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.

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Companies: diaspora, paypal, stripe

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Comments on “PayPal Freezes Diaspora's Account”

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Keith_Emperor_of_Penguins (profile) says:

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

chris (profile) says:

Re: Re: Re:4 Use PayPal! (Eat At Joes!)

“” 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 the also have an app store.

Keith_Emperor_of_Penguins (profile) says:

Re: Re: Re:4 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.”

Keith_Emperor_of_Penguins (profile) says:

Re: Re: Re:4 Use PayPal! (Eat At Joes!)

you can also try amazon simple pay:

“Amazon Simple Pay is a payment-only service that allows your customers to use payment information from their account to pay for digital goods, services, donations, subscriptions and marketplace transactions. Your customers use payment methods stored in their accounts to complete payments on your website.”

Anonymous Coward says:

Re: Re: Re:7 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.

Anonymous Coward says:

Re: Re: Re:2 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.

Anonymous Coward says:

Re: Re: Re:3 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.

Ikarushka (profile) says:


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….

B's Opinion Only (profile) says:

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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