At this point, I am not sure why anyone would trust PayPal enough to use them as part of any kind of funding program. It just doesn’t make sense. Paypal has a long and sordid history of arbitrarily withholding funds in the name of “fighting fraud”. For a few months, we even had a PayPal link on the side of our page asking for donations through it. But that is gone now.
Over the years, PayPal has shown itself to be an unreliable form of payment processing. It is rather easy to search the internet and find stories of Paypal either closing accounts due to arbitrary rules or perceived infractions. They even find themselves acting as if they are some kind of morality police. Recently they have been glutting themselves on withholding of legally raised funds through the service IndieGogo. Earlier this year, they withheld part of the funds of Skullgirls. Just last week they withheld half the funds of the secure email client, Mailpile.
Despite all this, and the many many retractions of these actions, PayPal still keeps going. Just this past day, PayPal froze half the funds of the recently successful Yatagarasu Attack on Cataclysm demanding that it complete the game with only half the funds it raised in order to get the rest of the money. This is insane. Continue reading