----------------------------------------------------------------------------------- Me: You get paid to do this why would you really care, but by that last message, I would assume that that loophole would constitute something legal to your AUP and there is technically nothing you can do about it if it is advertised that way. Thank you for this horrific experience. ----------------------------------------------------------------------------------- Them: Dear ~~~~ ~~~~~~~~~, We consider this matter closed as we have thoroughly addressed this issue. No further explanation is needed. Sincerely, PayPal, Acceptable Use Policy Department PayPal, an eBay Company ----------------------------------------------------------------------------------- Me: Okay, so theoretically, I can 'accept money' from anyone who wishes to give me money. Then I can say that I will pay the first place X number of dollars from my own pocket, and not associate this account for accepting donations or anything related for the contest in any way. Transactions of money between one or more persons is still sanctioned by your company right? Is this loophole acceptable? ----------------------------------------------------------------------------------- Them: Dear ~~~~ ~~~~~~~~~, Once again, the "hypothetical" contest you alluded to consists of contestants entering a competition with the opportunity to receive limited cash payout based on their individual performance. Hence, not every party to the contest is going to receive compensation for their time and effort. We, as a company, consider this a form of gambling as the principle act of your contest parallels activity associated with more familiar forms of gambling such as a fantasy football leagues and NCAA basketball pools. Again, despite the fact that PayPal would be used to collect donations separate from the contest, it would be associated to it simply by having one of our buttons on your website. This exposes us to an unacceptable risk of buyer disputes and chargebacks. We apologize if this is an inconvenience to you however our stance on this issue is firm, and will not be overturned. If you have any questions, please contact the PayPal Acceptable Use Policy Department at aup@paypal.com. Sincerely, PayPal Acceptable Use Policy Department PayPal, an eBay Company ----------------------------------------------------------------------------------- Me: How might collecting donations (NOT entry fees) for prize money for a programming competition facilitate gambling? Would it be possible for you to cite sources, be it paraphrasing of people around you, papers, or websites where you can call a competition like this a gambling or gaming activity? ----------------------------------------------------------------------------------- Them: aup@paypal.com wrote: Dear ~~~~ ~~~~~~~~~, You may not use the PayPal service for activities that: involve gambling and/or gaming activities, including, but not limited to casino games, sports betting, horse or greyhound racing, lottery tickets, certain games of skill, and other ventures that facilitate gambling unless the operator has obtained prior approval from PayPal and the operator and customers are located exclusively in jurisdictions where such gambling activities are permitted by law. In addition, the PayPal User Agreement states that PayPal, at its sole discretion, reserves the right to limit an account for any violation of the User Agreement, including the Acceptable Use Policy. Sincerely, PayPal, Acceptable Use Policy Department PayPal, an eBay Company ----------------------------------------------------------------------------------- Me: Original Message Follows: Okay thank you, can you please direct me to the statement/clause of the PayPal Acceptable Use Policy where these actions be going against acceptable terms? ----------------------------------------------------------------------------------- Them: Dear ~~~~ ~~~~~~~~~, To clarify, PayPal may not be used for donations, or in any other capacity on your website. Should you wish to conduct this contest PayPal may not be associated with it directly or indirectly. In simple terms, if you receive PayPal payments via a website facilitating this hypothetical contest, action will be taken against your account. If you have any questions, please contact the PayPal Acceptable Use Policy Department at aup@paypal.com. Sincerely, PayPal Acceptable Use Policy Department PayPal, an eBay Company ----------------------------------------------------------------------------------- Me: _It is for donations_. The paypal is on the site for _donations_. The paypal is *NOT *on the site for entry fees. It is *NOT *being used for entry fees. ----------------------------------------------------------------------------------- Them: aup@paypal.com wrote: Dear ~~~~.~~~~~~~~~@~~~~~~~~~.~~, Thank you for contacting PayPal, What would you be accepting PayPal for on the website if not for an entry fee or donations? Sincerely, PayPal, Acceptable Use Policy Department PayPal, an eBay Company ----------------------------------------------------------------------------------- Me: For clarification, I stated clearly (included previous email for reference) that people are NOT PAYING ENTRY for the event. So therefore paypal CAN be used? No donations are necessary, most who enter do not usually donate anything. This is in no way an entry fee and never was and never will be. So this is not gambling in any way right? Therefore it should be acceptable unless you find something else that violated the terms? ----------------------------------------------------------------------------------- Them: service@paypal.com wrote: Dear ~~~~ ~~~~~~~~~, PayPal cannot be used for your program if people are paying you donations for entry into the "coding" contest. Whether or not the individual placed #st, #nd, #rd etc. or received a return on their donation/payment is strictly in the hands of the judges ergo, the outcome is not controlled by the contestant. This would constitute a form of gambling again, not allowed per our Acceptable Use Policy. If you have any questions, please contact the PayPal Acceptable Use Policy Department at aup@paypal.com. Sincerely, PayPal Acceptable Use Policy Department PayPal, an eBay Company ----------------------------------------------------------------------------------- Me: I'm not ~~~~~~ ~~~~~~~~~, but that is probably a bug in your system that you should check out if you have time, I am just wondering how my email got associated with it. Anyway, why would the website in question have any bearing on the outcome of this hypothetical situation? And sorry, I wasn't very specific, there will be physical prizes from sponsors, and a cash prize to first place which comes from the donations made by anyone who wishes to donate. So to be clear, prizes and a cash payout, possibly some other physical prize. I've explained the situation in full, I don't understand why the site would need ----------------------------------------------------------------------------------- Them: to be reviewed. aup@paypal.com wrote: Dear ~~~~~~ ~~~~~~~~~, Please send us the website in question when it is completed and we will review. In general, this would not be a violation as the prizes will not be cash payouts. Sincerely, PayPal, Acceptable Use Policy Department PayPal, an eBay ----------------------------------------------------------------------------------- Me: I have some inquiries to your uses and policies. Say, for example, if I operated a site that coded video games and other applications. To spark some interest in the community, Say, if I were to hold a contest where projects would have to be submitted, judged, then winners to be declared based upon certain criteria and the judging of these criteria in the submitted programs. For prizes I have some merchandise from my sponsors that I Will be giving to the winners, but for something extra I wanted to give a little extra zing to the best program. Are any of the terms of paypal or whatever violated in accepting /donations/ from anyone in the community, so that these donations can go toward this contest? Anyone can submit a project, no donations are necessary, nor do you have to participate in the contest if you chose to help the cause.