PDA

View Full Version : Very sad day for paypal



sivic
09-05-2005, 12:56 AM
It's no secret that the widespread destruction of Hurricane Katrina was exacerbated by delayed relief efforts, but the latest victims of bureaucracy are those individuals simply trying to help out. Humor site Something Awful raised almost $28,000 in less than 9 hours - right up until PayPal froze the funds.

Something Awful's dedicated community may call themselves "goons," but they have historically been quick to respond when needed. The site previously raised $22,000 to fund armor plating for soldiers in Iraq. And the disaster unfolding in New Orleans and the rest of the Gulf coast was no exception.

With its main Web servers located in downtown New Orleans and offline due to flooding, Something Awful founder Rich Kyanka asked visitors to donate to the Red Cross from a temporary page explaining the situation.

"Some people are emailing me, asking if they can donate to SA to help with our server move and downtime and temporary hosting and stuff. Don't worry about us, we'll be fine," Kyanka wrote. "If you really want to make a difference, donate to the SA Red Cross Relief Fund link above. They need it more than we do."

Unable to take credit card payments directly due to his site being down, Kyanka set up a PayPal account specifically to handle the effort. Donations poured in at a rate of almost $3,900 per hour - an astounding number from any perspective.

That is, until PayPal shut down Something Awful's donation account late Saturday evening. Because PayPal's customer support was closed for the night, Kyanka was unable to discover why $27,695.41 in Red Cross relief funds were locked. PayPal's automated system explained that it had received "more than one report of suspicious behavior from your buyers."

In the interim, Something Awful directed visitors to donate directly to the Red Cross. Kyanka said he originally setup Something Awful's own fund so he could send free merchandise such as hats and t-shirts to those who donated.

Explaining the situation on Something Awful's temporary Web site, Kyanka exploded: "It's not me you're hurting; it's the thousands of goddamn people with no homes, no money, and no hope fleeing a burning, flooded wasteland they used to call "home." I wasn't going to take a single cent of the donations, unlike PayPal, who decides that when people send money to help victims survive a national disaster, their company should still make over 2.35% of everything sent in."

Kyanka reached a PayPal customer support agent Sunday morning and was asked to fax in a driver's license, bank records, credit card records, and a written request to unlock the account. He was told it generally takes 3 to 5 business days to process the documents.

Another PayPal representative called Kyanka Sunday afternoon, offering to help resolve the problem. However, she also delivered some bad news: PayPal was unable to directly donate to the Red Cross. Due to prior agreements, the United Way is PayPal's relief organization of choice.

After initially agreeing to the charity swap, members of the Something Awful community questioned the United Way's record. And with no word of when the donations would be freed, Kyanka contacted PayPal and "asked them to refund everybody's money."

"All I tried to do was raise money and personally reward people for donating in a time of need, and it turned into a smoldering, twisted, burning car wreck along the highway. I'm beyond apologetic this did not work out the way I planned, but the pure hassle PayPal has given me trying to raise money just isn't worth it, especially when it could take over a week for the money to be unfrozen," Kyanka wrote in a final update.

unbelievable.

labont865
09-05-2005, 2:13 AM
I personally dont use paypal. And as of reading this I probably never will. Shame, as I was considering opening an account with them fairly soon.

Emg
09-05-2005, 6:33 AM
I've never used paypal and don't ever intend to. My brother in law got his identity stolen using a paypal account....luckily he found out about it within only 2 hours of the theft. It was a hassle, but no where near what it could have been.

