Regretsy Issue Resolution

PayPal_Olivia
Moderator
Moderator

Hello everyone,

 

Thank you to everyone who communicated regarding the issue of Regretsy.com. We appreciate your feedback!

 

Please view the following PayPal Blog post for more information: Regretsy Issue Resolution

 

I am merging the conversation together in this thread so everyone can find their answers in one place. Thank you for your time and attention!

 

Olivia

If this post or any other was helpful, please enrich the Community by giving kudos to its author, accepting it as a solution, and/or coming back to assist others. Members make this Community great!
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15 REPLIES 15

StMarc
Contributor
Contributor

PayPal has the authority under its TOS to freeze any and all accounts you try to solicit donations with and they can and will do it at will. If you argue with them they will freeze your personal account just to teach you who's boss. They do not answer to anybody. Please reconsider using PayPal for donations or charity work of any kind unless you are a registered non-profit entity. And you hate Christmas.

 

http://www.regretsy.com/2011/12/05/cats-1-kids-0/

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tarotgirl
Contributor
Contributor

I realize Regretsy isn't loading all the time so here's the most recent update: 

 

As you know, we have been trying to buy Christmas presents for kids in the Regretsy community.

We took many applications, vetted them carefully and set about creating a giant gift exchange program, where you could buy a gift for the over 200 children we’re helping.

We raised so much money that we found ourselves in a position of not just being able to send toys, but to send a monetary gift to the families as well. We hoped it might help them make their holiday dinners more special, or maybe pay a pressing bill.

PAYPAL SHUT IT DOWN

Apparently we made the mistake of using the “Donate” button, which Paypal is now claiming is only for nonprofit organizations to use. They froze the account, which also includes Zazzle money that we use to make emergency gifts. That money isn’t in issue, but what the **bleep**! Might as well keep everything!

So last night, I decided to go about this a different way. Since these toys are already purchased, I decided to offer them up for sale on this site, just like any other retailer would. You could buy them according to what you wanted to spend, and we would send them on to the recipient of your gift, just like any other retailer.

PAYPAL SHUT IT DOWN

After a very long and jaw-dropping conversation with an incredibly condescending representative, they have decided that I must refund all the donations and purchases that have not been processed. If you don’t get a refund, it’s because we got your money before they got smart and kept us from helping children at Christmas, which is really the best move any corporation can make.

Here are a few highlights from our conversation:


YOU CAN ONLY HELP CATS

PAYPAL: Only a nonprofit can use the Donate button.
ME: That’s false. It says right in the PDF of instructions for the Donate button that it can be used for “worthy causes.”
PAYPAL: I haven’t seen that PDF. And what you’re doing is not a worthy cause, it’s charity.
ME: What’s the difference?
PAYPAL: You can use the donate button to raise money for a sick cat, but not poor people.

YOU HAVE TO START A NEW WEBSITE

ME: The problem is I’ve already bought all of these toys, so now I’m really in a position like any other merchant – which is to say, I have inventory I need to sell. Why can’t I sell them as gifts, like any other retailer?
PAYPAL: Don’t you think it would look suspicious if the same people bought them again?
ME: Why? These are my customers!
PAYPAL: If you wanted to do that, you’d have to start a new website.
ME: What? Why would I start a new website?
PAYPAL: I’m not going to argue with you.

WE WILL TRACK YOUR SHIPMENTS

PAYPAL: The only way you’d be allowed to sell these as gifts is if you sent them directly to the person who bought them. And we will track your shipments and make sure it goes to the buyer.
ME: That’s discriminatory! You don’t make other retailers send purchases to the buyer only, especially not at Christmas.
PAYPAL: No one but a nonprofit would send gifts to someone else on buyer’s behalf.
ME: What about Amazon?
PAYPAL: We know what you’re doing and we’re through playing games with you.

