PayPal Is Blocking Payments To VPN Providers

Although using a VPN isn't illegal, it is getting more difficult. Joining in on Netflix's attempt to clamp down on viewers breaching terms of service by utilising VPNs to avoid geo-blocking restrictions, PayPal has now begun removing its services to VPN providers.

VPN provider Unotelly has provided an update to customers:

"PayPal has severed payment processing agreement unilaterally and without prior warning. PayPal indicated that UnoTelly is not allowed to provide services that enable open and unrestricted Internet access."


"As result, UnoTelly can no longer accept payment from PayPal. This development is outside of our control, and we sincerely apologise for the inconvenience."

As result, UnoTelly can no longer accept payment from PayPal. This development is outside of our control, and we sincerely apologise for the inconvenience."

The following email was reported as sighted by Torrentfreak:

PayPal states that its services cannot be used to "send or receive payments for items that infringe or violate any copyright, trademark, right of publicity or privacy, or any other proprietary right under the laws of any jurisdiction."

It appears in this case, the breach of Netflix's terms of service by utilising a VPN to access content is what the payment provider is referring to.

If you find PayPal is no longer available as a payment option for your VPN, let us know in the comments below.


Comments

    What a bunch of Cockwombles.

      I wish I had a "comment of the day" award.

      Cockwombles.

      Amazing.

        Cockwombles has made my day...

          This new is true about Paypal blocking payment methods of VPN providers or spending there Paypal accounts but still ExpressVPN allowing users to access Netflix U.S. with security. http://bit.ly/1TLtYAw

          Last edited 04/06/16 10:40 pm

      +1

      Its not up to PayPal to play police unless the "nefarious" activity is defined as criminal by a court in the country where the activity has occurred. [Here's to cash always being here.]

      I vote for Cockwombles as the word of the year 2016.

      Went to the effort of logging in just so I could up vote this

    what a bunch of immigrant abusers.

    No right of appeal, holding funds for up to 6 months. Paypal seems to run to a law all of its own, but that is not anything new.

      I thought the reason for setting up the internet in the first place was to have open and free access to all sorts of things. Why do so many companies restrict services to countries like Australia? What is the point of having a service like netflix and only have a relatively small percentage of shows when compared to other countries?
      Makes us feel as if they have something personal against us, especially when you find out we get charged significantly more for a restricted service than they do for the unrestricted service in the States. What did they expect us to do when we find out bigoted companies are treating us in this manner.
      I detest most US sitcoms, and attempts at comedies because they are absolute rubbish (just don't find their over-the-top, in-my-face, rehashed humour and constant canned laughter to literally everything that is said or done, to be funny). Nor do I find any of the (cheap and fake) reality shows worth watching. The only thing I regularly stream is a couple of sports and if I want access to other shows, I find free access to stream them over the internet. Thus, it is easy to find streams (live and prerecorded) on the internet ( I can even record them on my PC for later viewing) without having to subscribe to a netfilx type of service. I also load up several micro SD cards with shows and movies I record off free to air, so I can have free access to view what I want, where I want it, even when there is no internet available. Maybe it is because we didn't have a TV (in Townsville, we only had access to 2 channels anyway) until I was in my mid teens (we could finally afford a small black and white) and by then I was far to busy with other pursuits (sports and girls), that, even now, it so easy to find other things to occupy my time. Recently I got offered 3 months free and full access to presto, but after going though all of their offerings, there was nothing there at all that was worth watching (considering it is free that shows how bad their catalogue is), so I didn't get it. I don't even get foxtel and we got given a free optus fetch TV box which is just used as a PVR.
      I can see how companies, like netflix can apply pressure onto paypal to force it into acting as police for them - if you don't stop them, we will not use your payment service.
      In the end, I have yet to find any justifiable reason to waste my money on any of these overpriced and restricted services.

    "Under the laws of ANY jurisdiction". So if it's against the law in North Korea, you can't do it! Isn't that just a bit limiting?

    I'm not sure Paypal can claim a violation for a VPN connection. There are too many legitimate uses for one. A DNS redirect yes, but not a VPN connection.

    Given that they sell both I'd say the violation is for the DNS redirect and NOT the VPN.

    So when will PayPal be shutting Ebay access down as people sell US Netflix / Xbox / Steam gift cards, DVD / BluRay burners, VHS recorders, MP3 recorders etc etc etc...?

      You could also include cheap chinese products that infringe on intellectual property

    Just use Bitcoin and make it available as an option on your website. We needed a good reason for Bitcoin to step up, well here it is.. use it.

    Last edited 10/02/16 1:13 pm

      Knowing how Bitcoin works both in terms of technology and politics, I wouldn't touch it with a ten foot pole at the moment.

        Care to elaborate? To me, Bitcoin seems like a great solution for the problem of money being blocked, frozen, censored or restricted at the whims of private companies.

        We should be free to spend our money on whatever the hell we want, not what Paypal considers right.

          I agree, Paypal absolutely shouldn't be restricting what services you interact with. The problems with Bitcoin may be a little difficult to understand at first blush. There are a lot of sides to the story, but I'd recommend Mike Hearn's write up here as a decent read into the underlying problems.

            Hearn is a paid shill, and his ragequit was the best example in history of being a sore loser.

            Listening to him about bitcoin is like listening to Judas about Christianity.

              It would be foolish to listen to just one side of the equation. I'm a developer myself, I've done a lot of research on Bitcoin over the years. I've listened to the main arguments from everyone involved. You may not like Hearn or the way he left Bitcoin, but the assessment he gave in the article I linked is accurate, with only a handful of exceptions.

