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.


Reader Comments (rss)

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  •  
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    Jay (profile), Oct 19th, 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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    identicon
    Anonymous Coward, Oct 19th, 2011 @ 2:56pm

    It mystifies me that people actually use Paypal.

     

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

      Re: Use PayPal! (Eat At Joes!)

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

       

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        Keith_Emperor_of_Penguins (profile), Oct 19th, 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

         

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

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

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

           

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          :Lobo Santo (profile), Oct 19th, 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

           

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

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

            Go with ccnow ;-P

             

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            identicon
            Donnicton, Oct 19th, 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....

             

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              hothmonster, Oct 20th, 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.

               

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                chris (profile), Oct 24th, 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.

                 

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          identicon
          Big Al, Oct 19th, 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.

           

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          Chronno S. Trigger (profile), Oct 19th, 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.

           

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            Keith_Emperor_of_Penguins (profile), Oct 19th, 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

             

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              Chronno S. Trigger (profile), Oct 19th, 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.

               

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                Keith_Emperor_of_Penguins (profile), Oct 19th, 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."

                 

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                  Chronno S. Trigger (profile), Oct 19th, 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), Oct 19th, 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."

                 

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                  Chronno S. Trigger (profile), Oct 19th, 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."

                   

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                    Keith_Emperor_of_Penguins (profile), Oct 19th, 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

                     

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                    Keith_Emperor_of_Penguins (profile), Oct 19th, 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?

                     

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                      identicon
                      Anonymous Coward, Oct 19th, 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.

                       

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                        Anonymous Coward, Oct 20th, 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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          identicon
          Anonymous Coward, Oct 19th, 2011 @ 7:27pm

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

          Ok let's go through the list then.

          digitalriver.com

           

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            identicon
            Anonymous Coward, Oct 19th, 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), Oct 20th, 2011 @ 1:39am

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

              Accepted? Yes.

              Trusted? Not a fucking chance.

               

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              Anonymous Coward, Oct 20th, 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.

               

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                Anonymous Coward, Oct 20th, 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.

                 

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              Anonymous Coward, Oct 20th, 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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        identicon
        Anonymous Coward, Oct 19th, 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), Oct 21st, 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, Oct 19th, 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, Oct 20th, 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.

       

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    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?

     

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    Ikarushka (profile), Oct 19th, 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), 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?

     

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      Mike C. (profile), Oct 19th, 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... :-)

       

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      Anonymous Coward, Oct 19th, 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.

       

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    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.

     

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    monkyyy, Oct 19th, 2011 @ 6:01pm

    someone call anonymous

     

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    Prof Allen, Oct 20th, 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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  •  
    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.

     

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