More and more stories are coming out about PayPal refusing to hand over ticket sales money or donations to event planners and start-ups. This freezes operations for the organizations that need the money. PayPal has reported that it is part of their anti-crime, anti-fraud practices, but to the watchers of all things Internet, it seems like no-one is at the wheel of the electronic payments goliath. Either that, or they have a very strange investment scheme happening that requires tying up their cash stores for months on end.
The latest complaint is chronicled on VentureBeat, and is sure to get quite a few hits. PayPal’s draconian (and perhaps illegal) methods are leaking out to the mainstream. This means people like me and less-savvy others will get the “PayPal is bad” message and avoid using it. PayPal already has a bad phishing email PR problem to overcome and it certainly doesn’t need the image that it won’t release funds.
See how Paypal is screwing up crowdfunding over at Venture Beat. Federal investigation, anyone?