Regretsy, a self-proclaimed fail blog of hand crafts from Etsy, tried to do something nice for the holidays.

It created a Secret Santa fund to collect money for children's presents from users. All users were nudged to give $2 to the cause.

Unfortunately, Regretsy used the wrong PayPal button to collect donations. In a post titled "Fuck You, PayPal," (filed under 'Bullshit" by Helen Killer), Regretsy writes about the fiasco.

"Their argument is that I generated this money using a “Donate” button, and not the “Buy Now” or “Shopping Cart” buttons I have been using for all the other fundraising I’ve done in the last two years," writes Regretsy.

"Because I used the wrong button, they have made me send them everything from bank statements to Articles of Incorporation to affidavits and notarized statements, even though I have been a verified business customer of theirs for 10 years."

Regretsy was asked to refund all donations it collected, literally thousands of dollars, $2 at a time. Meanwhile, PayPal gets to keep the fees from all the transitions.

"The best part is that when you raise the money all over again with a different button, they get fees on that. And of course, they process all the toy purchase payments, so this is a triple dip on money raised for needy kids at Christmas," writes Regretsy.

UPDATE: No news on whether or not PayPal will keep the fees from all of Regretsy's transactions, but it did give us the following statement:

"We can’t comment specifically on the Regretsy.com account due to our privacy policy. However, we can confirm that the funds have been released and we are working directly with the account holder on this matter. We are also working with Regretsy to make a donation to help families in need this holiday season. We’re very sorry this occurred.

"For reference, we have clear guidelines for any business who uses PayPal to accept donations. For example, we require certain documentation to prevent misuse of the donated funds and, if the recipient claims charitable status, to determine whether they are properly registered. As a regulated payment service, we’re also required by law to follow these guidelines.

"We appreciate that this can be an inconvenience, but we have a responsibility to all our customers – both donors and recipients; or buyers and sellers. In this instance, we recognized our error and moved as swiftly as possible to fix it."