PayPal Bans BitTorrent VPN / Proxy Service

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http://torrentfreak.com/paypal-bans-bittorrent-vpn-proxy-service-130427/

PayPal is widely known for their aggressive stance towards BitTorrent sites, Usenet providers and file-hosting services, and now this policy has also been actively applied to a VPN provider.

PayPal has stopped providing service to the Germany based VPN provider GT Guard. In addition, all the company’s funds have been frozen.

GT Guard is a relatively small provider with about 450 active users, 90% of whom pay through PayPal. The company targets BitTorrent users who use the VPN and proxy service to download anonymously while bypassing throttling Internet providers.

GT Guard’s owner Mike was taken by surprise by PayPal’s decision as he is merely providing an anonymizing service to his customers. Initially PayPal stated that GT Guard violated the terms of service because it linked to adult sites but later on its affiliation with BitTorrent became a problem.

In an email received yesterday, PayPal’s Brand Risk Management department explains that “file-sharing, BitTorrent and Usenet websites, as well as similar services, require prior approval from PayPal.”

This policy has been in force since last year and has resulted in PayPal banning many file-sharing related services. However, the same strict demands generally don’t apply to a VPN provider.

[GhostShip]

Whilst a convenient online payment service for many the bottom line is simply that folks can continue to use things called "letters" containing cheques or postal orders etc, legitimate companies offering legitimate services usually have business addresses and this traditional payment method has much to recommend it