The reason given was "Under the Acceptable Use Policy, PayPal may not be used to send or receive payments for certain sexually oriented materials or services or for items that could be considered obscene". This is wrong/false on so many levels. We used PayPal only as a means to receive voluntary donations from people who wanted to support further development of Voat and to help pay for our hosting fees. This is beyond crazy.
According to PayPal User Agreement, our funds can be kept by PayPal for 180 days. I requested further clarification from PayPal, but I would like to advise everyone who planned to donate to Voat - to NOT do so via PayPal.
Honestly, I don't know what I expected when I trusted PayPal with our donation money. I apologize to everyone who donated to us through PayPal and I will badge everyone who did so even if the funds are never released by PayPal.
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HorzaDeservedBetter ago
Can't say I wasn't expecting it. Still, that sucks.
What happens after? Is the money refunded or sent to your bank account?
nikolak ago
You get the money transferred into your paypal/bank account.
It's usually done with new services that get larger amounts of money, or for new digital services, or if your account gets fair amount of chargebacks. It's basically done to protect both customers and paypal from scams.
It also probably has something to do with the fact that it's a donation to a website that can link to pretty much anything. If they sold something e.g. subscription, it might be a different procedure.