PayPal suspended an account used to raise funds by one of the US’s largest white supremacist groups six days after it was first flagged by an anti-bigotry campaigner.
The Loyal White Knights of the Ku Klux Klan had promoted the account via a donation page on its website.
PayPal acted on Friday after others picked up on the issue and urged it to block the recipient.
The US-based firm faces criticism for not resolving the issue more rapidly.
PayPal previously pledged to “evaluate all sites” brought to its attention that involved the use of its service to fund the KKK and other organisations advocating racist views.
“I have tonnes of concerns that PayPal is not able to act quickly and decisively on hate groups ... Read even more
