Paypal Deals Blow To Freenet

hankaholic writes "I was checking into the latest progress of the Freenet project when I noticed a disturbing note on their homepage: 'Paypal has frozen the account we use to accept donations over the web, they refuse to give any reason other than "use of an anonymous proxy" [...] all of the projects subscriptions have been canceled which is a significant setback. Other means of accepting donations, including E-Gold, are still active.' Paypal is sending them a check for their remaining balance. The news update on the Freenet homepage also includes contact information for some people at Paypal."

Comments

PayPal problems

[Lordofohio]

Paypal is certainly a shady company. To find out why, go to www.paypalsucks.org

Contact Paypal

[Lehk228]

From the Freenet page

If you are concerned about whether your account might be at risk due to your political opinions you may wish to speak to their PR contact Hani Durzy at (408) 376 7458. If you are an investor and you would like to see what other political opinions Paypal doesn't like, you may want to speak to their Investor contact Tracey Ford at (408) 376 7205.

Sad, but unsurprising....

[King_TJ]

PayPal has grown increasingly hostile towards anyone accepting payments via their service if they do anything "out of the ordinary". Not long ago, I heard about a woman complaining because her PayPal account was suspended after she accepted donations to help keep her "size acceptance" web site going. (PayPal seemed to be afraid it was pornography-related in some way, since you had a female collecting money from her personal web site.) In reality, she was trying to boost the self-esteem of overweight women and let them know about events where they could meet guys interested in larger women.

They're also scared of anyone or any business that doesn't provide full disclosure of their whereabouts (complete address, phone/contact numbers, and so on). To put it in perspective though, don't forget they're just one of the arms of eBay nowdays - so their primary interest is simply being a facilitator for their own auction buyers and sellers to complete transactions. If you even so much as look vaguely like you do things in a similar way to eBay auction scammers, you'll get cut off in an instant.

Re:Must have been considered a liability

[chronus22]

Paypal does have a habit of scamming its customers. Attrition.org has a good article about one person's experience here.

No problems in the last year

[LPrime]

I run a mid-sized jewelry shop on the web and have been using paypal for over a year. I actualy switched from using MerchantServices because of the constant headache with fraud and chargebacks. As much as people hate to hear it, PayPal is on the side of the merchant not the customer and in 9 cases out of 10 (at least for me) the customer is the one trying to screw me over. Before I get flamed, I would like to say that I am in no way trying to deffend their actions in this case, however I have learned that their verification techniques are always based on some specific activity.

Simple - Use NetworkForGood.org

[Anonymous Coward]

Paypal does suck sometimes, and they do have many examples of using dubious business practices. So what? Big deal. I don't think they lost any money, did they? Why doesn't Freenet just publicize that they can accept money through NetworkForGood.org? From their website:

Network for Good is the Internet's leading charitable resource -- an e-philanthropy site where individuals can donate, volunteer and get involved with the issues they care about. The organization's goal is to connect people to charities via the Internet -- using the virtual world to deliver real resources to nonprofits and communities.

Founded in 2001 by the Time Warner Foundation and AOL, Inc.; the Cisco Foundation and Cisco Systems, Inc.; and Yahoo! Inc., Network for Good is an independent, 501(c)(3) nonprofit organization headquartered in Vienna, VA.

In addition to connecting the public with opportunities to give, Network for Good works to advance nonprofit adoption of the Internet as a tool for fundraising, volunteer recruitment and community engagement. It represents a groundbreaking partnership with leading technology and media companies and more than 20 nonprofit foundations and associations who share the desire to foster the informed use of the Internet for civic participation and philanthropy.

You can donate to their 501c3 organization here, I believe.

Re:Slashdot Uses PayPal

[zenyu]

PayPal, you are free to consider me a "lost customer" at this point. I will take my business elsewhere.

Easier said than done, they like to consider you a customer for life. I loged on once and found that they wanted me to agree to a new user agreement which I found objectionable. Well when you call them up they transfer you to different agents who all say they can't close your account unless you accept the agreement. Very Kafkaesque, consider yourself lucky and wise if you never accepted the $10 sign-up bonus. Now I have to change my regular bank so that they don't have any current information and another security breach there can't haunt me.

Not if you use a service like MBNA's "ShopSafe"

[RKBA]

Not if you use MBNA'a "ShopSafe" credit card service. Please note that I have no vested interest in MBNA whatsoever, except as a happy customer. If you have a regular MBNA credit card, what MBNA does is provide software you can install on your computer that automatically connects up to their credit card "NetAccess" service (you have to log in with name and password each time) and lets you generate "disposable" credit card numbers as needed (much like Spamex.com does with their disposable email address service that I also use :-).

I generate a new credit card number for each and every Internet transaction, and the MBNA ShopSafe software lets me set the maximum amount that can be debited to each disposable credit card number as well as the expiration date (up to one year in the future). The way I handle PayPal is to generate a disposable credit card number with an expiration date of one year and a reasonable credit limit (say $500 for example, or whatever you want). If I were to ever want to rescind my credit card information from PayPal, I do not even have to contact PayPal at all - I just start up the ShopSafe software and tell it to delete the particular disposable credit card number that I provided to PayPal so that no further charges can be charged to that account number. I'm very surprised that as far as I know, MBNA is the only one who provides this type of service, so they have no competition in this area.