Hi everyone,
The bigboy of payment solutions online, Paypal, Is hurting more online businesses.
Randomizers are a no-no. If your program is MLM or has more than one level below - no-no.
Here is from Paypal's Acceptable Use Policy.
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Multi-level Marketing, Pyramid and Matrix Programs
You may not use PayPal to send or receive payments for any form of multi-level marketing programs (including online payment randomizers), as well as matrix, pyramid and Ponzi schemes, "get rich quick" scheme, or other similar ventures.
Multi-Level Marketing
Multi-level marketing plans, also known as "network" or "matrix" marketing, include any business in which a person receives proceeds from his or her own sales of goods or services, of recruited members, or any combination thereof. Similarly, PayPal prohibits as a Multi-Level Marketing plan any business in which payouts occur at two or more levels (both by the individual who actually sold the product as well as by the person(s) "upline" that recruited the selling individual).
Pyramid Schemes
Pyramid schemes, including Gifting Clubs and Ponzi schemes, involve the exchange of money in relation to the process of enrolling other people into the scheme. PayPal includes in its definition of "pyramid schemes" any system in which a hierarchy is created by people joining under others who joined previously, and in which those who join make payments to those above them in the hierarchy ("upline"). Pyramid schemes are prohibited as a form of investment fraud by federal laws and by the laws of each of the fifty individual states. PayPal considers online payment randomizers to be a type of pyramid scheme because the majority of commissions are paid for recruitment of new members, and typically operate by random placement within the program.
Matrix Programs
PayPal prohibits as a "matrix program" any business model that involves the exchange of money primarily for the purpose of being added to a waiting list for a product. In these instances, the individual at the top of the list receives the product only after a set number of people have joined below him or her.
"Get Rich Quick" And Other Related Businesses
Get Rich Quick schemes include any type of self-employment, start-up businesses, or investment opportunity where the claims of profit or returns on investment are unrealistic or unsupported. By law, if a business opportunity costs $500.00 USD or more, the promoter is required to support any claims regarding earnings or profits with written documentation.
In determining whether a website or account violates our Pyramid, Multi Level Marketing, and Get Rich Quick Schemes Policy, PayPal will consider some or all of the following factors:
* Offering commissions to recruit new members
* Requiring new distributors to purchase costly inventory or "start-up kits"
* Members' profits are derived from recruiting new members or from the sales of newly-recruited members ("downline"), rather than their own sales
* Unrealistic or unsupported promises regarding profits/return on investment
* Percentage of the company’s goods sold by non-distributor
* Businesses warned against by the Better Business Bureau, state Attorney General, Federal Trade Commission (FTC), or any state or federal agency
* Flow of money derived from new members predominantly moves "upline"
* Preservation of the business rests on the exponential growth of new members or customers
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There you have that part.
If you have more questions log into paypal and look at http://www.paypal.com/us/cgi-bin/webscr?cmd=p/gen/ua/use/index_frame-outside and look at all of the catagories they say NO to.
Kenneth R Sword Jr
p.s. Glad I have GreenZap now.
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