PayPal Account Frozen For Buying a CC

[Blazer]

I think PayPal should unfreeze this guys account because the chances that he actually bought a real CC in Tijuana are astronomical! 

 

Paypal Froze My Account After I Bought A Cuban Cigar

 

 

•  

Nathaniel Parish Flannery ,  

 CONTRIBUTOR

I write about economic growth, political risk and Latin America 

Opinions expressed by Forbes Contributors are their own.

 

A worker harvests tobacco on a farm in Vinales, Cuba. (Photographer: Dado Galdieri/Bloomberg)

Over the last few months, relations have warmed between Cuba and the U.S. and many Cold War era restrictions on trade and travel have been lifted. I don’t think PayPal has been following the news. In 2016 the U.S. updated its guidelines to allow travelers visiting Cuba to bring back up to $100 dollars worth of cigars. The new rules are far from a total embrace of free trade with Cuba but they are an important step in the right direction.

The U.S. Department of Treasury’s Office of Foreign Asset Control (OFAC) published new guidelines which specifically state, “OFAC is adding section 515.585(c) to authorize individuals who are persons subject to U.S. jurisdiction and who are located in a third country to engage in the purchase or acquisition of merchandise subject to the prohibitions in section 515.204, including Cuban-origin goods.”

This article from the law blog lexology from March, 2016 explains:

The Obama administration has decriminalized smoking Cuban cigars while traveling abroad. Americans can now enjoy their favorite cigars while sunning on a beach in the Bahamas or relaxing in the Tuscan countryside without fear of criminal prosecution. Consumption of Cuban rum outside the U.S. has also been decriminalized.

 

At the time of the announcement, U.S. Commerce Secretary Penny Pritzker released a statement explaining, “Today’s amendments build upon President Obama’s historic actions to improve our country’s relationship with Cuba and its people. These steps not only expand opportunities for economic engagement between the Cuban people and the American business community, but will also improve the lives of millions of Cuba’s citizens.”

Somehow, however, PayPal still seems to be interested in cracking down on the consumption of Cuban goods. On a recent trip to Tijuana, a friend bought me a Cuban cigar and I paid him back over PayPal. Shortly thereafter I received an email from PayPal saying that my account had been flagged for my possible promotion of transactions of goods prohibited by the U.S. government. I followed the instructions in the email and filed a report explaining that my purchase was made outside of the U.S. and that I consumed the cigar while in Mexico. I received a follow-up email explaining that my account had been frozen.

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According to the new rules, U.S. citizens traveling abroad are allowed to consume Cuban goods. A tourist visiting Mexico City can buy a glass of Cuban rum or an expensive Cuban cigar and pay for the purchase with a major credit card such as MasterCard or Visa. Current restrictions place a $100 limit on Cuban cigars brought back to the U.S. by people visiting Cuba. The ban has been lifted on goods purchased and consumed by tourists traveling outside of the U.S.

I’ve written about Amazon successfully entering Mexico’s e-commerce market. In a country with low credit card penetration PayPal has a chance to expand its business in Mexico’s e-commerce market.

My account, however, is still frozen. So, apparently, PayPal is still figuring out how to do business in Latin America when it comes to allowing users to purchase and enjoy Cuban goods.

 

[Corylax18]

It sounds like they froze his account for being an idiot. Or the story is completely fake. Why in the world would you put "Payment for a Cuban Cigar" in the paypal description? And why would you use paypal (and pay a fee) to pay your friend back for a single cigar? Did Ryan Lochte write this?

[canadianbeaver]

Alcohol and tobacco are not allowed on PayPal, no matter where they are from. So keep his mouth shut and he would have been fine.

[Ryan]

I was just reading an article this morning about how a Paypal transaction was stopped because it contained the word "Cuba".

Not even Cuban goods, simply a book with the word "Cuba" in the title.

Paypal have had a no-tobacco policy for a while though. That is not Cuba-related.

http://boingboing.net/2016/08/17/paypal-halted-a-transaction-be.html

 

 

[Blazer]

3 hours ago, Ryan said:

I was just reading an article this morning about how a Paypal transaction was stopped because it contained the word "Cuba".

Not even Cuban goods, simply a book with the word "Cuba" in the title.

Paypal have had a no-tobacco policy for a while though. That is not Cuba-related.

http://boingboing.net/2016/08/17/paypal-halted-a-transaction-be.html

 

 

Well they must not enforce it very often. There are a number of mail order cigar shops that accept PayPal here in the US.

 

 

[El Presidente]

6 minutes ago, Blazer said:

Well they must not enforce it very often. There are a number of mail order cigar shops that accept PayPal here in the US.

 

 

they certainly enforce it outside of the US. 

Only takes one moron to put "for purchase of tobacco" 

[Lant63]

A store can be approved for cigar purchases. However, personal sales are prohibited and enforced regularly.  Yes, people are stupid and put, "5 Monte 2" in the description.  I speak from experience.  

[ChefBoyRG54]

A store can be approved for cigar purchases. However, personal sales are prohibited and enforced regularly.  Yes, people are stupid and put, "5 Monte 2" in the description.  I speak from experience.  

Then they say "but i thought cubans were legal now"

Smh

[El Presidente]

I can give those buying/selling cigars through PayPal a tip. DON"T LEAVE ANY MONEY IN THE ACCOUNT. 

When they close the account, they will freeze your money for 6 months. 

 

[Ethernut]

31 minutes ago, El Presidente said:

I can give those buying/selling cigars through PayPal a tip. DON"T LEAVE ANY MONEY IN THE ACCOUNT. 

When they close the account, they will freeze your money for 6 months. 

 

DEAD NUTS RIGHT!! Instant transfer those funds!

[Lotusguy]

Any cigar sale without a license will lead to a suspension - Cuban or not.

[jwr0201]

And that's what they get for thinking! 

[helix]

All so easily avoided. Can't fix stupid. LOL .

[wabashcr]

16 hours ago, Blazer said:

Well they must not enforce it very often. There are a number of mail order cigar shops that accept PayPal here in the US.

 

 

You can apply for a license or exemption of some sort from PP.  But I hear it's a huge pain in the ass, and even inquiring about it will lead them to suspend your account until you've completed it.  So if you ask about getting the license, find out it's too much hassle and not worth it, tell them you changed your mind, they still won't unfreeze your account.

Mentioning tobacco in a PP transaction will not only get both parties' accounts frozen.  They have been known to open investigations, digging into your transaction history, trying to sweep up others that may have transacted with you in the past.  When there's any doubt, they err on the side of closing your account, and making you jump through all the hoops of getting reinstated.  That can range anywhere from a simple phone call to downright impossible.  They take these things pretty seriously.

[Habana Mike]

Pro tip - leave no comments......

[scap99]

On 8/18/2016 at 11:55 AM, Corylax18 said:

Did Ryan Lochte write this?

It's obvious he's illiterate, so I'm guessing no.

[Danimalia]

On 8/18/2016 at 9:41 AM, Blazer said:

I think PayPal should unfreeze this guys account because the chances that he actually bought a real CC in Tijuana are astronomical! 

There's a LCDH in Tijuana. There used to be another place on the other side of Revolucion that had authentic CCs and an espresso bar. But given he basically snitched on himself, it wouldn't surprise me if his Cuban Cigar was bought from the bathroom attendant at the Adelita Bar.