website WARNING TO ADMIN: Paypal Bans for 'Donate' buttons!

[Chuckun]

Being a webmaster myself, and having noticed you have a 'donate' sidebar module, I thought I would warn you..

 

Paypal have been known to ban users (and withhold all your paypal balance) for using a 'donate' button, when you are not a registered charity..

 

Instead of a donate button, they say you must use a real payment button.. In this case, you'd have a "Chip in for our server costs" - with a PAYMENT button that PayPal will tax you on (about 20% or something hideous)..

 

Your VIP system is safe, as the members are paying for something, rather than donating.. Providing it uses the payment system and not the donate system >.<

 

Apparently paypal dont tax donations because it was intended as a charity thing, and unless you're a registered charity, they can (and have) frozen accounts and kept the money..

 

EDIT: This is why you're seeing more and more "Buy me a drink!" paypal icons on people's blogs etc, instead of donate buttons these days..

 

Chuckun

Edited September 12, 2010 by Chuckun

[JoeDirt]

Never heard of anyone having their paypal frozen because they had donation button on there, definition of donation is gift without a return consideration. I know they banned peoples accounts where they actually set up a fake charity for Haiti earthquake and there was one girl here in Ontario that had a fake charity for fight against cancer but I don't see them banning anyone because they ask for a contribution to run a site or server. If they were banning people for using word donate then they would open themselves for a major legal action.

[ohurcool]

your new sig pwns joe

[Duckie]

Sounds silly... I figure it was just a service they provide... what else is paypal for... lol

[Chuckun]

I know people who have had their account frozen for asking for donations on their websites.. I didn't believe it when I first read it HERE, until it happened to a colleague.. Apparently PayPal only allow tax-free 'donations' to donatable charities..

 

I've run websites with donate buttons up until now, for a long time.. And I've not been banned.. but maybe it's only when someone reports it to paypal or something? I'm not sure.. But by all accounts, it does happen..

 

Either way, you're free to do whatever you want, I just don't have the conscience to not let people know about things like that, whatever course of action they take afterwards.. So I thought I'd post..

 

EDIT: By the way, it's for using the tax-free donate system, not the word 'donate'.. They got that wrong in the article!

Also, I make no personal claim of experience.. It could well be a load of bull.. I just thought I'd make you aware so you can investigate yourself Personally I keep my free services free and my paid services paid, so I dont have to worry about it

 

Chuckun

Edited September 12, 2010 by Chuckun

[JoeDirt]

After some checking only people that get banned are the ones that are misrepresenting themselves as charities.

[Chuckun]

Oh okay >.< Sorry for the false alarm then.. Still, good to be on the safe side Glad it's not an issue

 

Chuckun

[Duckie]

After some checking only people that get banned are the ones that are misrepresenting themselves as charities.

 

Lol now i could see them banning for that...

[daredevil]

Any tips on our forum and website SEO will be useful.

[Chuckun]

I'll be sure to let you know if I see anything I'd change

 

The IPB SEO mod works pretty well for onsite SEO though.. Offsite is key too..