PayPal under fire over donations block

In .net 221, we reported on PayPal 'burning' conferences, endangering them by locking accounts or keeping massive cash reserves from an account holder, ostensibly to protect ticket buyers. Reports have now surfaced about a PayPal PR blunder that has shut down accounts belonging to Regretsy.

The blog had collected a Santa fund, with the aim of organising a gift drive for children "in the Regretsy community who might not get much otherwise". Having raised a considerable sum, PayPal limited access to the account and demanded Regretsy pay back donations, on the basis that it used a 'donate' button rather than a 'buy now' one or a shopping cart. A further post on Regretsy, if accurate, suggests PayPal's representative offered some curious feedback, not least that Regretsy's actions weren't a "worthy cause", and allegedly stated: "You can use the donate button to raise money for a sick cat, but not poor people." The blog owner's personal account was then also frozen for six months.

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