PayPal ruins Christmas for over 200 kids

first_imgRegretsy describes itself as the “fail blog of hand crafts” with posts featuring items taken mainly from Etsy. The gallery holds images of some of the weirdest, most odd, and down right awful items people are trying to sell through the Etsy marketplace. Some of them are just hilarious or leave you a little dumbfounded as to why they ever got made.This year Regretsy has tried to do something nice for Christmas by buying presents for kids in need and creating a gift exchange program. In total, more than 200 kids were set to receive gifts and even some cash due to how successful the campaign had been. However, what looked to be a very happy Christmas for lots of kids has now been completely ruined by PayPal.In order to collect money for the gifts, Regretsy added a PayPal Donate button to their site. According to PayPal, that button can only be used by a nonprofit, even though the terms and conditions state worthy causes qualify too, which this seems to be. PayPal didn’t agree though, and shut down the account with all the money in it. Regretsy cannot access the money and therefore cannot use it for the kids.It gets worse. In order to unlock the account PayPal has insisted Regretsy refund all the donations made and cancel any purchases that haven’t been processed yet. If Regretsy wants to close their PayPal account completely, they must send a letter admitting that what they did was wrong and asking permission to close the account.We have yet to hear PayPal’s side of the story, and we may never see them divulge the full details publicly, but so far this doesn’t make much sense. Regretsy has been flagged as breaking some of PayPal’s rules and all their money has been locked down. It could remain locked for 6 months. PayPal also extended the account block to Helen Killer’s personal account as well as the Regretsy one she administers.The real kicker is the fact that PayPal gets to keep the money it made from the transactions and donations. As Killer points out in her post, PayPal took a portion of the donations, collected a fee from every gift Regretsy bought, and a further fee on each transaction processed. None of that money will be given back even though the service is forcing Regretsy to issue refunds.Check out the link below for the full story including an unbelievable conversation with a PayPal representative that includes the statement “We know what you’re doing and we’re through playing games with you.”Read more at RegretsyUpdate: PayPal have understandably heard about the coverage this issue is getting and have contacted us about it. Here’s what we received by way of a PayPal respresentative:“We can’t comment specifically on the account due to our privacy policy. However, we can confirm that the funds have been released and we are working directly with the account holder on this matter. We are also making a donation to Regretsy to help families in need this holiday season.  We’re very sorry this occurred.For reference, we have clear guidelines for any business who uses PayPal to accept donations. For example, we require certain documentation to prevent misuse of the donated funds and, if the recipient claims charitable status, to determine whether they are properly registered.  As a regulated payment service, we’re also required by law to follow these guidelines.We appreciate that this can be an inconvenience, but we have a responsibility to all our customers – both donors and recipients; or buyers and sellers. In this instance, we recognized our error and moved as swiftly as possible to fix it.”last_img read more

Continue Reading