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Wed Sept 17 2014 12:10:42

Sellers on the Hook for 6 Months with New PayPal Policy

By: Ina Steiner

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In many ways, selling online is getting harder and harder, and PayPal's latest policy change is the latest burden merchants must face. PayPal is extending the Dispute Filing Window from 45 days to 180 days. That means buyers can dispute a transaction 6 months after making a purchase.

PayPal had already extended the dispute window in the UK in June - at the time, sellers cynically referred to the policy as a "6-month rental plan" for buyers.  

The policy change applies to transactions on any site or marketplace where the buyer uses PayPal to pay for the purchase. The policy applies to claims for Item Not Received and Significantly Not as Described.

When PayPal UK announced the new policy would go into effect there in the spring, UK spokesperson Rob Skinner told us it would include transactions on eBay UK, provided the buyer opted for PayPal buyer protection rather than eBay UK's money back guarantee. (That's right, for those of you who might not have realized it: eBay buyers have that option when disputing a transaction.)

U.S. sellers began reacting to the news on the eBay discussion boards. "6 months for "protection"? Is this e-z rentals or is this eBay," one seller asked.

Interestingly, the change could motivate some off-eBay sellers to drop PayPal on some channels. "They will be fired on all other venues where I sell well ahead of Nov. 18 if this is true," wrote one eBay seller. Another wrote, "Besides accepting checks or money orders from any sales on other sites is there anything comparable to PayPal - I can sign up for and accept?"

There are other changes to the PayPal User Agreement coming in November, we'll cover them in Thursday's Newsflash. In the meantime, let us know what you think.



Comments (128) | Permalink

Readers Comments

Perminate Link for Sellers on the Hook for 6 Months with New PayPal Policy   Sellers on the Hook for 6 Months with New PayPal Policy

by: ignatz This user has validated their user name.

Wed Sep 17 12:55:34 2014

Luckily, most of my inventory can be sold on Etsy, since it qualifies as vintage.  On Etsy I can accept their "Direct Checkout" and NOT accept PayPal.  I was in the process of setting up my store there anyway, as a result of ebay's "defect" system.  But I'll be accelerating that effort now. This is the final straw, as I'll be damned if I'll start offering an unconditional 6-month warranty on vintage items!

Perminate Link for Sellers on the Hook for 6 Months with New PayPal Policy   Sellers on the Hook for 6 Months with New PayPal Policy

by: tango This user has validated their user name.

Wed Sep 17 12:59:20 2014

Just unbelievable!  At this rate it will be more profitable to be a buyer then a seller!  Up to this second, I was a fan of Paypal, not, no more.  If this really happens, guess who gets the walking papers on our Website!  They are shooting themselves in the foot.  go for it!  

Perminate Link for Sellers on the Hook for 6 Months with New PayPal Policy   Sellers on the Hook for 6 Months with New PayPal Policy

by: ignatz This user has validated their user name.

Wed Sep 17 13:03:17 2014

Oh, it's happening!  

Coming to a theater near you on November 18th:

https://www.paypal.com/us/webapps/mpp/ua/upcoming-policie
s-full

Perminate Link for Sellers on the Hook for 6 Months with New PayPal Policy   Sellers on the Hook for 6 Months with New PayPal Policy

by: NetWatch This user has validated their user name.
Web Site

Wed Sep 17 13:36:59 2014

This will spell the doom for the remaining small sellers on eBay. Fortunately, on other online selling sites a seller can accept other methods of payment besides PayPal.

Perminate Link for Sellers on the Hook for 6 Months with New PayPal Policy   Sellers on the Hook for 6 Months with New PayPal Policy

by: Russ This user has validated their user name.

Wed Sep 17 13:48:47 2014

Moronic...and not unusual for the eBay "Family" of "Units."

Off-topic but just saw this at Business Insider ia Yahoo Finance by James Cook...
Hackers Target eBay Users With Fake iPhone Listings."  

Thank goodness for no site performance issues since Sunday.....

Perminate Link for Sellers on the Hook for 6 Months with New PayPal Policy   Sellers on the Hook for 6 Months with New PayPal Policy

This user has validated their user name. by: iheartjacksparrow

Wed Sep 17 13:52:52 2014

This is insane. The date this goes into effect is the date I stop accepting PayPal. Because in six months, after a buyer has worn/used/played with your item, of course the widget is no longer as described in the original listing; it's torn or scratched or just plain abused.  

