayPal are assholes

    identicon
    Furry Rodent, Oct 19th, 2011 @ 2:58pm

    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.

    [ reply to this | link to this | view in thread ]

  4.  

    Re: Use PayPal! (Eat At Joes!)

    icon
    :Lobo Santo (profile), Oct 19th, 2011 @ 2:59pm

    Quick!
    Name 3 better alternatives that provide the same type & amount of real-world services...

    [ reply to this | link to this | view in thread ]

  5.  

    Re: Re: Use PayPal! (Eat At Joes!)

    icon
    Keith_Emperor_of_Penguins (profile), Oct 19th, 2011 @ 3:15pm

    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

    [ reply to this | link to this | view in thread ]

  6.  

    Re: Re: Re: Use PayPal! (Eat At Joes!)

    icon
    Keith_Emperor_of_Penguins (profile), Oct 19th, 2011 @ 3:15pm

    oops, sorry about that. That was more then 3.

    [ reply to this | link to this | view in thread ]

  7.  

    Re: Re: Use PayPal! (Eat At Joes!)

    identicon
    Anonymous Coward, Oct 19th, 2011 @ 3:20pm

    With that attitude, you are going to Pay Pal

    [ reply to this | link to this | view in thread ]

  8.  

    Re: Re: Re: Use PayPal! (Eat At Joes!)

    icon
    :Lobo Santo (profile), Oct 19th, 2011 @ 3:39pm

    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

    [ reply to this | link to this | view in thread ]

  9.  

    Re: Re: Re: Re: Use PayPal! (Eat At Joes!)

    icon
    Ikarushka (profile), Oct 19th, 2011 @ 4:05pm

    Go with ccnow ;-P

    [ reply to this | link to this | view in thread ]

  10.  
    identicon
    Anonymous Coward, Oct 19th, 2011 @ 4:05pm

    I went looking but didn't find the answer: Why did PayPal suspend their account? Anybody in the know?

    [ reply to this | link to this | view in thread ]

  11.  

    Paypal-bitcoin

    icon
    Ikarushka (profile), Oct 19th, 2011 @ 4:14pm

    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....

    [ reply to this | link to this | view in thread ]

  12.  
    icon
    B's Opinion Only (profile), Oct 19th, 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?

    [ reply to this | link to this | view in thread ]

  13.  

    Re: Re: Re: Use PayPal! (Eat At Joes!)

    identicon
    Big Al, Oct 19th, 2011 @ 4:24pm

    "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.

    [ reply to this | link to this | view in thread ]

  14.  

    Re:

    icon
    That Anonymous Coward (profile), Oct 19th, 2011 @ 4:27pm

    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.

    [ reply to this | link to this | view in thread ]

  15.  

    Re: Paypal still sucks

    icon
    Yeebok (profile), Oct 19th, 2011 @ 4:34pm

    Paypal just act like arses.. I am pretty sure someone at paypal would have been very aware diaspora was requesting donations.

    [ reply to this | link to this | view in thread ]

  16.  
    identicon
    Anonymous Coward, Oct 19th, 2011 @ 4:37pm

    I'm a fan of dwolla.com. Flat fee, mobile app and regular, and clean, no BS interface.

    [ reply to this | link to this | view in thread ]

  17.  

    Re:

    icon
    Mike C. (profile), Oct 19th, 2011 @ 4:42pm

    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... :-)

    [ reply to this | link to this | view in thread ]

  18.  

    Re: Re: Re: Use PayPal! (Eat At Joes!)

    icon
    Chronno S. Trigger (profile), Oct 19th, 2011 @ 4:45pm

    I can create a donate now button via Google Checkout? I'm not finding that option on the website.

    [ reply to this | link to this | view in thread ]

  19.  

    Re: Re: Re: Re: Use PayPal! (Eat At Joes!)

    icon
    Keith_Emperor_of_Penguins (profile), Oct 19th, 2011 @ 4:50pm

    Here you go:

    http://checkout.google.com/support/sell/bin/answer.py?hl=en&answer=72721

    or alternatively, you can always use flattr.com

    [ reply to this | link to this | view in thread ]

  20.  

