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PayPal Retracts New Seller Protection Provision


PayPal LogoeBay sellers can breathe a sigh of relief as PayPal announced it would not proceed with a move that would have left sellers without protection for certain transactions.

A spokesperson told EcommerceBytes on Monday:

“We are not proceeding with the amendment originally included in the Policy Update stating a payment must be made in connection with a transaction where the buyer logged into their PayPal account in order for a seller to be covered for Unauthorized Transactions under our Seller Protection program.”

Sellers had been greatly concerned about the provision in the updated User Agreement going into effect in April that was announced this month. The original notification about changes PayPal was making had included the following statement:

“We’re updating the additional requirements for coverage of Unauthorized Transactions for sellers under our Seller Protection program to require that the payment must have been made in connection with a transaction where the buyer logged into their PayPal account to complete the transaction in order for sellers to be covered under the program.”

We’ve asked PayPal if they could provide additional information about the decision not to proceed with that particular amendment, we’ll update this post if we hear back. (Update to the update: PayPal’s spokesperson explained, “We decided to remove it because customer confusion was identified.”

You can read more about why the move was controversial on this AuctionBytes blog post.

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Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). She is a member of the Online News Association (Sep 2005 - present) and Investigative Reporters and Editors (Mar 2006 - present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.