by Mike Masnick
Wed, Oct 19th 2011 2:52pm
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.
If you liked this post, you may also be interested in...
- PayPal Stops A Payment Just Because The Payee's Memo Included The Word 'Cuba'
- PayPal Continues To Drive People To Bitcoin And Other Solutions As It Starts Cutting Off VPNs & Open Internet Solutions
- Insanity: PayPal Freezes Mailpile's Account, Demands Excessive Info To Get Access
- Google Looks To Cut 'Funding' To 'Illegal' Sites It Doesn't Fund In The First Place
- PayPal Freezes Funds Of Famed Swedish ISP Twice