PayPal Freezes Account of X-Com Remake

October 10, 2011 -

PayPal can't seem to be able to differentiate between legal commerce and nefarious activity taking place in its service. For the third time in recent memory the leader in virtual currency has frozen the account of an indie developer over the money it has generated for making and selling a game. Game developer Goldhawk Interactive says that PayPal has locked down around $4,300 because its account has generated a lot of funds in a very short amount of time. While the money won’t shut down the development of its X-Com-like game Xenonauts, the company says that all the bells and whistles that it wanted to include may be off the table.

"There's enough left in our corporate bank account to get the game finished," designer Chris England wrote on the Xenonauts site. "Whether we'll be able to implement all the 'nice-to-have' features on that budget (such as our new UI style) remains to be seen, but we'll be able to complete it to the original spec on the funds we currently have.

However, losing our only source of income is obviously going to be disruptive to the project, as we were getting a good source of income from pre-orders up to this point," England said. "It's also not the ideal way to mark the start of my full-time work on the project. However, I'll keep you guys posted on how things turn out.
"

This is not the first time PayPal has flagged a game developer's account for generating a lot of money from sales. In September of last year PayPal froze the account of Minecraft maker Mojang because they generated $750,000 in sales. The makers of Project Zomboid had their account locked in May for much the same reason.

This is just speculation, but maybe this has less to do with PayPal and more with some sort of Homeland security edict about large funds being funneled through services such as PayPal. We honestly don't know the reasons for these lockdowns, but we do know that when this happens it can have a devastating effect on a small developer.. Not giving users some sort of notice seems wrong. If PayPal really wants entrepreneurs to use their services they need to get better at communicating with them when there's a problem such as this. People will understand more if they know what's going on and get some sort of due process.

Source: RPS by way of Kotaku. Thanks to Uncharted NES for the link.


 
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Papa Midnighthttp://www.pcgamer.com/gta-5-pc-patch-reduces-cpu-usage/04/20/2015 - 9:00pm
PHX Corp@zippy I'm Probaly going to Warn my uncle who is a techie that it may come out at the end of july04/20/2015 - 8:45pm
Matthew Wilson@zippy I want windows 10 badly, but that is because I am stuck on 8.1 yuk. that being said the new dx12 looks very good, and the reported performance gain from it.04/20/2015 - 8:00pm
ZippyDSMleeMy body is readY! http://www.afterdawn.com/news/article.cfm/2015/04/20/amd-microsoft-to-launch-windows-10-at-the-end-of-july04/20/2015 - 7:54pm
PHX CorpI may have posted this before but a leaked email from Sony pictures has the MPAA written all over it http://www.extremetech.com/computing/203654-leaked-sony-emails-show-mpaas-opposition-to-fair-use-confirms-users-are-viewed-as-thieves04/20/2015 - 4:53pm
Mattsworknameyet another reason the DMCA should be dismantled and rewritten04/20/2015 - 4:41pm
Matthew Wilson@zippy that is worse than the ESA thing.04/20/2015 - 4:26pm
ZippyDSMlee0-o good luck with that car companies, http://www.autoblog.com/2015/04/20/automakers-gearheads-car-repairs/04/20/2015 - 4:07pm
Andrew EisenYes, hence my subsequent shout.04/20/2015 - 3:15pm
Matthew Wilsonwhile the article itself isnt that great, but the point is still valid.04/20/2015 - 3:14pm
Andrew EisenProfessionals do need to be mindful of what they say on social media though. That's true.04/20/2015 - 3:11pm
Andrew EisenWell, it was almost a decent article from Techraptor. Some day. Some day...04/20/2015 - 3:09pm
Matthew Wilsonhttp://techraptor.net/content/gamings-pr-problem both game devs and pr people alike need to to keep in mind, when your on twiter you are also representing the company you work for.04/20/2015 - 2:39pm
E. Zachary KnightI don't really care either way, but that was just my understanding based on previous reads.04/20/2015 - 2:13pm
E. Zachary KnightBut now I am confused. I thought Johnny Storm was the adopted one, but the dad is black. Does that mean that Sue is adopted or is it just an interracial marriage with existing children?04/20/2015 - 2:12pm
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E. Zachary KnightI agree. I looked but could not find any settings for DMs. So either there is no opt-out or they are slowly rolling it out one block of users at a time.04/20/2015 - 1:11pm
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Matthew Wilson@james the issue is that it is way to easy to make a troll twiter acount. if I had it my way I would set it so you can fallow anyone, but if you want to send tweeta, you have to pay a one time 5$ fee.04/20/2015 - 12:38pm
 

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