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Author Topic: Running a raffle without raising the wrath of PayPal?  (Read 12551 times)

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Offline LadyMoondancer

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Running a raffle without raising the wrath of PayPal?
« on: July 18, 2012, 04:43:02 PM »
Sooo my understanding is that it's tricky to run a raffle using PayPal.  Does anyone have any advice?  I'm planning to raffle off Ditzy Doo the Muffin Queen.  (Please don't PM me about it yet, though.)

I was thinking--what if I "sold" a little pony jpg or something, and people were enrolled for a "chance at a free gift" (Ditzy) for buying the adoptable . . . would that work?   Will PayPal be tipped off if anyone uses the word "raffle" or anything like that?

[moving to TS ~ good luck with the raffle! ~ hathorcat]
« Last Edit: July 18, 2012, 11:02:21 PM by hathorcat »
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Offline Jinxxy

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Re: Running a raffle without raising the wrath of PayPal?
« Reply #1 on: July 18, 2012, 05:09:13 PM »
I remember a raffle for a Mimic not long ago where someone requested that the payments say nothing about a raffle in them, She had you just put your Arena name instead.... So I think there are ways around it for sure! I'm not sure exactly what to do though as I'm a paypal n00b too!

Hope to see the Muffin queen for raffle soon! I know I'd buy a ticket!
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Offline cobalte

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Re: Running a raffle without raising the wrath of PayPal?
« Reply #2 on: July 18, 2012, 05:22:46 PM »
You'd have to get approval from PayPal. From their FAQ:

Quote
Does PayPal prohibit transactions associated with games of skill or sweepstakes?

Yes. In addition to the restrictions on gambling activities outlined in the Acceptable Use Policy, PayPal also prohibits transactions for non-gambling activities involving an entry fee and prizes, including games of skill or sweepstakes, unless the merchant has obtained prior approval. Merchants seeking approval under this policy will need to provide PayPal with information clarifying the legality of their service in all jurisdictions in which they do business as well as information regarding how they block users from jurisdictions where their services may be prohibited. PayPal reserves the right, at its sole discretion, to approve or decline merchants based upon their business model and the supporting information provided by the merchant.

If you wish to enquire about approval under this policy, please send a short business description and your website URL to aup@paypal.com.

[link]

As soon as they see 'raffle' in payment descriptions, you get in smelly doo-doo.

Offline Wysteria

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Re: Running a raffle without raising the wrath of PayPal?
« Reply #3 on: July 18, 2012, 07:45:33 PM »
As someone said, that's the way I did it. Just made sure people put their board name and I didn't have any problems;)

Offline SurfStar

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Re: Running a raffle without raising the wrath of PayPal?
« Reply #4 on: July 18, 2012, 07:53:08 PM »
Additionally, I would have people send the payments as Gift/Money owed.

Otherwise, technically people could claim for 'item not received'.

Offline hathorcat

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Re: Running a raffle without raising the wrath of PayPal?
« Reply #5 on: July 18, 2012, 11:01:37 PM »
I am going to move this to TS for you as I am sure you will get the best advise there :)
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Offline CrazyCatLady

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Re: Running a raffle without raising the wrath of PayPal?
« Reply #6 on: July 18, 2012, 11:22:03 PM »
The last time I tried to have a raffle (a year or so ago) the very first person to buy tickets put "Good luck with your raffle!" on their payment.  Even though I asked several times not to use the word raffle.  My account was locked up for over a week while PayPal kept asking me to prove I was a non-profit.  It all depends on if people can follow instructions (usually they can't).

Offline NoDivision

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Re: Running a raffle without raising the wrath of PayPal?
« Reply #7 on: July 19, 2012, 12:25:33 AM »
I've done a raffle twice with no issues, but it all comes down to whether or not the people sending you money are responsible enough to send money correctly.

I think the idea of selling a digital image is a great idea. That way you are receiving payment for an actual item, and you can also use that as your "code word" if you will.

Offline StoryDreamer

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Re: Running a raffle without raising the wrath of PayPal?
« Reply #8 on: July 19, 2012, 12:33:13 AM »
Let them receive a very special pony comic scan :)
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Offline babystarz

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Re: Running a raffle without raising the wrath of PayPal?
« Reply #9 on: July 19, 2012, 04:19:28 AM »
The last time I tried to have a raffle (a year or so ago) the very first person to buy tickets put "Good luck with your raffle!" on their payment.  Even though I asked several times not to use the word raffle.  My account was locked up for over a week while PayPal kept asking me to prove I was a non-profit.  It all depends on if people can follow instructions (usually they can't).

Yep, this is the risk - you have to rely on every single person who is buying the tickets to not screw up and mention the raffle and freeze your account.
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Offline Maniah

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Re: Running a raffle without raising the wrath of PayPal?
« Reply #10 on: July 19, 2012, 07:27:53 AM »
I used Chipin.com to run my raffle. It handles paypal payments, so you still lose a fee on each entry. but I figured Paypal was less likely to whine if they were getting a cut, you know? I just titled my Chipin as "Donation for my cat's Vet bill." Because the name is what goes through to Paypal if people decide to chip in. And I don't think it provides any place for the contributers to enter text to paypal, but I'm not 100% certain.  I made sure to list in the post I made, that No one was to send any message with payment. Chipin recordss each person's email address, and how much they pay you so there is no need for anyone to say anything.

Then when it was over, I knew that my tickets were $2 each, or $10 for 10. So if someone chipped in $30, then they got 30 entries. If someone chipped in $8, then I knew they got 4 entries. So I made a list with each person and their ticket numbers, and went to Random.org or .com I forget which.. And I drew the winner that way.

In any case.. That's what worked for me.

Offline ponylady

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Re: Running a raffle without raising the wrath of PayPal?
« Reply #11 on: July 19, 2012, 11:07:40 AM »
Yeah, I think you have to worry to much about someone screwing up and writing Raffle. But lots have done it with success also so I guess it's a 50/50 chance you have to take.

I do think though Maniah's idea is something worth looking into if you do not want any trouble.  It sounds like it worked well for her so it might be worth a shot.

Good Luck with whatever you decide to do!  :)
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Offline Maniah

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Re: Running a raffle without raising the wrath of PayPal?
« Reply #12 on: July 19, 2012, 03:36:00 PM »
I ought to mention that if you DO go with Chipin, and you expect to get a lot of small payments, you can apply to have your paypal fee lowered for transactions that are $10 or less, if you do a lot of business in small transactions. I found out about this After the fact, but I am glad I did!

Offline Ringlets

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Re: Running a raffle without raising the wrath of PayPal?
« Reply #13 on: July 20, 2012, 12:18:52 AM »
TBH running a raffle is always risky when it comes to Paypal. It only takes one person to forget and type "raffle" or something to that effect and.. well.. you know the rest  :yikes: . There are some good suggestions here though to try and avoid that situation if you still wanna  do your raffle ;)  Hopefully everything goes well for you, and  I'm sure Ditzy will easily find a new home whatever you decide :hug:
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Offline RockinPrettyBeats

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Re: Running a raffle without raising the wrath of PayPal?
« Reply #14 on: July 21, 2012, 04:45:48 PM »
I agree it's risky. It's silly and I don't why we can't do what we want. Maybe if you had a merchant account with google or something? Or maybe you can do a raffle through the mail?

I mean, I'd send $1 cash to enter a raffle. Not much risk if you ask me.