US embargo forces German Paypal users to forgo Cuban goods

Jul 28, 2011, 15:08 GMT

Berlin - German companies are being blocked from using the US online payment system Paypal if they trade in Cuban goods, due to a US embargo on trade with Cuba, a German newspaper reported Thursday.

Die Welt reported that German Paypal users who sell products like Cuban rum or cigars have in recent months found their accounts blocked.

Paypal spokesman Christoph Hausel confirmed the policy, noting that the US company had to abide by the US embargo, which rules out all trade with Cuba. The policy is linked to the product's country of origin, regardless of where the trader is based.

The paper reported that the policy had affected online payments to companies like German spirts trader Rumundco. A company spokesman said a compromise had been mooted, but Paypal rejected it and blocked the account. 

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