PayPal to Fine Gambling, Porn Sites

scubacuda writes "Yahoo! reports that PayPal is taking an aggressive stance against gambling, adult, and non-prescription drug sites: anyone caught using PayPal for these purposes will be charged $500. Eric Jackson, a former PayPal executive and author of the new book 'The PayPal Wars,' calls the new policy 'draconian' and says it is likely a two-fold strategy to discourage certain behavior while heading off regulators."

Comments

Who cares? There are other services out there.

[ellisDtrails]

Use FIREPAY or NETTELLER (google them for info). They are RELIABLE and they aren't interested in being Big Brother or monitoring your online habits.

F Pay Pal.

Re:Who cares? There are other services out there.

[McDutchie]

Use FIREPAY

"FirePay is a Web-based cash account that can be used by anyone who has a U.S bank account." Woops, I'm in the Netherlands and I need to accept payments in euros. <sigh> Next...

or NETTELLER (google them for info).

Their site is so utterly content-free and/or badly designed I cannot even find a sign-up link or terms of service, so I have no way of knowing if they'd even accept me. But I doubt it since there's no reference to international accounts anywhere. Also it seems they cater to financial institutions and not mere mortals like me.

Seems PayPal is still the only choice I have. But if anyone has any other suggestions I'd appreciate them.

Re:Ebay does have Adult items

[tukkayoot]

Are Mastercard, Visa or American Express taken any less seriously because they can facciliate the purchase pornography? How about First Union bank?

I don't think so.

No, like the article/summary says, I think this has something to do with regulatory pressure. I really don't understand all the fuss, but I think it has something to do with the fact that PayPal isn't a bank, and thus has a different set of regulations/laws it has to abide by.

Offhand I don't see why PayPal should be restricted in this manner, and why they should feel compelled to levy these fines, but IANAL or anything.

Re:Ebay does have Adult items

[mcknation]

Well I did some *research* on this topic just now. ;)

Ebay hides all adult items in a catagory called "Mature Audiences". There is all kinds of stuff in this catagory. Sex toys. Elargement pills all kinds of stuff.

However not ONE single auction in this catagory allows paypal as a method of payment. My guess is that the forbid it entirely...even on ebay

/-McK

Probably an unenforceable penalty clause.

[Animats]

Private parties cannot assess fines. From a New York court decision:

• The rule is now well established. A contractual provision fixing damages in the event of breach will be sustained if the amount liquidated bears a reasonable proportion to the probable loss and the amount of actual loss is incapable or difficult of precise estimation. If, however, the amount fixed is plainly or grossly disproportionate to the probable loss, the provision calls for a penalty and will not be enforced. In interpreting a provision fixing damages, it is not material whether the parties themselves have chosen to call the provision one for "liquidated damages", as in this case, or have styled it as a penalty. (citations omitted.) Such an approach would put too much faith in form and too little in substance. Similarly, the agreement should be interpreted as of the date of its making and not as of the date of its breach.

  (Truck Rent-A-Center, Inc. v Puritan Farms 2nd, Inc., 41 NY2d 420, 425 [1977]; see Fingerlakes Chiropractic, P.C. v Maggio, 269 AD2d 790 [4th Dept. 2000]; Benderson v. Poss, 142 AD2d 937 [4th Dept. 1988]; Pyramid Centres & Co. v Kinney Shoe Corp., 244 AD2d 625 [3d Dept. 1997].)

It's up to a court to decide whether $500 is proportional to the actual loss incurred by PayPal. You usually don't get to count administrative time as costs in contract disputes; it has to be an outside expense.

Re:Pissing off your Enemies for $10.00

[LordK2002]

Your enemy will be fined $500.00 for just $10.00 and a few emails. Not a bad return on investment, eh?

And so will you, if you read the Acceptable Use Policy.

This is not an issue of fining just websites, it is an issue of fining users, as has been pointed out in other comments.

This is what makes it unacceptable and is why I have chosen to discontinue my use of PayPal.

K