Why HYIP’s Do Not Accept Paypal As A Payment Option

I have always researched HYIP’s (High Yield Income Plans) that would
accept a PayPal account as a payment processor option.
And I have repeatedly been disappointed to find that NOT even one of
these plans qualifies.

I do not think Paypal is the issue; as I have never had any problems with
PayPal in the over fifteen years that I have used them as a payment

By process of elimination I believe the problem is HYIP’s themselves.

These High Yield Investment Plans so often DO turn out to be nothing
more than Internet scams and online Ponzi schemes; however, they don’t
get the chance to do much damage because Paypal is so vigilant.
Paypal IS so rigorous in its screening process and rules to
protect its users; that these fraudulent schemes are shutdown very quickly.

Even if these HYIP’s are able to initially obtain a PayPal account or use
one they already OWN, to start their program(s), they will be blocked and
eventually shut down as soon as Paypal realizes what they are doing.

So, again I ask myself, why wont PayPal allow these HYIP’s to use them
as a payment option ?
Is is because unlike all other payment processors PayPal has a dispute and
reolution center that is tough and member-friendly?
Scammers know that PayPal is vigilant and will detect and deflect dishonest
behaviour rigorously.
They therefore choose payment processors that are less stringent and do not
put as much effort into protecting their members.

So, here it is 2014 and I still cannot find even one single HYIP that can
honestly accept Paypal as its payment option.

This is sad but true and that just proves that these programs will never be a
viable investment option.

I do not believe Paypal will ever accept and or do business with these types of
Here is my reasoning for why HYIP’s do not accept Paypal as a payment option
and why PayPal do not accept them either:
Paypal would want better oversight into the program and they will not get it
because; many of these programs do turn out to be scams and Ponzi schemes
with the owners eventually absconding with the investment funds.

I am still asking the question: Why HYIP’s do not accept PayPal?

However, …

I must retract some of my earlier statements and conclusions above.
To date one of these HYIP’s that has stood the test of time and is
still going online, have done so without using PayPal as a payment

It is called Ad Click Express and if longevity is any indication then it
certainly has proven not to be the scam many said it was.

10 Reasons HYIP Go Bust …

What are H.Y.I.P ?

They are high yield investment programs (H.Y.I.P)  and are supposed to generate
very high returns for investors.

The 10 reasons H.Y.I.P go bust are as follows:

  1. Unrealistic returns promised
  2. Lack of transparency
  3. Too much reliance on sponsoring
  4. Lack of training
  5. Little or no support
  6. Too little results
  7. Too many excuses for lack of performance
  8. No real products to promote
  9. Complicated compensation plan
  10. Greed from those at the top

1. Unrealistic promises of un-sustainably high returns on members investment is probably
one of the biggest reason that HYIP’s go bust.

Owners of these program often play to the gullibility and  lack of financial smarts of their
investors and offer them unrealistically high ROI.
The program then fails to live up to its hyped offer and investors leave causing the HYIP
to go bust.

2. Lack of transparency makes some investors nervous and begin to label the HYIP a scam.
This often creates a mass exodus from the program and it collapses.

3.Too much need for and reliance on sponsoring! While it is necessary to add new investors
to keep the program building and paying the investors, this should not be the sole source
of income generated. The program becomes what is called a Ponzi scheme and dies off.

4.Lack of or inadequate training for members of the HYIP. If you don’t understand the
program you will not be able to explain it to newer members that you have invited in
and the investor base will stall.

5.Too little results! There has to be a reasonable balance between effort and rewards, so
if the HYIP proves too difficult to promote and earnings are too low then investors will
walk away to find something easier and more rewarding.

6.Too many excuses for lack of performance in the program.
Sometimes HYIP owners come up with many excuses why the HYIP does not yield as
promised, however, investors do not want excuses, they want results.

7. No real products or services to offer! This is closely tied to No.3 on the list above.
Often this is the number one reason that HYIP go bust.
The need for more recruits so that existing  investors can be paid becomes
overwhelming and the program fails for lack of revenue.

8. Too complicated a compensation plan! Some of these programs have such
complex compensation plan that investors become frustrated and lose interest
in the program because they don’t understand it and cannot explain it to potential
new members.
I once heard a Network marketer say that if you can’t show someone your
compensation plan on a paper napkin then it is too complicated!

9. Lack of support!
Who you gonna call is a big issue with HYIP. There will be questions and
there had better be someone with the answers to help investors understand
the nuances of the program.

10. Greed and selfishness has killed off many HYIP.
As soon as some program owners see how much money is being generated by the program,
some of them begin changing the format and policies of the program to put more of the
revenues into their pockets and forget about the smaller investors who maybe working
just as hard to support the program.

HYIP are not inherently doomed to failure but just like any other business, they must
be governed by the integrity and responsible behavior of ALL those involved!