Ever since PayPal published its new terms and conditions for file-hosting and newsgroup sites, it has become clear that the company is determined to ensure that its services are not utilized for anything that’s related to copyright infringement.
Back in July, PayPal banned several file hosting websites, including Putlocker, DepositFiles and MediaFire, and now, according to TorrentFreak, Usenet resellers such as XSUsenet, Usenet4U and EasyUsenet have suffered the same fate.
And the worst part is that the accounts of the affected resellers have been frozen for 180 days. This could mean not only the loss of customers who prefer to pay via PayPal, but also the loss of some serious amounts of money.
However, while some of these Usenet providers admit that they’ve been violating the terms and conditions imposed by the payment processor, at least one company argued that PayPal never requested any information.
According to its terms, merchants must provide PayPal with free access to their services, information about how they respond to law enforcement, a direct point of contact, and details regarding their procedures to remove copyright infringing material.
Currently, there are some file-hosting and Usenet providers that still use PayPal for payments, but considering the strict regulations, it’s likely that their numbers will continue to drop.