Limited 180 days for donations for payment of food
PayPal limited my account for 180 days. They claimed that I violated their user agreement. Said that people making donations for payment of food for a social party of a group of swingers (no sex happening, just a place for like minded people to meet) was a violation of their user agreement. Specifically, using Paypal to accept payments for “certain sexually oriented materials or services or for items that could be considered obscene.” What those certain sexually oriented materials or services are or what is considered obscene is not defined in their user agreement. How would one know they are in violation if nothing is defined? They put a hold on just over $2,000. So the next day, we contacted our participants and told them we would refund their money and figure out another way for them to pay for their food. We refunded everything up to just under $900. We hadn’t heard from everybody, so we didn’t refund everybody. We should have! The next morning PayPal
had found my wife’s account and then suspended BOTH accounts. She uses that one to sell on eBay and has current listings. Paypal said that because we had multiple accounts, had violated a user agrrement, and more issues (fraud), that they were closing all our accounts. They disabled us to make any refunds. I should have just refunded everything and dealt with it later. Not sure what to do now.
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Posted: July 23, 2012 at 3:43 pm
Just out of curiosity, how did PayPal know it was a group of Swingers (no sex happening) that was collecting money for food for a social event?
The people that did not receive a refund can just file a dispute and paypal will refund them their money. It really sucks how the also shut down your wifes account as well. There is no winning with paypal, if there is no reason for limiting someones account they will make one up. Their user agreement is ALWAYS in their favor and offer no protection to their users.
How did they discover it was a group of swingers from food donations? I also don’t understand why they didn’t verify the business type prior to approving the account. What i believe they do is approve all and once you process they hold your money to make themselves richer. There is never a wining end to the battles with paypal. It always seems to be lose/lose for their customer and a win/win for them