Regretsy, a popular blog for failed crafts, decided to do something awesome this winter. They organized a gift drive for over 200 underprivileged kids and invited their readers to donate to the cause. The readers responded so quickly and generously that Paypal decided to freeze the Regretsy Paypal account. Paypal refunded all unprocessed donations and decided to keep all of the processing fees for itself.
So, 200 kids are denied charitable gifts for Christmas, Paypal makes its cash, and everyone moves on their merry way? Right?
Not so fast.
Regretsy posted two intense posts about the incident, and the devil is in the details for Paypal. Apparently, when donation campaigns are as successful as this one, Paypal’s fraud department makes a judgment call on how legit the campaign is, or something like that. Paypal keeps changing it’s story.
Check out this exchange between Regretsy and a Paypal representative:
So apparently Paypal is just fine ruining Christmas for underprivileged children, but not for cats.
The problem stems from a very ambiguous, subjective fraud prevention policy. It appears as though Regretsy is still in talks with Paypal regarding the funds, and hopefully they will be refunded soon.
Update: Paypal has recognized it’s Scroogieness and released the funds. Christmas is back on for both the underprivileged felines and children.