PayPal Rampage

Earlier this month Paypal decided to shutdown the account of Rotate4All and just now they shut down the account of FuglyBanners.

In the case of Rotate4All they had already diversified their payment options so they where ready when it happend, but in the case of FuglyBanners the word from the owner, Carl Bailey, is that it will shutdown the entire service since Paypal was the only payment option he used, and he needed that money to pay for the internet hosting.

This is very sad, I really liked FuglyBanners and I hope he will find a way to bring it back.

It also makes me very angry with Paypal, since there was no real reason to shut them down, and even more so since they have been doing this to a very large amount of legitimate internet businesses.

But that also brings me to a point that I would like to make, DO NOT TRUST PAYPAL.

If you are relying on Paypal to stay operational as an internet marketing business, then you will always run the risk of being shut down at the whim of Paypal.

The thing to do instead and my advice is to use other payment options as far as possible.

And if you are an affiliate don’t recieve payment to your own payment account directly from the customer, or member to member (maybe with the exception of bitcoin), you should receive affiliate commission from the owner who receives payment from the customer and then pays out commission payments to you.

If you receive payment directly then you are legally speaking the seller of the product and you are legally liable for it, wether you actually own it or not. This is important, ok!

So that was all I wanted to say right now.


Erik Gustafsson