PayPal Bans Talking Bad About PayPal

Paypal has just sent out it’s Notice of Policy Updates for 2017.  Among the standard raising of rates, one new clause in the agreement caught my eye – the “non-discouragement” clause which makes talking bad about, or discouraging customers from using Paypal or promoting another payment method over Paypal, a violation of the Paypal agreement which could lead to your account being closed and/or your funds being “held”.

Paypal Non-Discouragement Clause

  • In representations to your customers or in public communications, you agree not to mischaracterize PayPal as a payment method. At all of your points of sale (in whatever form), you agree not to try to dissuade or inhibit your customers from using PayPal; and, if you enable your customers to pay you with PayPal, you agree to treat PayPal’s payment mark at least at par with other payment methods offered.

The first part of the non discouragement clause is a little confusing to me: “you agree not to mischaracterize PayPal as a payment method“.  This means that by calling Paypal a “payment method” you are wrong (mischaracterizing it) and violating PayPal’s rules.  What I don’t understand is, if Paypal is not a payment method, WTF is it? I’m sure there is some wording buried in the service agreement/terms of service/legal mumbo jumbo that names Paypal as something other than a payment method, but to me, if people use Paypal as a method of paying for stuff, it is a payment method.

Paypal non-discouragement clause
Paypal’s new “non-discouragement clause”

The second part of the non discouragement clause is the kicker and where Paypal can ban you for talking bad about, or not treating it the same as your other payment methods – or even trying to push people to using another payment method instead: you agree not to try to dissuade or inhibit your customers from using PayPal; “…and, if you enable your customers to pay you with PayPal, you agree to treat PayPal’s payment mark at least at par with other payment methods offered.”

This means that if you, for example offer both Paypal and Square, but you prefer people to use Square because they don’t gouge you as hard as Paypal, you can’t say anything about it, you can’t ask customers to use Square instead, you can’t offer an incentive to use Square instead of Paypal – you can’t do anything.  You can simply display a Paypal button/logo and a Square button/log next to each other. You can’t even make the Square logo bigger than Paypal’s button. The PayPal button must be “at par” with other payment methods.  Who decides if the way you placed Paypl’s payment mark is “on par” with your other payment method? Well, Paypal does of course.. But don’t worry, you can trust Paypal.. Right?

Unfortunately, because currently there really is no other payment method as large, easy to use, and as widely accepted as Paypal they have a virtual monopoly on the online payments market and can pretty much make up any rules they want, and still ban whoever they want.


6 thoughts on “PayPal Bans Talking Bad About PayPal

  1. I am a desperate mother/grandmother from becoming homeless again.
    I asked for help when I first got my pay pal card. I thought I was getting the help I needed I find all I got was limitations. My landlord has been patient but that running out I am back afraid of homeless again my grandkids don’t belong out there.the money on the PayPal account would be the one thing that keep my family out of home I am not used to asking or begging i am begging now there is away to keep my home for my family. PLEASE HELP ME. My family needs a home to stay in Please help me! Not me my family help them.

  2. PayPal limited me because I had posted a horrible review about them on their facebook. Told them that their support sucks and they need to improve it. Yet my account gets limited days later. Horrible. They made it a permanent limitation now which prevents me from accepting any payments now. They put my business at risk and they do not care at all.

    Trying to get back on with the help of Auction Essistance so hopefully I don’t have to start selling any of my assets just yet.

  3. The First Amendment allows us freedom of speech without punishment and that if anyone is punished or banned from doing so is in violation of their First Amendment rights. Search the ACLU website you”ll find what your looking for. Now if you are publishing untruths you open yourself up to lawsuits, you can only voice your opinion and educate others on where they can go to learn more about what you are dictating. Something like this “WARNING if you are considering using or are using PayPal services please go to these websites first” i.e. Consumer Affairs BBB or others that are reputable and have truthful accounts. You must include the exact link for those who are not internet savvy and make it as simple as possible for them to get the information. There is nothing wrong with opening peoples eyes to whats going on. I found that companies that rely on customers as their main source of income/wealth don’t really care to much about complaints or individuals they ONLY care about the bottom line! So if you inform their customers or even their future customers legally by directing them to factual evidence C.A. BBB or even through settled lawsuits, you may encourage others to not use their services or discontinue using them. You could even post WARNING flyers at colleges and universities they all have bulletin boards everywhere even Malls have bulletin boards now your hitting potential future customers. Many people think you can’t hurt these corporate monsters but I beg to differ hit them in the bottom line you’ll get their attention also strength comes in numbers (-8) You could call it “Operation SnowBall” A.K.A the Snowball effect the more that jump on the bigger it gets!!!

    1. The First Amendment to the Constitution of The United States only guarantees the protection freedom of speech from the government, not private entities like Paypal, dumb-ass!

      Your Snowball idea/informing/warning customers is a good idea, but until there is a viable replacement to Paypal (usable anywhere, easy to use, etc), it wont work.

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