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Paypal and Adult sites | Forum

Abbey
Abbey Jun 21 '13
Ok, so I've been searching google for a payment provider like paypal that allows adult websites.
I've found pretty much zip.

I do have a question I'd like to put forth.

If I'm not selling adult related material, services, porn or products why can't I use paypal?

I only wish to sell subscriptions for user roles with different permissions, none of them "adult" related at all.

I can't use Zombaio as it's not supported where I live.
Abbey
Abbey Jun 22 '13
Noone? Geez that's a shame....
Oxwall Accessories
Oxwall Accessories Jun 22 '13
good luck Abby. lol I have personally done that search and I can tell you there is a reason I had the Zombaio plugin made for oxwall. There is not really to many other options out there. Paypal will not take part in any website containing adult material. You can however use them to pay your adult talent behind the scenes! You can also send them an email at AUP@paypal.com (I think) and ask them to review your website for consideration. 
Den Team
Den Jun 23 '13
Abbey,


What about CCBill? As I know it suports adult sites. 

Oxwall Accessories
Oxwall Accessories Jun 27 '13

Quote from dave You have to read the fine print in the TOS, this goes for all services you use.  I have no problem with using paypal, you have to know how to do it.   First you accept it as a gift, not a donation, not a subscription, not a recurring value, not a sale.  You make a button that goes through a generic named account that you use for all your paypal services. I use mine for all my sites all 27, they all get processed by the same account.  But it is done as a gift.  Then when that process is over and you grab the IPN values with your listener, at that point the paypal process is over, they could care less after that. You have the data so process the customers transaction on your end and your done.     The secret to not violating the pappal TOS is to not process it as a SALE from an adult website, if you flame yourself of course your going to violate the TOS.  But anyone can send you a gift from anywhere and from my experience it does not violate the TOS as i would never do that.   You can do the memberships manually and have a generic page outside your domain (even from another non adult domain) process the gift.     I believe (correct me if i am wrong) what they are saying in their TOS is that you cannot process a sale transaction for a adult product or an adult service sale using paypal.  But hey if i want to accept a gift from someone and in return give them some freedom on the site, thats is not a violation now is it.   Think of it this way,  if  someone wants to use their email address at paypal to send my email at paypal 10 bucks, paypal cannot tell me which website to give that gifter some time on, it is a legal transaction from person to person as a gift.   what i do with the money is my business.


Thats called tax evasion and is illegal! I highly recommend that you don't do this unless it is in fact a gift!  
Abbey
Abbey Jun 27 '13
Zombaio isn't supported in New Zealand, I looked into CCBill and I can't remember the reason I can't use that, it might not be supported here either.



The Forum post is edited by Abbey Jun 27 '13
Oxwall Accessories
Oxwall Accessories Jun 27 '13
In the U.S.A any amount earned over $600 even as a gift has to be filed with a 1099. Even If you are not reporting your "gifts" paypal still reports them (this is a new thing). And YES gifted money is included.  It is up to you on your tax form to declare and what not. FYI, gifted money (unless you use the one time exemption) is technically taxable:  i.e. if Grandma gives you $100 for your birthday vs. Grandma gives you $10,000 one time gift to avoid taxes. Further more, how does one expect Paypal (and others) to differentiate what is a gift and what is not?  If you don't pass the threshold, the point is mute.  But if you do pass the threshold and you happen to have gift money and business money, then the IRS will expect you to clear it up when you file. Just saying...I was just looking out for Abbey and you as well Dave. 

Check out this link as "gift" scams have been being used for a long time. On a side note if you choose to pay taxes on your paypal earnings before a red flag is waived then you should be fine. 


http://answers.yahoo.com/question/index?qid=20120819203102AAeGWfy


https://www.paypal-community.com/t5/About-Business/1099k-if-money-sent-as-gift/td-p/602441

some of this was copied and pasted from this second link cause i didnt feel like typing the same thing.


The Forum post is edited by Oxwall Accessories Jun 27 '13
Oxwall Accessories
Oxwall Accessories Jun 27 '13
Also I am not saying your method is a scam so please dont take that the wrong way. ;)
Abbey
Abbey Jun 27 '13
Thanks OxwallA, I would never use the mentioned method anyway, I want something automatic, the thought of manually changing peoples User Roles doesn't appeal.
Abbey
Abbey Jun 27 '13
Would be great if someone made a plug in that made it so you could use user credits instead of money
Oxwall Accessories
Oxwall Accessories Jun 27 '13
I understand what you meant Dave. When sending a payment through paypal you have the option to send as a gift. What I am saying to you is that paypal still reports those "gifts' to the IRS. And If they do and you don't, then you could be audited. When that occurs  it will ultimately be up to the IRS to decide if your method is fraud or if it is in fact gifts that you were receiving.  My advice to you is that you report anything over $600 and pay taxes on it to avoid trouble!