The anti-poverty charity War on Want has said PayPal's decision to stop providing services to it is based on "unsubstantiated smears".
Yesterday, Third Sector reported that the online payment processing company had withdrawn its services from the poverty charity after receiving complaints from the pro-Israel group UK Lawyers for Israel.
They claimed the charity misused funds to produce antisemitic propaganda and had links to armed Palestinian groups.
They also complained to PayPal, which responded by saying it would no longer provide services to War on Want.
In a statement, War on Want said: "It is regrettable that PayPal has taken this decision on the basis of unsubstantiated smears and without a proper process for War on Want to refute the allegations being made.
"War on Want is taking all necessary steps to ensure that its human rights work is not disrupted by this malicious campaign.
"Palestinian human rights organisations are a regular target of vexatious and politically motivated complaints to disrupt their work. UK-based civil society organisations are also increasingly becoming the focus of such attacks."