Tips and Tricks HQ Support Portal › Forums › WP Affiliate Platform › Can Paypal close my account by using 2 levels?
Tagged: Paypal and MLM, Paypal TOS
- This topic has 4 replies, 2 voices, and was last updated 6 years, 9 months ago by sitiosnegocios.
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February 2, 2018 at 1:04 pm #14670sitiosnegociosMember
Dear
According to the PAYPAL TOS, in Acceptable Use Policy, does not support MLM business
If I use WPAffliliates in 2 levels, can Paypal close my account?
In this case, what other payment platform can I use?
Thank you
Acceptable use Policy
https://www.paypal.com/us/webapps/mpp/ua/acceptableuse-full
Prohibited Activities
You may not use the PayPal service for activities that:
1- …
2- …
3- Relate to transactions that (a) show the personal information of third parties in violation of applicable law, (b) support pyramid or ponzi schemes, matrix programs, other “get rich quick” schemes or certain multi-level marketing programs, (c) are associated with purchases of annuities or lottery contracts, lay-away systems, off-shore banking or transactions to finance or refinance debts funded by a credit card, (d) are for the sale of certain items before the seller has control or possession of the item, (e) are by payment processors to collect payments on behalf of merchants, (f) are associated with the sale of traveler’s checks or money orders, (h) involve currency exchanges or check cashing businesses, (i) involve certain credit repair, debt settlement services, credit transactions or insurance activities, or (k) involve offering or receiving payments for the purpose of bribery or corruption.
February 2, 2018 at 1:47 pm #77212wzpModeratorDear
According to the PAYPAL TOS, in Acceptable Use Policy, does not support MLM business
If I use WPAffliliates in 2 levels, can Paypal close my account?
You are asking us to render legal advice. We can offer observations, state opinions, and recite informational references; but we cannot give you advice, which can be construed as “practicing law.”
With that said…
- In the United States, an MLM is generally defined as ANY business model in which program participants earn income based MOSTLY on down-line referral activities instead of actual product sales.
- If you cannot honestly discern if your proposed business model meets this definition; apply “The Duck Test…”
If it looks like a duck, swims like a duck, and quacks like a duck, then it probably is a duck.
— James Whitcomb Riley (1849–1916)
- The PayPal rules you cited are mostly imposed (and passed down to you) by the credit card companies; Visa, MasterCard, et al. You will be hard pressed, to find a payment processor (PayPal, Stripe, et al) that will permit something contrary to credit card company rules.
- If you have your heart set on “finding a way,” please seek licensed legal advice.
February 2, 2018 at 2:57 pm #77213sitiosnegociosMemberSorry for my poor use of the English language, it is because I am Spanish and I write with a virtual translator, since apparently they do not have support in Spanish.
I am not requesting legal advice, I bought the WPAffiliate Platform plugin, which supports working on 2 levels and it would be excellent for the vendor to advise on convenient payment platforms to avoid problems.
I just want to know if I can use it with Paypal or not, I thought they could help me according to their experience.
Are there WPaffiliate Platform users who are using the plugin in 2 levels and working with Paypal ?. That’s just what I want to know.
If not, what other payment gateway are you using?
Thank you very much for the help you can give me.
February 2, 2018 at 10:57 pm #77214wzpModeratorYes, the plugin will work with PayPal. But they are not the appropriate persons to ask about how you should structure your affiliate program.
What you are inquiring about, is called a “Two Tier Affiliate Model.” Have you read this documentation?
https://www.tipsandtricks-hq.com/wordpress-affiliate/how-to-use-two-tier-affiliate-model-112
Please pay careful attention to the warning about PayPal, in the documentation. Essentially, under a 2 tier affiliate model; you can use PayPal to accept payments, but you cannot use PayPal to payout the commissions.
February 3, 2018 at 1:45 pm #77215sitiosnegociosMemberDear:
Thank you for your helpful reply:
Yes, I have read the documentation https://www.tipsandtricks-hq.com/wordpress-affiliate/how-to-use-two-tier-affiliate-model-112, but with the vertiginous changes in the policies of the websites , on the internet you never know if an undated publication is updated or not.
But what you answered is what I want to know. Thank you again.
- In the United States, an MLM is generally defined as ANY business model in which program participants earn income based MOSTLY on down-line referral activities instead of actual product sales.
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