pl*co
09-05-2005, 8:08 AM
In this case, the correct approach is to donate cash directly to the Red Cross. Period. To take the Something Awful (or any other non-accredited fund raiser) approach is questionable, with respect to how the funds will be used, regardless of an outside fund raiser's past good behavior. Until the fund raiser in question becomes accredited by the "system" it is the only way to minimize (note that I use the word "minimize" here) the chances that the funds will be mis-used. Just stating a fact, not saying that Something Awful's intent was anything other than good. As for PayPal, they are doing what any good business would do to protect their reputation and maintain their customer's trust...not to mention their customers money. There is no guarentee the funds will get to the folks that need them the most and exactly how the funds will be used.. where is the accounting? Just how will SA be held accountable? Kudos to PayPal. Right now, PayPal is the best thing going. Since Verisign had problems due to an invalid certificate from Microsoft, their reputation and trust from customers has been negatively affected forever (see Emg's post above regarding PayPal). I cannot imagine what would happen if PayPay was in the middle of a scam of this proportion and for a cause so deserving. Back to Something Awful, the gentleman should have done his research first i.e., PayPal's United Way preference over the Red Cross. To use PayPal to apply donations to the United Way would have been proper... not depend on Something Awful to "do the right thing". He is angry and his feelings are hurt, so what does he do? He questions the United Way. If he really had the victims of Hurricane Katrina at heart, he'd shut the heck up and go with the United Way. Again, shame on him for not doing his research first. He is the real reason the funds are on hold.. not PayPal. To him I say, take your t-shirt money and donate it to the Red Cross....or at least give the shirts to the folks who are in need of the darn things. People first, ego second. You don't have to have "your own" fund raiser. There are already organizations designed to deal with that and deal with it properly. That's what they do. It's not about SA.

zacdl
09-05-2005, 8:33 AM
Actually they disabled that account for suspicious behavior, AND no proof the guy was actually shipping anything.

PayPal is still up and running, they just shut down that one account.

Kasakato
09-05-2005, 9:01 AM
I just use my "junk" information for PayPal. I hate them, but have to use them.

nursie
09-05-2005, 9:40 AM
I've used paypal for years and have had no problems. There are many ways to get your identity stolen, not to make light of your brother's situation, Emg; and who knows it could happen to me tomorrow.

I have no clue as to what SOmething Awful is...but I think I would be suspicious of someone soliciting charitable contributions via a paypal site.

aquariumfishguy
09-05-2005, 2:18 PM
I don't pay for much of anything online... call me old school but I don't trust a computer with my money unless there is a person working with that specific computer. I really don't like to rely on them when I go places in person, but at least then I am talking to a customer service rep or someone fairly knowledgeable. A false sense of security? Perhaps... but it works for me. Haven't gone through the hell of identity theft, thus far.

valleyvampiress
09-05-2005, 6:28 PM
I don't pay for much of anything online... call me old school but I don't trust a computer with my money unless there is a person working with that specific computer. I really don't like to rely on them when I go places in person, but at least then I am talking to a customer service rep or someone fairly knowledgeable. A false sense of security? Perhaps... but it works for me. Haven't gone through the hell of identity theft, thus far.

The majority of identity theft does not occur online, but in person. Mainly it is through searching through people's mail boxes or from papers being thrown away with personal information that hasn't been shreded properly.

aquariumfishguy
09-05-2005, 9:08 PM
Perhaps, but there is still many (once "secure") sites that are hacked into now, credit card numbers which magically show up in others' hands, and so on. I still prefer to do my banking and purchasing in person. Something about it puts my mind at ease, like I said - whether or not it's rational is beside the point.

judgemax
09-06-2005, 9:19 AM
I had a loan through citi financial, citibank ..and their affiliates (it all boils down to one company) and when they were transporting records to a wharehouse ..they had several boxes of records stolen ..these records contain everything from ss numbers, drivers lisence and addresses ..ect ect...citi sent out a letter explaining that while they are " fairly sure " that these would not be used to steal identities they wanted those whose records had been stolen that it is a possibility and to be aware of our credit ratings and info! ..identity theft is a scary thing ..if you have to actually think about it!

nursie
09-06-2005, 11:06 AM
The majority of identity theft does not occur online, but in person. Mainly it is through searching through people's mail boxes or from papers being thrown away with personal information that hasn't been shreded properly.


Yeah...my husband is pretty obscessed with burning or shredding everything with any identifying info.