Paypal Freezes Deadspin Fund For Slain Soldier

Apparently Deadspin doesn’t read the Consumerist, or they’d know that PayPal sucks. Sadly, they used Paypal to set up a fund for a slain soldier. From Deadspin:

    They set up the initial Paypal account as a “charitable organization” account. (We do not know why they did this. We did not ask them to.) Because of this, they require “documentation of non-profit tax-exempt status.” Because Deadspin is not, in fact, a non-profit organization (though we wouldn’t exactly call us a “profit” organization either) , the compliance department has decided that the funds are to be frozen for “180 days.”

    If we would have known Paypal was so awful, we wouldn’t have used them. We won’t make the mistake again.

Sigh. All that’s in the past now, isn’t it? Let’s help Deadspin in true Consumerist fashion.

Let PayPal know what you think, or call them up: 402-935-2050. —MEGHANN MARCO
Paypal Doesn’t Want Slain Soldiers’ Families To Receive Aid [Deadspin]

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Edit Your Comment

  1. AlteredBeast (blaming the OP one article at a time.) says:

    As part of a family of eBay Powersellers, I often say “Paypal protects the buyers, screws the sellers.”

    I don’t use it for any transactions that are going to be over $100.

  2. AcilletaM says:

    It’s also been Dugg.

  3. timmus says:

    Wasn’t there some charity fund (the one on, I think, after Katrina) that was shut down by Paypal? I seem to remember that caused a stir.

  4. Timmus, if you read the post, it is clear that Deadspin never asked for the Paypal account to be set up as a non-profit. Paypal did that on their own and now the money is in accessible b/c Deadspin isn’t a non-profit. That is the real issue.

  5. homerjay says:

    Amen, AlteredBeast. Paypal is far too powerful and needs to be put in their place. But how…..

    Okay, that may be a little TOO drastic.

  6. rbenchley says:

    I’ve also submitted the story to Slashdot. As the story involves an online transaction company, it’s important for the tech community to spread word of incidents like this.

  7. You have to love organizations that can act as banks, but are not subject to the same regulations. Fun stuff.

  8. Tuffy says:

    Thanks, Meghann; I owe you a beer next time I pass you in the pub. I’ll pay in cash, just to be safe.

  9. Nygdan says:

    Since they make you select a category and sub-category, and ‘useless jerks’ wasn’t one of either, I selected the company information line, and asked if PayPal was actually working WITH the terrorists. I mean, this guy dies, and then an idiotic policy makes his death even MORE difficult for his friends, family, and fellow soldiers who are in a warzone?


  10. Coronagold says:

    Maybe we ought to sic the NYFD on PayPal. Suffocate them in flag stickers & whatnot.

  11. bex says:

    Something is fishy here. I am not a paypal support by any stretch, I had to fight to get my non-profit’s account unfrozen a couple of years ago.

    However, as I have a 501c(3) non-profit and would want to take advantage of reduced fees, I emailed paypal to see if I could get the deal they are threatening these guys with. My response doesn’t add up .. what gives?

    Hello my name is Jonnae, I will be happy to assist you with your question
    regarding Non-Profit Organizations.

    PayPal is very pleased that you are considering our service as a way to
    accept donations on your site. At this time, we have not yet developed a
    program specifically for Non-Profit organizations. In the interim, you may
    wish to open a PayPal Business Account by clicking or copy and paste the entire link into the
    address bar.

    Thank you for using PayPal for your online payment needs.

    PayPal Business Support
    PayPal, an eBay Company

  12. AmandaPayPal says:

    The account associated with the Adam Knox Fund is open.

    Like banks, PayPal is required to follow all state, federal and international laws around charitable giving. While the vast majority of people that use PayPal to accept donations have good intentions, unfortunately, there are people out there who take advantage of certain situations. We have policies in place, like those relating to charities, to protect our users and ensure that their donations do indeed go to charities. For this reason, PayPal asks for proof of charity status.

  13. Seacub says:

    Thank you, Amanda!