Perminate Link for Sellers on the Hook for 6 Months with New PayPal Policy   Sellers on the Hook for 6 Months with New PayPal Policy

This user has validated their user name. by: Basset

Wed Sep 17 13:54:18 2014

So.... I can buy a hammer at Home Depot and pay for it with PayPal. Use it for 5-3/4 months. Then file a claim with PayPal because hammer does not drive a nail in straight?

PayPal spreading the joy that is now exclusive to eBay?

Perminate Link for Sellers on the Hook for 6 Months with New PayPal Policy   Sellers on the Hook for 6 Months with New PayPal Policy

by: brokentoys19 This user has validated their user name.

Wed Sep 17 14:00:07 2014

Maybe it's to accommodate paypal space travelers who are often gone for months or years? There's nowhere else on earth with a 6 month return policy. Waiting for Donahoe to appear on big front page banners 6 months return shipping paid MBG LOL

Meanwhile both ebay and paypal are getting trounced today.

An eBay redirect attack puts buyers' credentials at risk

http://bbc.in/1pjsFZY



PayPal talks up its terrible payment service: 'At least we're not iCloud'

http://theverge.com/e/5985086  


Perminate Link for Sellers on the Hook for 6 Months with New PayPal Policy   Sellers on the Hook for 6 Months with New PayPal Policy

by: Agent99 This user has validated their user name.

Wed Sep 17 14:36:37 2014

This is much bigger than sellers on ebay. Businesses take paypal online and locally.
Paypal has made a huge mistake.
I for one will be shutting them out of my selling venues.  

Perminate Link for Sellers on the Hook for 6 Months with New PayPal Policy   Sellers on the Hook for 6 Months with New PayPal Policy

This user has validated their user name. by: Rexford

Wed Sep 17 14:37:20 2014

You can tell JD has spend spending time at PayPal.

And much like he has done at eBay, he will drive users of PayPal away.

Perminate Link for Sellers on the Hook for 6 Months with New PayPal Policy   Sellers on the Hook for 6 Months with New PayPal Policy

by: southwest13 This user has validated their user name.

Wed Sep 17 14:40:10 2014

Closing my Paypal acct.  Closing my eBay acct. as well. They're not the only game in town. This plus other draconian policy "updates" not to mention the hacking incidents...I'm done.  

Perminate Link for Sellers on the Hook for 6 Months with New PayPal Policy   Sellers on the Hook for 6 Months with New PayPal Policy

This user has validated their user name. by: iheartjacksparrow

Wed Sep 17 14:41:59 2014

Yeah, JD must have used one of his "thinking days" to come up with this policy.

Perminate Link for Sellers on the Hook for 6 Months with New PayPal Policy   Sellers on the Hook for 6 Months with New PayPal Policy

by: ignatz This user has validated their user name.

Wed Sep 17 14:53:36 2014

Another possibility is that the imminence of this policy contributed to Marcus leaving PayPal.  Although I know nothing about him and whether his head is screwed on straight.

Perminate Link for Sellers on the Hook for 6 Months with New PayPal Policy   Sellers on the Hook for 6 Months with New PayPal Policy

This user has validated their user name. by: Anonymous Annie

Wed Sep 17 15:01:22 2014

It's abusive.

Unfortunately, the sellers who must use PP (because they don't have the sales volume to make other merchant processors economical, or because they may not pass any credit-checks) are the ones who are MOST VULNERABLE and who can LEAST AFFORD to withstand the risks associated with this type of policy.

When I started looking for an alternative to PP for my ecommerce site, I assumed that I'd ALSO be one of the ones who wouldn't qualify because of a small sales volume, or because of a less-than-perfect credit report.

I was DELIGHTED with the credit card processing offered by Costco! (Yes, Costco!) Costco has partnered with ''Converge'' (previously named ''Virtual Merchant'')... and it's everything I need in a merchant credit card processing service.

As a Costco Executive Member, I save $5 per month on the monthly service charge. (With my discount, that's $8 per month.)

The minimum sales requirement is that I must generate at least $20 in transaction fees each month. (Otherwise, they will still bill me for a minimum of $20 + $9.)

I was surprised that the minimum was so low... I was expecting that I'd need to generate hundreds in transaction fees in order to qualify.

Aside from being free of PP... and aside from the fact that my rates are BETTER than what I paid to PP (even with the monthly fee calculated in) I was particularly happy to see my website's business improve when I finally DUMPED PAYPAL!