YOU’LL NEVER GET AWAY WITH THIS

PAYPAL: You say you’re selling these as gifts but there is no information as to what the gift is.
ME: People sell mystery gifts and grab bags all the time. What about sites where they say, let us choose for you?”
PAYPAL: It doesn’t say that on your site.
ME: Is that the problem? If I say it’s a mystery gift would that be sufficient?
PAYPAL: You aren’t going to be able to get around this. It’s too late, we know what you’re trying to do and we’re not going to let you do it.
ME: But there are hundreds of toys! Do you think it’s reasonable to create a drop down menu for hundreds of gifts, all of them different, and create an inventory for each as “one?” So that every time one sells, it’s sold out, and the customer has to keep choosng options and going through check out to see if they can find a gift that’s still available?
PAYPAL: Yes, I think it’s reasonable.

Then my brain exploded.

At this point, I asked to speak to a supervisor and was told that “No one above me will talk to you. No one at my level ever makes phone calls. We’re only doing this to help you.”

When I asked how to close my account, he said I had to “refund everything, write a letter saying you understood what you did WAS WRONG AND YOU WILL NEVER DO IT AGAIN, and then request permission to close your account.”

Then, for good measure, they froze my personal account, which has revenue from my book sales, e-books and all the other Finnish Folktales Swag. They’ll be holding that money for 6 months.

So to recap:

$ They allowed me to use a donate button, and got a portion of the donations
$ Then made me return the donations, and kept a portion of the fees on the donations
$ They allowed me to use a Buy Now button to sell gifts individually, and got a portion of those sales
$ Then made me return the sales, and kept a portion of the fees on the sales
$ They processed the toy purchases, and made fees on that

They have made a fortune for not doing anything but making me manually return thousands of $2 sales and contributions.

I have been able to guarantee purchase and shipment of the toys, so that part is happening, as are the letters from Santa (most have already been delivered).

However, I am very sorry to say that at this point, I am not able to make a monetary gift to the families. They have frozen everything that was not already spent or donated, and I have no more funds to make a gift of that size.

MERRY CHRISTMAS

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jtrindle
New Community Member

I've been a casual PayPal user for a very long time, and have heard progressively more appaling stories from vendors and customers.  This saddens me but, even worse, does not surprise me.

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dooky
Member
Member

Absolutely horrible. Incompetence and poor customer service are sort of a given with Paypal at this point, but this isa truly astonishing display of mean-spiritedness and hypocrisy.

 

Even if this was a technical misuse of the donate button (and it's not at all clear that it was; see here for an indepth look at Paypal's own policies and how they don't appear to prohibit activity of this type), the response is completely over the top, and the attitude of the customer service agents involved with this beggars belief.

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Dsage1
Member
Member

Unbelievable.  PayPal better fix this fast-- do they really want this kind of bad press during the holidays?

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dianamg86
Contributor
Contributor

 I applaud you for what you were trying to accomplish. It's so refreshing to find someone out there, that is trying to help the evergrowing poor in our country. Its a  shame that Paypal is trying to make you look like a thief, when in all actuality, they are the thieves! They charge a whopping 2.9% on all transactions, and ebay is just a piece of their action. They just want to keep fattening their pockets, while little children will have nothing to open on Christmas!!  Im sure you have been spending so much of your time, to get this whole thing started, and they just close you down. Well, God knows what was in your heart, and what you were trying to accomplish. Bless you!

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Dsage1
Member
Member

PayPal told Regretsy that only non-profit groups were allowed to use the "Donate" button.  This is incorrect, according to PayPal's own stated policies.  For the whole story, go here: http://www.regretsy.com/2011/12/05/cats-1-kids-0/

 

Or, if that link doesn't work, you can just go to regretsy.com:

http://www.regretsy.com/

 

There's also a blog about it here:

http://thegreengeeks.wordpress.com/2011/12/06/why-paypal-is-wrong-regarding-regretsy-according-to-th...

 

I am now closing my PayPal account.  It's ridiculous to support such an arrogant company with such a horrible approach to customer service when it's so easy nowdays to send payments online using other means, like the online billpay through my own bank.

 

PayPal, you need to apologize to Regretsy.com and fix this ASAP.  You're not the only game in town anymore, and this makes you look really bad.

 

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