Big Changes to PayPal Protections Incoming

[digital*ghost]

I guess this isn't going to be relevant for too much longer, at least within eBay, but my eybrows were raised significantly as I was reading through these points:

Amendments to the PayPal User Agreement (Effective 31 July 2020)

To review the updated PayPal User Agreement, please click here.

We are expanding our Seller Protection Policy to include digital goods, and further clarifying the terms and conditions with respect to the coverage of intangible items under our Seller Protection Policy.

We are clarifying that our Seller Protection Policy does not cover Unauthorised Transactions initiated in an environment not hosted by PayPal.

For “Significantly Not as Described” claims under our Seller Protection Policy, sellers may not receive the item back, or may be required to accept the item back and pay for the return shipping costs.

We are adding payments made in respect of gold (in physical form or in exchange-traded form) to the list of ineligible items and transactions under our Seller Protection Policy.

Items intended for resale, including single item transactions or transactions that include multiple items, are not eligible for reimbursement under our Buyer Protection Policy.

To be eligible for our Buyer Protection Policy, buyer must attempt to contact the seller to resolve their issue directly prior to filing a claim with PayPal.

We are also clarifying how in-person QR code transactions will be dealt with under our Buyer Protection Policy and Seller Protection Policy.

[digital*ghost]

Who knows. That's kinda the point. The issue is about PayPal determining someone's intention. 

What about the hobbyist collector who buys and sells items they collect, purchasing one that's intended for their own collection but they need to raise a claim and PayPal sees they frequently sell such items - will they be required to prove in some way that they never intended it for resale, and denied protection if because they can't.

I have.... questions. 

[digital*ghost]

For further thought, let's say PayPal decide this by the seller's intention instead - would that mean terms like "wholesale" on a product listing or website determines eligibility for buyer protection?

[countessalmirena]

I suspect that one way in which PayPal may determine that items are being purchased for reselling is in the case of repeat purchases of multiples of items. Perhaps the collector of identical widgets would have to prove he/she is indeed a collector and that these widgets are on display with little labels next to the glass.

[digital*ghost]

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@countessalmirena wrote:

I suspect that one way in which PayPal may determine that items are being purchased for reselling is in the case of repeat purchases of multiples of items. 

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I guess I better stop doing my grocery shopping online, then. Or at least, my cherry ripe purchases will have to become clandestine

[countessalmirena]

Spoiler

Pssst! The code word is cherry ripe!

There cherries grow that none may buy,

Till “Cherry-ripe” themselves do cry.

[glenbankloel]

Really, tell me how would they know what our intention is with an item purchased, how are they going to determine what you might want the item for, and why is it any of their business anyway? Refunds should be available to all.

Their ONLY role is to facilitate the flow of money from one transaction to another, not to stick their noses into what happens after.

Not the "Reselling Police"

What if you gave that item to someone else, and they sold it, do they intend to Police that too?

It is not up to them to determine how the item is going to be used/sold/given away/thrown out/split up. 

Over stepping their authority I think, in a big way. 

[digital*ghost]

I think it's a strange decision, why would they deny protection to the type of purchases that ensure sellers keep money in their PayPal account and use it to pay for stock, which ultimately encourages the constant back and forth flow of money within PayPal (which they profit from), rather than encourage people to withdraw it and use alternatives? They would know these types of payments can't be subject to chargebacks, so the risk of that kind of issue and cost is minimised and leaves PayPal as the only source of protection if something goes wrong, except now those payments won't be protected at all.

Dodgy as, IMO. 

[11dustyattic]

For sellers, we're damned if we do, damned if we don't, regardless of what their policies say. Both Ebay and paypal ignore their own policies anyway

[twyngwyn]

I use my Paypal account mainly for my prepaid envelopes & satchels....so if they were to go 'missing', I would be stuffed!

Might have to consider constantly emptying PayPal and using the attached account (so that I may be able to do a chargeback)

[dontmissthese]

We are clarifying that our Seller Protection Policy does not cover Unauthorised Transactions initiated in an environment not hosted by PayPal.

Huh!! So what is an environment not hosted by PayPal ?