              Don't buy into the Reddit propaganda. The people who frequent those boards are people who have significant time and money tied up in Bitcoin under the false notion that it's an investment currency and not the transfer currency it was designed to be. They have a vested interest in keeping the currency's reputation clean to try to attract growth.

              If there are any particular elements of Hearn's post you disagree with, give me your view and I'm happy to talk about it with you. If you dislike his view solely because of who he is, then your opinion on the technical and political content of his post is worthless.

      It's bad enough trying to be a concienscious adult with cash, cheques, credit cards and debit cards without adding more skunge like Bitcoin to cramp our style.
      The situation is becoming worse now by having to carry a wallet full of plastic around, when in the past REAL WORLD a wallet with notes, a pocket with a few coins and a cheque book were enough for daily survival.

        You totally miss the point of Bitcoin. Bitcoin is "free" money (free as in speech) and combines the advantages of cash money (like independence, self-ownership, restriction free) with the efficiency of digital money (fast and instant payments, either face to face or world wide).

        Bitcoin is what scares the monopolists who are currently in power, like banks, visa, and paypal.

        Seems a great opportunity for us, the mass audience of regular folks.

          Spot On, plus it has been recognised as legal by those in power. :)

    This article is incorrect. They blocked one vpn provider because they haven't structured their business correctly to receive paypal payments in a inconspicuous fashion.

    I just paid a VPN provider via paypal about 2 hours ago. In fact that's how I pay all my providers (i have several for different use case scenarios - one for home, one for work, one for removing geo-blocking, one for SOCKS5 proxies and one I share with family members)

    Last edited 10/02/16 2:46 pm

      They also blocked unblock-us, definitely not just one.

    PayPal has gone from disrupting the establishment to being the establishment pretty fucking rapidly

    Eh, worst case I'll use my debit card instead.

      Some of the indexing sites have had issues with PayPal and other established payment providers doing the same thing - including 6 month fund freezes, and some that are still around have moved to bitcoin

      "I'll use my card instead" depends on if they can get access to a payment processing facility. Whilst PayPal's requirements are potentially strict from this one case, they are a lot less stringent then getting PCI-DSS certification in order to directly accept online credit card payments through Visa or MC.

        I've just signed up using my debit card and it went through with no problems

    Unotelly blogpost is light on details. Maybe they just don't want to pay PayPal fees anymore and just "blaming" Paypal so their customers accept it easier.

    Just buy a lifetime subscription to a VPN through StackSocial. They tend to offer plenty of lifetime subscriptions on the cheap. It would show up in your PayPal account as a purchase through StackSocial as opposed to the VPN provider. (https://assets.stacksocial.com/collections/tag-cyber-security)

    The difference between Uno and your bog standard VPN provider is the Uno was openly set up and designed to get around region restrictions and access blocked content.

    Well I'm fine for the next couple of months as I paid for a whole year via PayPal. What's another alternative to PayPal and credit cards as a payment method (I'm not doing Bitcoin)?

    Hahaha, you have no power here... seriously though that's not going to fix the issue

    Hrm, correct me if I'm wrong but this headline indicates several vpn's have lost Paypal but only one is actually mentioned. Seems a bit click-baitey to me.

    Let's remember that this VPN markets its primary feature as a way around geoblocking for Netflix hence it being in the spotlight. There will be heaps of VPN's still with Paypal. I just googled and found 5 of them in a few seconds.

      We're hearing that a few more VPNs have been targeted, too -- it's not just one.

        We're hearing that a few more VPNs have been targeted, too -- it's not just one.
        Is that in the same category as:
        It is alleged
        an anonymous source has informed us

        because without the company names "We're hearing" is just an rumour

          Um, no. UnoTelly, UnblockUS, and Getflix -- how's that for a start.

            Point taken, but again these are all VPN services that market themselves as a way around geoblocking primarily for Netflix.

            As we all know there are plenty of VPN's around that focus on privacy. On the surface it looks to me that (currently) Paypal have their sights aimed at VPN's helping people breach Netflix's terms. Whereas the headline indicates a sweeping attack on all (or at least the major) VPN's.

            My point being, which I stand by, is that there was a hint of click bait to this title which is disappointing to see. You're better than that Gizmodo.

    It is their loss. If people want to use VPN they can still use their credit cards and PayPal can suffer in their jocks :)

    Paypal have been working for the MAN for years now. Enforcing policies that they themselves should not have the right to police. They are not the law. If it becomes illegal, then that is fine. But they seem to work for the MCAA and RIAA.

    BTW, if your interested. Look up 'allofmp3', that was a legal (although grey) MP3 download service that was based in Russia. Paypal blocked them, along with other AMERICAN credit card companies. Effectively shutting down a legal business.

    My Unblockus PayPal payment was rejected yesterday

      Paypal have suspended unblock-us, happened to my mum last week. I used a credit card for payment so no issues. I genuinely hate paypal, and only use it for ebay payments.

      Last edited 11/02/16 8:57 am

    Geez, PayPal. You used to be cool. Now you've sold to Da Man!

    If Paypal wants to play this game, then fine, I will use Bitcoins as an alternate payment method, or simply my credit card....

    Technically they are breaching the terms of use and PayPal are well within their rights to limit their accounts. PayPal are just covering their asses.

    As a user, it's only a minor inconvenience.

    This is great news for Stripe (alternative to Paypal), they'll watch usage go through the roof.
    Payment providers need to be careful about how much they 'police' the payments market - especially since I like using a VPN service when I use open Wifi networks/Hotel Wifi as I don't trust them.

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