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.
A spokesman for PayPal said: "Due to our legal and data protection obligations, we cannot comment on any specific PayPal customer's account.
"We do not allow PayPal services to be used to promote hate, violence, or other forms of intolerance that are discriminatory.".
She said it was "alarmingly common" for white nationalist groups and personalities to raise funds via a range of legitimate online payment and advertising platforms.
These, she said, included the social media network Pinterest, the friendship and dating app Bumble, and the fundraising site Patreon. »