    Re: Re: Re: Re: Re: Use PayPal! (Eat At Joes!)

    icon
    Keith_Emperor_of_Penguins (profile), Oct 19th, 2011 @ 4:53pm

    I like AlertPay personally

    [ reply to this | link to this | view in thread ]

  21.  

    Re: Re: Re: Re: Re: Use PayPal! (Eat At Joes!)

    icon
    Chronno S. Trigger (profile), Oct 19th, 2011 @ 4:58pm

    "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.

    [ reply to this | link to this | view in thread ]

  22.  

    Re: Re: Re: Re: Re: Re: Use PayPal! (Eat At Joes!)

    icon
    Keith_Emperor_of_Penguins (profile), Oct 19th, 2011 @ 5:00pm

    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."

    [ reply to this | link to this | view in thread ]

  23.  

    Re: Re: Re: Re: Re: Re: Use PayPal! (Eat At Joes!)

    icon
    Keith_Emperor_of_Penguins (profile), Oct 19th, 2011 @ 5:07pm

    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."

    [ reply to this | link to this | view in thread ]

  24.  

    Re: Re:

    icon
    bjupton (profile), Oct 19th, 2011 @ 5:08pm

    Is that line to get a new one? My old one is all denty.

    [ reply to this | link to this | view in thread ]

  25.  

    Re: Re: Re: Re: Re: Re: Re: Use PayPal! (Eat At Joes!)

    icon
    Chronno S. Trigger (profile), Oct 19th, 2011 @ 5:10pm

    I do not represent a non-profit organization. It's just me and I'm most definitely for profit.

    [ reply to this | link to this | view in thread ]

  26.  

    Re: Re: Re: Re: Re: Re: Re: Use PayPal! (Eat At Joes!)

    icon
    Chronno S. Trigger (profile), Oct 19th, 2011 @ 5:22pm

    "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."

    [ reply to this | link to this | view in thread ]

  27.  

    Re: Re: Re: Re: Re: Re: Re: Re: Use PayPal! (Eat At Joes!)

    icon
    Keith_Emperor_of_Penguins (profile), Oct 19th, 2011 @ 5:27pm

    HAHA! yep, that's what happens when we get an oligopoly by PayPal.

    But hey, you can use Moneybookers

    [ reply to this | link to this | view in thread ]

  28.  

    Re: Re: Re: Re: Re: Re: Re: Re: Use PayPal! (Eat At Joes!)

    icon
    Keith_Emperor_of_Penguins (profile), Oct 19th, 2011 @ 5:29pm

    But If my memory serves me, doesn't PayPal charge money for those kind of for-profit donations anyway?

    [ reply to this | link to this | view in thread ]

  29.  
    identicon
    monkyyy, Oct 19th, 2011 @ 6:01pm

    someone call anonymous

    [ reply to this | link to this | view in thread ]

  30.  

    Re:

    identicon
    Anonymous Coward, Oct 19th, 2011 @ 6:20pm

    but it essencially IS a bank, and many people have actually won against them for violating state laws, holding funds illegally.

    [ reply to this | link to this | view in thread ]

  31.  

    Re: Re: Re: Re: Use PayPal! (Eat At Joes!)

    identicon
    Donnicton, Oct 19th, 2011 @ 6:42pm

    moneybookers.com - not to be confused with moneyhookers.com, a completely different site....

    [ reply to this | link to this | view in thread ]

  32.  

    Re: Re: Re: Use PayPal! (Eat At Joes!)

    identicon
    Anonymous Coward, Oct 19th, 2011 @ 7:27pm

    Ok let's go through the list then.

    digitalriver.com

    [ reply to this | link to this | view in thread ]

  33.  

    Re: Re: Re: Re: Use PayPal! (Eat At Joes!)

    identicon
    Anonymous Coward, Oct 19th, 2011 @ 7:30pm

    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.

    [ reply to this | link to this | view in thread ]

  34.  

    Re: Re: Re: Re: Re: Re: Re: Re: Re: Use PayPal! (Eat At Joes!)

    identicon
    Anonymous Coward, Oct 19th, 2011 @ 7:32pm

    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.

    [ reply to this | link to this | view in thread ]

  35.  

    Re: Re: Re:

    identicon
    Anonymous Coward, Oct 19th, 2011 @ 9:08pm

    Mine is in the form of a Pirate hat!

