Topic: Apparently PayPal can no longer be used to buy/sell Bitcoin mining hardware (Read 36944 times)

This sucks but I did wonder how long it would be before PayPal would put some kind of stoppage on e-currency being used. I would say it's a shame but really PayPal will end up suffering in the end doing things like this.

There are many (Online Payment) Alternatives to PayPal.
are any of them friendly to Bitcoin and to buy/sell Bitcoin mining hardware ?

here is some of them ...
The Top 12 Online Payment Alternatives to PayPal
http://www.searchenginejournal.com/top-12-alternatives-paypal/

agree....
just don't use paypal. they are not worthy of the profit they are taking from you.

Not trying to bring back a dead topic but...
I ended up successfully selling the rest of my BFLs using a family member's PayPal account.  Everything went fine, but I got a voicemail from PayPal the other day (regarding the other account) saying that they needed to talk to me ASAP.  I called them back today and the guy I spoke with basically just wanted more info on why I suddenly had a huge spike in volume (the PP account was hardly used for anything), and what I was selling.  I told him that I was selling FPGA devices which "people mainly use for Bitcoin mining".  He asked a couple more basic questions and then said that he had called the biggest buyer of my items to make sure everything was okay (the buyer was happy) and also reviewed my eBay auctions and didn't find any problems, but that he had just wanted to talk to me to see what was up.  I then asked if there was an official policy on selling Bitcoin mining hardware, and he said the official policy was that "there is no official policy", but that they see a lot of problems with people selling pre-orders and want to avoid disputes so they don't like pre-order transactions.  He said that I shouldn't have any problem selling in-hand hardware though.  Then he said that he wished other sellers were as contentious as I was since I was, since I was very clear in the wording on my auctions about exactly what the buyer would be receiving.  He said that there would have been an issue if I was making claims about how many bitcoins you could mine per month, or how fast you would make ROI on the device.

So this leaves me thinking the only reason my account was locked was because of the buyer who paid me and selected "gift" instead of "goods". (his doing completely; I had sent an invoice but he sent a new tx with "gift" instead of paying the invoice)

TLDR: Selling in-hand mining hardware on PayPal is apparently fine.  Just make sure you properly classify your transactions and make sure you let buyers know the facts and only the facts about what you're selling. (no ROI claims, etc.)

Isn't this consider profiling and is illegal?

Oh also, if you are buying and reselling just "digital" coins, almost all need verified paypal with matching address, but thats been standard for as long as I can remember because of hacked accts and constant chargebacks. But in general, read through a few auctions if your a newbie before try it there.

Good luck!!

P.S. glad your account is unlocked 

You just got unlucky man, most people who buy and sell on there go unhitched.

I have sold tons of casascius, digital, and other bitcoin *related* stuff and I have never had a problem. Not once.

People who sells coins with physical receipts *tracking numbers* have virtually no problems.

And even most who just sell the digital coins will be able to with no issue. I mean there are over 600 search results when you type in bitcoin. So it is not really a big issue.

Unlike if you type in "modchip" or "Ukash" etc., which back in the day would find literally 0 results because it is against TOS, maybe a few if you were lucky.

The only ones who have ever had an issue or hear commonly of issues are people selling mining units, physically custom made bitcoin notes ex hand made QR notes, and ESPECIALLY pre-orders.

I have a phone call I recorded as well from around mid april, asking a representative about bitcoin, and ebay specifically does have it against any policy. Ebay is not the problem it is almost always PAYPAL.


So yeah, for now everything is hunky dory follow those things if you choose to sell their and you will probably be okay. However, with all these coins I am sure it will not be forever, so if you enjoy buying and selling on ebay, get it while it is hot so to speak. IMO at least. I think they should allow it to keep selling, boosts momentum for the currency, but I'm not in charge. Good luck!!

Both....

PayPal must have changed their rules in the UK then, I never had to provide any of that shite when I verified my account. Still, just another reason to not use them I suppose.....

What? With PayPal or the UK?
Well that's not very encouraging is it?

I'll have to remove PayPal as an option for people buying from me on other forums then as I have no time to spend on this verifying business. It'll be either Bitcoins or bank transfer for my buyers in UK for items to sell on avforums.com now.

It's normal in a totalitarian nazi police state........

I wonder if this will affect used GPUs next seeing how they can also mine bitcoins (rather poorly I must add) if PayPal has a problem with 'bitcoin mining units'? Thanks for the tip. I'm also having an issue with PayPal in terms of verifying who I am (apparantly asks for Drivers license and proof of address after a while of being unverified from the start,is this normal?).

I find it funny that people are using paypal to purchase bitcoin mining hardware.

@OP: Mitty, can I ask how many Singles you sold before PayPal sent this? I have 5 that I was going to try and sell next week, but I'm a little hesitant now.

Show them that CPU's, GPU's, Iphones, Tablets, and itouche's can also MINE, and are, thus, "mining equipment"... and they will change the statement.

BFL's are not "dedicated" only to bitcoins, nor are any other devices, thus, can not be called "bitcoin miners", just because they are capable of that task. They would have to be dedicated to that task only. (ASIC's can mine any other alt-coin, that is based off SHA256, and perform other duties. Proof of that is on the website, in the software section. Shhh, that is for the FPGA's not the ASIC's... but they don't know that!)

Legally, you can sue them if you use CC or BANK-NOTES through PAYPAL... as... "This currency can be used for ALL DEBITS PUBLIC AND PRIVATE." It is a federal violation to "Refuse acceptance of currency of a federal note, for services." It is also a violation of the CC company, who is backed federally, and says roughly the same thing. (They had to agree to that, to accept a CC for transactions.)

They can only block actual "paypal - currency" that is originated from "paypal - currency". (EG, I pay THROUGH paypal, but the money I pay with is USD from a bank, or CC funds.)

How does this affect services like https://btc2pp.net ?

The answer to this is escrow. The problem is that there's no escrow (that I know of) that will execute trades into an out of bitcoin for you, so the seller is exposed to value risk. Also, it's a lot more annoying for something like this where completion of the sale could take months.

PayPal is eBay is rip-off merchants. They are not to be trusted whatsoever. Having said that, I do use them occasionally if I see a potential bargain, but I NEVER leave cash in my PayPal account - instead I transfer it to/from a bank account that I use solely for PayPal/eBay, then immediately transfer again to a different Bank account to ensure they can't rip me/freeze/steal any cash from me. As they do to thousands of people around the world. The scum.

Thanks to Bitcoin, their days are numbered.

$8 UPS notary fee and 2 days later, I once again have access to my PayPal account.  wooo

The reason people still use paypal is because in normal transactions it gives the customer protection. Crypto coins do not. Like hell im going to send someone overseas 100 bitcoints for an avalon preorder with absolutely no protection. Until bitcoin gets a service similar to paypal that offers us protecion, paypal will be #1.

The sad truth is, Bitcoin is full of scammers and I have yet to see any alternatives to using paypal other than haveing a third person involved for escrow.

All in good time.