Issues with online payment

Last Updated: 09 October 2021

When we pay online (say, using Paypal) or using credit cards, debit cards, this identifies us in the transaction. Credit card companies like Visa, Mastercard also get this information. This puts users under surveillance (unless the transaction is under the user’s name) and this is an injustice. These payment gateways also pose a threat to our freedom in many ways. They use their power to censor, discriminate, spy on users.

We need online payments which respect users' freedom - do not spy on them and from which nobody can be excluded under any conditions, just as cash does not spy on people and does not exclude anyone to use it. Also, obviously, there should not be any requirement to use proprietary software for the payments. The payment system must be accessible through free software.

• The Cost of Going Cashless article by NewYork Times is a good read. The main points are: (1) Cashless transactions mean profit for credit card companies and efficiency for merchants, but merchants add the extra cost due to transaction fees for customers to pay; (2) the cashfree systems puts users under surveillance; (3) cashless systems shut off people who don’t have bank accounts or low credit score. Teenagers, low income families, and minorities mostly use cash. In short, cashless only shops can lead to discrimination.

• Paytm shared user’s data with Indian government.

• Paypal shut payments to Wikileaks. These intermediaries are not neutral. They can cut off access to things they don’t like or pressured into cutting off by the government.

• AMEX lowered a person’s credit limit because they shopped at Walmart and AMEX didn’t like that.

• Visa and Mastercard are Trying to Dictate What You Can Watch on Pornhub.

• Paypal is denying service to Palestinians. An online payment system ought to be neutral like cash. Paypal uses its power to exclude groups it does not like.

• Paypal censored erotic literature.

• Paypal froze account on a Minecraft developer without explanation.

• PayPal blocked the account of a Russian human rights organisation, which supported political prisoners arrested at Bolotnaya Square.

• Paypal shuts accounts whose business donates to wikileaks.

• PayPal froze $45,000 of community donations to the Diaspora project without any reason.

• PayPal blocks payment for books that have “Iran” in their name.

• Mastercard took users' personal data from Facebook.