News for hackers. Stuff that matters.
Re:PayPal Starts Banning VPN and SmartDNS Services by jdietrich on Saturday February 06, 2016 @12:04PM (#11048526)
Until quite recently, they offered the only way of accepting credit cards without a written application and a substantial security deposit. In many countries, they're still the only realistic option.

The "problematic behaviour" you describe is invariably related to the fraud prevention mechanisms required to offer their service. That's the deal - Paypal are incredibly liberal in opening accounts, but they reserve the right to freeze an account pending investigation if something looks sketchy.

Paypal still fills a very useful role. I've used their services to receive payments for over a decade without incident.

Re:PayPal Starts Banning VPN and SmartDNS Services by preinheimer on Saturday February 06, 2016 @01:21PM (#11048939)
I run a small business in Canada, and a hundred times this. For a long time my options were: PayPal, or sign a contract with a bank to get a binder with some instructions to use a horrible API. There may have been some weird options like e-gold, but nothing I could pitch to a business user. PayPal was easy to set up, captured credit cards so I didn't need to think about PCI, and did a non-zero amount of work to block fraud. We've since migrated to start preferring Stripe over PayPal, but it was Paypal all the way for the first 5 years.

Stripe only launched in Canada late 2012: https://stripe.com/blog/stripe-in-canada So did braintree: https://www.braintreepayments.com/blog/braintree-in-europe-a...

And we're america's hat. Many countries are still bereft of options.

(disclosure: I'm now a stripe employee, opinions are my own)

Re:PayPal Starts Banning VPN and SmartDNS Services by gcb0 on Saturday February 06, 2016 @01:53PM (#11049128)
it's not because paypal is better.

paypal is only relevant because they invented the uber-way. They ignore all legislation. push away. and nobody makes them accountable for anything.

they are pretty much a bank for free

Re:PayPal Starts Banning VPN and SmartDNS Services by dangrossman on Saturday February 06, 2016 @06:01PM (#11050440)
> They ignore all legislation. They are pretty much a bank for free.

They're more regulated than all but a handful of international banks, and it's not at all free.

PayPal is a licensed money transmitter in all 50 states, the District of Columbia, the US Virgin Islands and Puerto Rico. Most of those states have bond requirements for MTAs, typically six figure deposits. They're subject to 52 different regulatory agencies in the US, in addition to Regulation E consumer protections and the USA Patriot Act federally. Their US<->international transfers are overseen by the U.S. Department of the Treasury’s Office of Foreign Assets Control like any bank. They're not an ordinary bank in the US only because many years ago a judge ruled that they don't qualify to be one by the nature of their business; they tried unsuccessfully to be licensed as one in order to get FDIC insurance on deposits.

They are a licensed bank in all of the EU, with a bank charter in Luxembourg, regulated by the Commission de Surveillance du Secteur Financier. In Australia, they're licensed by the Australian Securities and Investments Commission as a financial product and by the Australian Prudential Regulation Authority as a purchased payment facility provider, which is a type of authorized depository institution (i.e. bank). In most of southeast Asia, they operate under their subsidiary PayPal Pte. Ltd. which is a licensed stored value facility regulated by the Monetary Authority of Singapore. They operate in 203 markets in total, most of which have separate financial regulations and regulatory bodies PayPal has to comply with.

https://www.paypal.com/webapps/mpp/licenses

Re:PayPal Starts Banning VPN and SmartDNS Services by gcb0 on Sunday February 07, 2016 @10:44PM (#11056240)
exactly, they have the minimum required licenses to not be shut down.

go see how many other licenses and laws you have to comply to open a proper bank with a branch in any of those states.

Re:PayPal Starts Banning VPN and SmartDNS Services by rbobby on Saturday February 06, 2016 @06:38PM (#11050612)
I used 2checkout.com for years and years for a small business in Canada. Switched to Beanstream.com years ago (lower fees, but doesn't accept amex in usd).

I'd never use or recommend paypal for any business. Their history of seizing funds, freezing accounts, and pulling money from bank accounts is atrocious.

Re:PayPal Starts Banning VPN and SmartDNS Services by jrcii on Saturday February 06, 2016 @07:30PM (#11050846)
> but they reserve the right to freeze an account pending investigation

In reality their processes for investigating are often a neverending nightmare that punish innocent people, or in this case are hampering one of our only hopes for reasonably secure mobile communications: http://neo900.org/news/paypal-trouble-delays-project

Re:PayPal Starts Banning VPN and SmartDNS Services by themartorana on Saturday February 06, 2016 @02:05PM (#11049177)
There's no pending investigation and no appeals process at all. This is the part that annoys me so.
Re:PayPal Starts Banning VPN and SmartDNS Services by cft on Saturday February 06, 2016 @03:15PM (#11049594)
This is related to the fear of big copyright owners going after PayPal for contributory infringement. It has nothing to do with fraud.

I am not sure who to blame: the PayPal management or the viscios copyright regime, where a company with the legal resources of PayPal is still afraid.