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PAYPAL is shutting down e-cig companies

Discussion in 'Legal Issues with Ecigarette Use' started by RexFollett, Oct 30, 2010.

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  1. RexFollett

    RexFollett Moved On

    Oct 22, 2010
    --- On Sat, 10/30/10, *******************************************************************************************************************************************************************************************************************>
    Subject: Your account has been limited until we hear from you
    To: #############
    Date: Saturday, October 30, 2010, 5:50 AM

    Dear ########,

    We appreciate the fact that you chose PayPal to send and receive payments
    for your transactions.

    However, your account has been limited for violating PayPal's Acceptable
    Use Policy. Under the Acceptable Use Policy, you may not use PayPal for
    the sale of certain products that present a risk to consumer safety. To
    identify products that jeopardize consumer safety, PayPal reviews laws,
    regulations and other government actions, other available evidence, and
    marketing content related to the product. The sale of e-cigarettes from
    your jurisdiction is covered by this policy.

    The complete Acceptable Use Policy can be found at the following URL:

    To learn more about the Acceptable Use Policy, please refer to our Help
    Center page here:

    We are hereby notifying you that it has been determined that you are in
    violation of PayPal's Acceptable Use Policy regarding your sale of
    e-cigarettes on ########. To appeal the limitation on your
    account, you will need to:

    1. Remove PayPal as a payment option, as well as all references to
    PayPal, including the PayPal logo and/or shopping cart, from your
    website(s), ###########.

    2. Submit the online Acceptable Use Policy affidavit.

    To appeal your limitation, login to your account and select the "Resolution
    Center" link. On the next page select the "Resolve" button(s) located in
    the Steps to Provide More Information section and follow the applicable

    This is not intended to be an all-inclusive review or list of your Internet
    sites in violation. Furthermore, the violations of the Policy described
    above are not intended to be an all-inclusive list. It is the
    responsibility of the user to ensure that all transactions comply with the
    Acceptable Use Policy.

    For more information about the status of your account and for instructions
    on how to restore full use of your account, please login to your PayPal
    account. We encourage you to log in and restore full access as soon as
    possible. Should access to your account remain limited for an extended
    period of time, it may result in permanent limitation.

    Thank you for your prompt attention to this matter. If you have any
    questions, please contact the PayPal Acceptable Use Policy Department at

    PayPal Brand Risk Management Department
    PayPal, an eBay Company

    Please do not reply to this email. This mailbox is not monitored and you
    will not receive a response. For assistance, log in to your PayPal account
    and click the Help link in the top right corner of any PayPal page.

    Copyright ©2010 PayPal, Inc. All rights reserved. PayPal is located at 2211
    N. First St., San Jose, CA 95131.

    PPID PP1589
  2. kanadiankat

    kanadiankat Unregistered Supplier ECF Veteran

    Oct 14, 2010
    Alberta, Canada
    This has been going on for quite some time.

    Paypal received a threatening letter from the FDA during their court case earlier this year. The letter informed Paypal that they could be sued for providing a payment service for ecigs.

    Paypal simply rolled over and did whatever they said.

    Shame really.
  3. pkj

    pkj Ultra Member Verified Member ECF Veteran

    Apr 18, 2010
    Paula in Arizona
    Wonder what this will do to Eastmall payments.
    They are located in China.
  4. Mr.Self_Destruct

    Mr.Self_Destruct Ultra Member Verified Member ECF Veteran

    May 14, 2010
    Queens, NY
    Have a business address outside the US and you'll be fine. Look at TW, LF, EM, HG. all use PP.

    It's a US rule.
    • Like Like x 1
  5. pkj

    pkj Ultra Member Verified Member ECF Veteran

    Apr 18, 2010
    Paula in Arizona
    OK - Thanks for that info about overseas suppliers.
    I did not know that.

    Thanks, Bert.
  6. Mr.Self_Destruct

    Mr.Self_Destruct Ultra Member Verified Member ECF Veteran

    May 14, 2010
    Queens, NY
    No problem. Just passing along info that was passed on to me when i had questions about it.
  7. MsOceanCity

    MsOceanCity Super Member ECF Veteran

    Aug 7, 2009
    New Jersey
    Really? Not all suppliers are being shut down, as I placed and recieved an order, within the past week, from TrueSmoker without a hitch.
  8. 7thCabal

    7thCabal Super Member ECF Veteran

    Jan 4, 2010
    Happyvaper in Canada no longer uses PP because they got jammed with that Acceptable Use Policy BS-- that was several months ago. I think its more how it's marketed while doing transactions through PP.
  9. Roger-J

    Roger-J Full Member

    Dec 19, 2010
    I do not live in USA, nor do I buy from companies in USA, but Paypal has started blocking payments in other countries too. Four weeks ago I sent for a bunch of atomizers from a company in another country, and Paypal refused to transfer my money to that company for the first time in over two years, so I paid directly with my credit card instead. Three weeks ago I sent for 750ml 24mg e-liquid from another country and Paypal had no problem with that payment.

