You could in fact (try) to get around Google's payment processor if you 
change your donate button into an in-app purchase of a media file that can 
also be processed by other apps (images, videos, songs, eBook...), see Google 
Play Developer Policies 
<https://play.google.com/about/developer-content-policy.html>:

Developers offering additional content, services or functionality within 
another category of app downloaded from Google Play must use Google Play's 
in-app billing service 
<http://developer.android.com/google/play/billing/index.html> as the method 
of payment, *except:* 
   
   - where payment is primarily for physical goods or services (e.g., 
   buying movie tickets, or buying a publication where the price also includes 
   a hard copy subscription); or 
   - *where payment is for digital content or goods that may be consumed 
   outside of the app itself (e.g., buying songs that can be played on other 
   music players). *


The only difficulty would be communicating the message to your users that 
the purchase is meant to be a donation for your work on the app. If you 
would phrase it like that you still would be violating the policies.


On Tuesday, November 18, 2014 11:35:13 AM UTC-6, NickL wrote:
>
> I bet you are exactly right.  Much as it sounds crazy, that is the only 
> thing that would explain this.  thanks!  
>
> I still think there must be a way to collect donations without giving 
> those scoundrels a cut of the loot. 
>
> On Tuesday, November 18, 2014 12:26:11 PM UTC-5, TreKing wrote:
>>
>>
>> On Tue, Nov 18, 2014 at 9:54 AM, NickL <nicklo...@gmail.com> wrote:
>>
>>> There is a donate link (redirects to PayPal) but there is nothing in any 
>>> way that gives the sense that new content would be made available by 
>>> clicking that link to donate, which is a Google requirement.  It just says 
>>> "touch here to donate".  
>>
>>
>> From 3.5 
>> <https://play.google.com/about/developer-distribution-agreement.html#pricing-payments>
>> :
>>
>> "The Payment Processor must process all fees a Developer receives for any 
>> version of a Product distributed via the Store"
>>
>> I can't speak with any authority, obviously, and I wouldn't consider a 
>> donation a "fee" (that's for the lawyers to decide), but given the reason 
>> you posted and your comment, I would expect this to be the problem. Pushing 
>> the update probably triggered a review (possibly random?) and Lord Googleâ„¢ 
>> was not pleased that you are getting dollar bills yo without making your 
>> contribution to them.
>>
>> You should probably switch that out with IAP.
>>
>> Good luck.
>>
>>
>> -------------------------------------------------------------------------------------------------
>> TreKing <http://sites.google.com/site/rezmobileapps/treking> - Chicago 
>> transit tracking app for Android-powered devices
>>  
>

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