From what i can tell, April is the one who set it up wrong in the first place, and now everyone is blaming PayPal for her mistake.
Not exactly. PayPal doesn't have clear rules on their Web site for how to use the "donate" button. In fact, the "rules" that they told April about appear NO WHERE on the PayPal site. When they told April of their policy (which is not their actual policy), she followed the course of action they recommended. They then told her that was wrong, too. Add to that the ridiculous nonsense that came from PayPal reps (helping the poor isn't a worthy cause, you can use the donate button to help your sick cat but not poor kids, etc), and I'd say PayPal is fully in the wrong. In addition, PayPal froze both the Regretsy account AND April's personal account. The process for account review is a whole other clustermess; it's based solely on gut feelings. There is no rhyme or reason. Finally, they made her refund all the money but kept $2 from each transaction for doing absolutely nothing.
Oh, and let's not forget that PayPal told the media they'd talked to April and offered to make a donation before they actually did.
Honestly, PayPal's policy on the donate button is a hot mess and makes no sense. It certainly doesn't help that the policy that they enforce doesn't actually appear anywhere on their site.
If you go to your bank and fill in the wrong paperwork they aren't gong to magically intuit what you really meant; they're going to assume -- as well they should -- that you filed things correctly.
And yet you think April should have been able to intuit that PayPal had policies that do not appear on their site.
How was she supposed to know (again, given that it is not written anywhere on their site) that people using personal accounts can take donations using the donate button but people using corporate accounts can't? Heck, the people working at PayPal don't even seem to know the rules!
I was initially told that all of this was triggered by my incorrect use of the Paypal donation button. “Only a registered nonprofit can use the donation button,” they told me, and that’s what I told you.
Except that turns out to be false.
Anyone can use a donation button. For anything. That’s why you see them on blogs, raising money for bandwidth or medical bills, or even beer money.
According to the Paypal executive who called me today, “The information you were given about using the donation button was definitely incorrect, and at the end of the day, it was an error in judgment on the agent’s part.” ... Except he’s not the only one I heard it from. I also got that information in two separate emails from Paypal. And that means that Paypal’s donation policies are so poorly worded and vague that even the people who work there don’t understand them.
I recommend this article, which lays out how PayPal was not following their actual policy.http://thegreengeeks.wordpress.com/2011/12/06/why-paypal-is-wrong-regarding-regretsy-according-to-their-own-policies/