April Winchell and the folks at Regretsy.com have been trying to buy Christmas presents for kids. They took many applications, vetted them carefully and set about creating a giant gift exchange program, where you could buy a gift for the over 200 children.
They raised so much money that they found themselves in a position of not just being able to send toys, but to send a monetary gift to the families as well. They hoped it might help them make their holiday dinners more special, or maybe pay a pressing bill.
Apparently they made the mistake of using the “Donate” button, which Paypal is now claiming is only for nonprofit organizations to use. Paypal immediately froze the associated account and is demanding that each $2 donation be refunded individually.
Regretsy.com has been able to guarantee purchase and shipment of the toys, so that part is happening, as are the letters from Santa (most have already been delivered). However, at this point, they are not able to make a monetary gift to the families. Paypal has frozen everything that was not already spent or donated, while retaining all of the processing fees from the multiple transactions.
A full account of the entire ordeal can be found at: http://www.regretsy.com/2011/12/05/cats-1-kids-0/
We cannot allow Paypal to use a technicality to stand in the way of spreading goodwill during this holiday season.
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