    [ reply to this | link to this | view in thread ]

  36.  

    Re: Re: Re: Re:

    icon
    That Anonymous Coward (profile), Oct 20th, 2011 @ 12:02am

    Mines shaped like an Admirals hat

    [ reply to this | link to this | view in thread ]

  37.  

    PayPal's Business Model

    identicon
    Prof Allen, Oct 20th, 2011 @ 1:14am

    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

    [ reply to this | link to this | view in thread ]

  38.  

    Re: Re: Re: Re: Re: Use PayPal! (Eat At Joes!)

    icon
    The eejit (profile), Oct 20th, 2011 @ 1:39am

    Accepted? Yes.

    Trusted? Not a fucking chance.

    [ reply to this | link to this | view in thread ]

  39.  

    Re: Re: Re: Re: Re: Use PayPal! (Eat At Joes!)

    identicon
    Anonymous Coward, Oct 20th, 2011 @ 1:49am

    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.

    [ reply to this | link to this | view in thread ]

  40.  

    Re: PayPal are assholes

    identicon
    God, Oct 20th, 2011 @ 3:16am

    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.

    [ reply to this | link to this | view in thread ]

  41.  

    Re: Re:

    icon
    martyburns (profile), Oct 20th, 2011 @ 4:40am

    A prepaid credit card? Is the company you get that from the one receiving credit from you?!?

    [ reply to this | link to this | view in thread ]

  42.  

    Re: Re: Re: Re: Re: Re: Use PayPal! (Eat At Joes!)

    identicon
    Anonymous Coward, Oct 20th, 2011 @ 8:19am

    I still can't shop newegg or ebay using alternatives. Until most stores accept alternatives, paypal is, sadly, the only way to go.

    [ reply to this | link to this | view in thread ]

  43.  

    Re: Paypal still sucks

    identicon
    hothmonster, Oct 20th, 2011 @ 8:20am

    They probably didn't like the free advertising and publicity for Stripe.

    [ reply to this | link to this | view in thread ]

  44.  

    Re: Re: Re: Re: Re: Use PayPal! (Eat At Joes!)

    identicon
    hothmonster, Oct 20th, 2011 @ 8:22am

    "moneyhookers.com" Do they sleep with money? If not that name is extremely redundant.

    [ reply to this | link to this | view in thread ]

  45.  

    Re:

    identicon
    hothmonster, Oct 20th, 2011 @ 8:29am

    No, I don't want him to get my number of caller ID.

    [ reply to this | link to this | view in thread ]

  46.  
    identicon
    Anonymous Coward, Oct 20th, 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.

    [ reply to this | link to this | view in thread ]

  47.  

    Re: Re: Re: Re: Re:

    identicon
    S, Oct 20th, 2011 @ 11:43am

    Tinfoil pith helmet. Oh yeah.

    [ reply to this | link to this | view in thread ]

  48.  

    Re: Re: Re: Re: Re: Use PayPal! (Eat At Joes!)

    identicon
    Anonymous Coward, Oct 20th, 2011 @ 4:11pm

    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

    [ reply to this | link to this | view in thread ]

  49.  

    Re: Re: Re: Re: Re: Re: Re: Re: Re: Re: Use PayPal! (Eat At Joes!)

    identicon
    Anonymous Coward, Oct 20th, 2011 @ 4:13pm

    Have you tried so many others? Or is that just more of your paranoid opinion?

    [ reply to this | link to this | view in thread ]

  50.  

    Re: Re: Re: Re: Re: Re:

    icon
    That Anonymous Coward (profile), Oct 20th, 2011 @ 6:46pm

    Oh the humanity... you just summoned tinfoil Koolaid man!
    RUN!!!!!!!!!!

    [ reply to this | link to this | view in thread ]

  51.  

    Re:

    icon
    vancedecker (profile), Oct 21st, 2011 @ 8:59am

    It's really big in the underworld. My drug dealer won't take anything but...

    [ reply to this | link to this | view in thread ]

  52.  

    Re: Re: Re: Re: Re: Re: Use PayPal! (Eat At Joes!)

    icon
    chris (profile), Oct 24th, 2011 @ 7:38am

    "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.

    [ reply to this | link to this | view in thread ]


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