A lot of merchants (e.g. Amazon) don't use PayPal because is isn't a real bank, and so isn't beholden by laws associated with banks. The terms of service state that you cannot seek any legal recourse from them should your account be shut down.
How could this affect a VPS provider? Say a customer hosts a porn site, or a gun-selling site, or something else PayPal disagrees with. PayPal shuts the merchant's account down for it. Now the merchant's funds are frozen for an indeterminate amount of time till the issue can be resolved, if at all, and there's nothing they can do about it short of appealing to PayPal.
Re:Linode hacked again?
by raverbashing on Sunday January 19, 2014 @03:05PM
(#7085741)
Exactly
I am very sympathetic to anyone not wanting to use paypal for these reasons.
It is too big a risk, especially for something like a VPS provider that needs the recurring payments.
Re:Linode hacked again?
by notastartup on Sunday January 19, 2014 @02:57PM
(#7085711)
yeah but when I couldn't use my credit card anymore paypal was the only option.
curious, what do use the $5 servers for?
Re:Linode hacked again?
by notastartup on Sunday January 19, 2014 @02:57PM
(#7085715)
the same way I used linode for but at 4 times the less cost.
what really made me move away from linode is really their inability to accept paypal.
Luckily, digitalocean accepted paypal. Also their $5 servers cannot be beat.
Sure, linode has some good panels but it was more than I can chew and more than I needed. Digitalocean also had a good amount of docmentation to do everything I needed without filing a ticket.