Previously, PayPal was my ONLY processor... and, frankly, it made my website look ''small time'' and amateurish. I looked like a basic-beginner (and... well... truthfully, I was a beginner) but that's NOT the message I want to convey to potential customers!!

Perhaps once or twice a year, I'll still get an email asking if I accept PayPal... or wondering why I no longer accept PayPal. --- And only ONE of those inquiries has resulted in the customer NOT completing the purchase. JUST ONE!

I think it's safe to say that the loss of that ONE customer is more than offset by the overall increase in my business and the thousands of other customers who feel confident enough to purchase with their credit card.

Appearances count!

Having PP as one's ONLY payment form is like going to a job interview wearing cut-off jeans, t-shirt and flip-flops. (Not very impressive... and it sends the WRONG message to potential customers.)

I TRULY HOPE that more sellers will explore other options (such as the Converge services in association with Costco) ... see what's out there! Don't just ASSUME that PP is your only choice.

''PayPal. The world's most-loved way to pay and get paid.'' --- DON'T BELIEVE IT!

Perminate Link for Sellers on the Hook for 6 Months with New PayPal Policy   Sellers on the Hook for 6 Months with New PayPal Policy

This user has validated their user name. by: Anonymous Annie

Wed Sep 17 15:02:57 2014

EDIT/CORRECTION: That should be "$20 + $8" .. not $9.  

Perminate Link for Sellers on the Hook for 6 Months with New PayPal Policy   Sellers on the Hook for 6 Months with New PayPal Policy

by: blaumann This user has validated their user name.

Wed Sep 17 15:18:12 2014

Hard to believe this. Just criminally
insane

Perminate Link for Sellers on the Hook for 6 Months with New PayPal Policy   Sellers on the Hook for 6 Months with New PayPal Policy

This user has validated their user name. by: Philip Cohen
Web Site

Wed Sep 17 15:18:33 2014

"180 days"! Clearly, desperation is setting in. I can smell the pungent aroma of the decomposing carcase from all the way over here in Australia ...

Goodbye clunky “PreyPal” (and eBay), it has not been nice knowing either of you of late … http://bit.ly/1nSA1Zl

The eBay executive suite—where the incompetent mingle with the disingenuous, the malevolent and the outright criminal, and the just plain stupid ... http://bit.ly/11F2eas

Perminate Link for Sellers on the Hook for 6 Months with New PayPal Policy   Sellers on the Hook for 6 Months with New PayPal Policy

This user has validated their user name. by: Philip Cohen
Web Site

Wed Sep 17 15:33:19 2014

Annie’s remarks are spot on: offering only “PreyPal” screams “amateur” …

Regardless, any professional online merchant, that already has a credit card merchant account with his real banker, now has the option of using either MasterCard’s “MasterPass” or Visa’s “Visa Checkout” for online payments—simple, secure, professional, and your receipts are in your bank account the following day!

Goodbye clunky “PreyPal”, it has not been nice knowing you … http://bit.ly/1nSA1Zl

The eBay executive suite—where the incompetent mingle with the disingenuous, the malevolent and the outright criminal, and the just plain stupid ... http://bit.ly/11F2eas

Perminate Link for Sellers on the Hook for 6 Months with New PayPal Policy   Sellers on the Hook for 6 Months with New PayPal Policy

by: sailormoon This user has validated their user name.

Wed Sep 17 16:01:43 2014

You guys wouldn't believe how many people I know or hear from who have gotten scammed on Paypal because they ignored the 45 day dispute time. How is that even possible?! How can you take over 45 days to decide "hm, I don't think they are going to send my product." It really just slipped your mind for 45 days? You seriously think it takes 45 days for a package to get from California to Ohio? What do you think they're doing, walking it to you? Asinine.

It infuriates me every time I read it because I know that's why Paypal is doing this now. Because of these idiots who ignore every banner, every email, every ad that advertises Paypal's already very generous dispute timeline, and then have the gall to complain about it later.

Catering to the lowest common denominator. Why should people have  to learn a lesson about online scammers? Why shouldn't they learn not to be lazy %^&* and READ and PAY ATTENTION? Why should people have to learn anything at all? Paypal is here to wipe the butts of everyone who can't figure out how to do it themselves, and we (sellers) are the toilet paper.

Perminate Link for Sellers on the Hook for 6 Months with New PayPal Policy   Sellers on the Hook for 6 Months with New PayPal Policy

by: Santini This user has validated their user name.

Wed Sep 17 16:06:23 2014

Hey, can I buy a car with paypal? This could have some possibilities!

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