PayPal, an online payment system, is now facing cyber bullying after the company froze an account for a Christmas charitable program of Regretsy.
After organizing a holiday program online which will allow readers to buy toys for their supported 200 underprivileged children using PayPal’s “Donate” payment button, the payments company froze Regretsy’s PayPal account saying that the latter misused the payment button. PayPal’s “Donate” button should only be used for nonprofit transactions.
Regretsy then contacted PayPal about the incident on their Secret Santa fund. They admitted that they used the wrong button and PayPal replied saying that the company needs to refund the donations they have collected.
Conversations of the organizer with PayPal customer representatives were posted on Regretsy’s blog. Because of the condescending remarks of the representative, PayPal earned negative comments from Regretsy’s supporters and other online community.
The news about PayPal ruining Regretsy’s Secret Santa campaign went viral where people started bashing PayPal on their Facebook Fan page.
In the end, PayPal issued a statement in a blog post that the controversial fund has been released and that the company is currently working directly with the organizer. PayPal apologized for what happened and admitted the error on their part.
Last modified: December 7, 2011