PayPal Still threatens $2,500 fees, despite some confusion over the new user agreement. A user agreement was reportedly sent in error that threatened a fine if a user was “promoting misinformation.” The real user agreement allows PayPal essentially the same power, but the terms use slightly different language.
Paypal’s new Acceptable Use Policy (AUP) allows them to directly penalize users by taking money directly from their accounts. The statement reads, “Violation of this Acceptable Use Policy constitutes a violation of the PayPal User Agreement and may subject you to damages, including liquidated damages of $2,500.00 U.S. dollars per violation, which may be debited directly from your PayPal account(s). ”
The former president of PayPal, David Marcus tweeted, “It’s hard for me to openly criticize a company I used to love and gave so much to. But @PayPal’s new AUP goes against everything I believe in. A private company now gets to decide to take your money if you say something they disagree with. Insanity.”
Paypal has the power to restrict access to your business, ban you, or fine you for at least $2,500 per violation and the reason can be merely that your business has received complaints. It is up to PayPal to decide if something has false or misleading information, and if they make that decision, the company has the power to hurt a small business or destroy it entirely.
Image by Mariia Shalabaieva from Unsplash