Rafflers Certified Draws
Can Raffle Websites Use Paypal?
Paypal is the currently the most popular payment platform on the planet, but can raffle websites use Paypal to take payments?!
In 2022, over 22 Billion transactions were made through Paypal and this popularity continues to rise year on year! It’s safe, secure and easy to use! That’s why it’s the first choice for many businesses taking online payments from their customers.
Raffle providers across the UK sell tickets via their website so using a trusted payment platform is essential. Furthermore, ticket buyers need to feel confident that their card payment details are kept securely and away from scammers.
Paypal must be their first choice then, right?
Paypal and Online Raffles
Paypal’s view on gambling is very clear. They will not allow any business associated with any form of gambling to use their payment platform to take payments. However, there is a slightly grey area to this.
Paypal state that the following type of business can not use their payment platform..
Activities involving gambling, gaming and/or any other activity with an entry fee and a prize. This includes, but not limited to casino games, sports betting, horse or greyhound racing, fantasy sports, lottery tickets, other ventures that facilitate gambling, games of skill (whether or not legally defined as gambling) and sweepstakes, if the operator and customers are located exclusively in jurisdictions where such activities are permitted by law.
It is surprising then that in some instances, Paypal can be used for online raffle payments. It appears that well established online raffle providers can be approved for Paypal payments. Although the time period is quite vague, it appears that a raffle provider active anywhere between 1 and 2 years+ can apply to use Paypal.
When we spoke to Paypal to get further clarification on this they essentially said that each case is different for every raffle business! That is about as far as we seem to get for answers from Paypal!
What we would like to point out is that it is possible for some online raffle providers to use Paypal initially. This is because they are not honest about their type of business when filling in the application. In some cases, a genuine mistake is made and the online raffle provider is just not aware of Paypal’s policies. However, Paypal do seem to catch up with them fairly sharpish. They will then shut down their account and ask for all money withdrawn from their Paypal account to be returned!
To summarise, only established online raffle providers with a proven track record will be given the option to use Paypal. It can take around 1 to 2 years before Paypal will even consider allowing their payment platform to be used for ticket purchases.
PayPal and Online Prize Draw Payments – FAQ's
Yes, some prize draw websites can use PayPal, but it is not automatically allowed. PayPal has strict policies around prize draws, which means many new or unverified prize draw businesses cannot use PayPal to sell tickets. In some cases, established online prize draw providers with a strong track record may be approved to accept PayPal payments.
PayPal generally restricts businesses connected to gambling, lotteries, sweepstakes, or prize draws with entry fees and prizes. Because online prize draws can appear similar to gambling, PayPal carefully reviews businesses before allowing them to use the platform for payments.
In most cases, new online prize draw websites cannot use PayPal immediately. PayPal usually requires a business to demonstrate a reliable operating history and compliance with their policies. Many prize draw providers report that approval may only be possible after operating successfully for around 1–2 years.
If an online prize draw website uses PayPal without proper approval, the account may be restricted or closed. PayPal may also request that any funds withdrawn from the account are returned, which can cause major disruption for the prize draw provider’s business.
Yes, PayPal is one of the most secure online payment platforms in the world. It processes billions of transactions each year and provides secure payment processing and buyer protection. This is why many prize draw businesses aim to use PayPal once they meet the platform’s requirements.
When entering online prize draws, participants must trust that their card details and personal information are protected. Using recognised payment providers such as PayPal or other secure payment gateways helps ensure safe online payments and reduces the risk of fraud or scams.