It turns out if you approach PayPal calmly and rationally, they are happy to explain their reasoning in great detail. So the reason we were banned is because they thought we were associated with illegal file sharing. How in the heck could they think that about NameBio you ask? It’s simple… the Featured Listings. “WTF are you talking about??” I hear you asking. Keep reading, it’ll all make sense.
PayPal was so nice about it that they even gave me example transactions that were tied to the ban. That made it immediately clear what happened, and even how the confusion could be avoided in the future.
Imagine this… Example.tld is used for a file sharing site for years. That domain expires, one of you knuckleheads buys it, and then months later you try to auction it off. “I’ll buy a featured listing to promote the auction!” you say. Getting smarter, but not smart enough.
Now there is a PayPal transaction with the title “Example.tld featured listing for 7 days.” PayPal then implements a new system that flags transactions to/from file sharing sites. Only the list is out of date and Example.tld is still on it even though it expired months ago and hasn’t been used in that capacity since. Now PayPal thinks we’re involved with that file sharing site and taking payments on its behalf.
When really all we did was sell a text-based ad to promote an auction of that domain name, which has literally nothing to do with its prior use. And all that happened without us having any easy way to know its previous history, not being associated with its previous history, or anything nefarious at all. Just trying to help someone promote their auction.
I explained all that to the rep and he understood completely. But he couldn’t do anything about it. Those decisions are made in a vacuum and are final, because they don’t have the resources to get explanations from everyone at their scale. One person decides, and if another person agrees you’re finished. He did give me an email address I could follow up with, and I get one chance to explain this complicated situation.
If they understand me, NameBio’s account and my personal account will be reinstated. If they don’t understand what I’m explaining, or they don’t agree, I’m banned for life. That email is my only shot at making this crazy misunderstanding right. Wish me luck…
I know in the future, if I’m reinstated, I’ll only be putting “Featured listing for 7 days” in the transaction titles without including the domain being promoted, since the domain name has nothing to do with what we’re selling anyway.
I’m willing to bet this is exactly what happened with Epik. Someone registered a domain that was previously used for something shady, paid for it with PayPal and the domain was listed as a line item or in the transaction title, and PayPal thought Epik was associated with that previous use. Or maybe a marketplace or escrow transaction with the same issue.
This is all completely insane, if it didn’t ruin my day I’d be laughing about it.
Michael Sumner is the CEO of NameBio.com. Previously he was the lead developer at State Ventures which owns and operates geo domains such as OceanCity.com and Maryland.com. Michael was also the co-founder of DN Media, a company that was involved in seven figures worth of domain name transactions.
“I’m willing to bet this is exactly what happened with Epik”
You missed your calling in fortune telling and random prediction making Michael! You certainly are good though at weaving a story. I’ll give you that one. 😉
The pressure we are getting is to adopt a path whereby PayPal can save face for following the SPLC lead to harass and disrupt US businesses. WSJ and others are already on the case, and Dan has literally made videos and went through interviews highlighting his counter positions. We were all down for that, up until the point they had Mashable produce content that went to 185 news articles to protect their share price.
This “one size fits all” strategy of calling people racists, then suppressing the evidence that they are not, needs to end. Once it gets out of containment, everyone that helped paint the false pictures will be exposed, and then it will radically flipped in how we see the world.
This is a good warning for someone to careful of what they write in the additional comments. This is also silly in a way. I can get an account banned by simply writing “Poison Keyword” in the additional comments while making a paypal payment, if this is done automatically. I m sure smaller accounts are flagged automatically.
@Tony – It’s called being subjugated to algorithms, aka dehumanization
Michael, I support you and Epik.
Thank you for the transparency, Good luck!
Samer
Sir i Support to You,
I think Paypal need learn more About Domain
Even children can understand this case
WTF!
So cool that i from the start of my domain shop decided not to work with Paypal on it in any way, but to use 2CO instead. So buyers can pay with paypal anyway if they want.
Wish you luck and all the best, Michael!
Time to accept the mighty Bitcoin Michael.
PayPal does this every time. It was used to just individual person now look like they targeting reputable business and industry leader account.
So, Paypal just froze my account. I am a small business owner that sells used motorcycle parts as well as repair and customize them. About 98% of my business is conducted onsite and not through any online marketplace. I also receive numerous payments from companies that I do independent contracting for on the side. Now all of a sudden there is an issue with my account ( I’ve had for 15 +years) and they need to verify my business.
After reading your comments I am beginning to wonder if it is from the comments people place on the invoices, myself included, because they have an itemized one already we treat the PayPal comments like one does on Venmo.
I’m in the middle of starting my business and all of a sudden my account was froze I didn’t have any way to get stock set things up and I am still frozen and they said I have to give all of the people their money back and won’t say why I have a credit business card account and said I have to put money in the account to use it if I have the money I would have never been applying for abussiness account card
I had my personal paypal account frozen because I didn’t provide them with business details for a company that I’d closed about 10 years ago. The strange thing is that it was my personal account and I have no idea how they linked it to a closed business.
The Paypal online help system/people were absolutely useless and their voice help was unavailable due to COVID. In the end I decided to close my personal paypal account down (I’d been using it for about 15 years BTW). Paypal in it’s infinite wisdom wouldn’t let me close it down until I provided them the information about the business….!
I then asked them to “forget” me and quoted my rights under under the European GDPR privacy legislation…..they ignored this. I’m still trying to get them to close the account and every so often I receive an email demanding that I provide them with details that don’t exist on the closed company.
Good luck Michael with your problems!
Wow, that’s nuts… won’t let you use the account but won’t let you close it. They’re still emailing me trying to get me to apply for business loans even though they banned me three days ago. PayPal is special.
This is what happens in a world where algorithms make decisions and humans are too lazy or lack incentive to review them.