    Conclusion: Paypal, and maybe FDA, knows about some companies which deals with e-cigs and e-liquid, and do not know about other companies. So please do not write about companies they have not discovered and banned yet. FDA or Paypal may have informers in big e-cig forums. For companies it also helps to have a company name which does not contain words like e-liquid, e-cigs, smoke, etc in the company name. The company which I no longer can use Paypal for has the word e-liquid in its company name.
  10. ironslave

    ironslave Super Member ECF Veteran

    May 16, 2010
    i wish people would stand up to the FDA, this is bull honky. PayPAl is a huge company and they should stand up for their rights!
    • Like Like x 1
  11. reverendg

    reverendg Unregistered Supplier ECF Veteran

    Apr 10, 2010
    washington USA
    A lot of the larger companies in China that I order from also allow the use of paypal, but only for amounts up to $1000.00 , some only 500.00 and then you have to do a wire transfer. I think that's how they get away with using paypal.
  12. sherid

    sherid Ultra Member Verified Member ECF Veteran

    May 25, 2008
    Just today, I received a message from PayPal saying that they would hold all funds from my account for 21 days. I have no complaints on Ebay, have no ecig related sales, nothing that would trigger such a move. I have 100% rating on ebay, and have no disputes....yet it does not matter. I will use PayPal for NOTHING other than paying for anything that accepts it. They are NAziS. I despise them.
  13. StormFinch

    StormFinch Ultra Member Verified Member ECF Veteran

    Mar 22, 2010
    One of the reasons, followed closely by their e-cig rules, that I cancelled my decade old PayPal account and told them exactly why in the comments box. They will NOT be getting any more of my money ever, even if it means I can't purchase in the classifieds section here. They do business outside of any kind of financial laws and can get away with pretty much anything they want. Try googling PayPal complaints sherid, you definitely aren't alone. I just hope they didn't "hold" too much of your money.
  14. DCrist721

    DCrist721 Super Member ECF Veteran

    Feb 15, 2009
    Long Island, NY
    I too have an issue with paypal. I got scammed out of $120 in what was supposed to be a protected transaction (that's not the right term exactly but I can't think of the proper term) and it took PayPal two months to go through the whole investigation process in which they finally ruled in my favor, and they sent me an email telling me "Congratulations, the dispute was ruled in your favor, and we are pleased to inform you that we have retrieved $0.01 of your money." One cent, one fvcking cent. They should have frozen the guys account during the slow (I'm talking DMV slow) investigation process, instead of giving him two fvcking months to empty his account.

    Anyway, during this same time I had purchased something else and didn't have enough money in my account to cover it, but somehow it went through, so obviously I was given a negative balance (of $20). So I'm on the phone with PayPal about the dispute mentioned before, and I ask them...
    Me: "Well the dispute was closed in my favor, so why can't you give me my $120 and just give him a negative balance of -$120?"
    Them: "I'm sorry, but we can't do that."
    Me: "What do you mean you can't do that?? You did it to me! I'm not complaining that you did because I legitimately owe you the money, I'm just saying that I know it can be done"
    Them: "Well you see Sir, we really have no way of forcing them to pay back the money"
    Me: "So then you have no way of forcing me to pay you back? Cool. Thanks for your help then, and fvck you guys."
    [I hang up the phone]
    /End Scene

    So I'm not surprised at all that they're pulling this crap with the e-cig companies; they can do whatever the hell they want to.
  15. zadane

    zadane Super Member ECF Veteran

    I've noticed the lack of suppliers using paypal, what is the list of ones that openly use paypal?
  16. pkj

    pkj Ultra Member Verified Member ECF Veteran

    Apr 18, 2010
    Paula in Arizona
    Has anyone here heard of Dwolla?


    I just heard about them. Fees are Zero to send money.
    25cents each transaction to receive money.

    I'm finding this a little too good to be true. It is worth taking a look at.
  17. btngchck

    btngchck Ultra Member Verified Member ECF Veteran

    Jul 29, 2010
    Gibraltar, MI
    Wow Paula, looks like a very nice site. I wonder if it will catch on in the classifieds. I registered but still doing some research on it. So far from what I've seen it looks legit. Maybe more people will look into it as well.

    Thank you for sharing this.
  18. webvapor

    webvapor Senior Member ECF Veteran

    Jan 22, 2010
    San Francisco
    Shame on you PayPal... no pal o' mine..... Gotta look into Dwolla. Thanks for that info Paula!
  19. ec!gg

    ec!gg Unregistered Supplier ECF Veteran

    Jul 2, 2010
    Philadelphia, PA
    Never heard of Dwolla... Do you know anyone that has ever used them?
  20. aprioristic

    aprioristic Moved On

    Oct 20, 2010
    Harrisburg, PA
    I've used Dwolla for a few transfers related to trading bitcoin (watch the video there for what that is..)

    After I filled out a Dwolla survey last week I got an email from the communications director of Dwolla and I am going to be talking to him sometime next week. I'm prepping some questions from the bitcoin community for them, but I can also ask about ecigs.

    The catch with Dwolla is that it uses ACH, so it takes more time than credit cards. My bank doesn't charge for ACH, but some crummy ones do. You can look at some places like USAA or Ally if you have a crummy bank.
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