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Fri June 19 2020 23:02:53

PayPal Makes Major Changes Impacting Sellers

By: Ina Steiner

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PayPal is making major policy changes that will impact sellers when they go into effect at the end of next month. Among the good news for sellers: it is extending seller protections for intangible goods, which are currently excluded. Among the bad news: inventory purchases may not be protected, and an unfavorable change to SNAD claims.

Bad news: Buying Items for Resale Not Protected
If you buy items intending to resell them, you may no longer be protected. PayPal's notice states the following: "We are excluding items intended for resale, including single item transactions or transactions that include multiple items, from reimbursement eligibility under our Purchase Protection Program."

Note that the current policy states in part, "PayPal's Purchase Protection program entitles you to reimbursement for the full purchase price of the item plus the original shipping costs you paid, if any. PayPal determines, in its sole discretion, whether your claim qualifies for the Purchase Protection program."

Good news: Selling Intangible Goods Protected
PayPal's notice states: "We are expanding our Seller Protection Program to include certain intangible goods and providing the terms and conditions with respect to the coverage of such intangible goods."

What are "intangible goods"? According to PayPal's current policy, it includes non-physical items, including digital goods, and services; "Digital goods are delivered and used in an electronic format, like a song delivered online or through a mobile application."

Bad news: You May Not Get Your Item Back in Cases of SNAD Claims
PayPal's notice states: "For "Significantly Not as Described" claims under our Seller Protection Program, we are clarifying that the item may not be returned to sellers or sellers may be required to accept the returned item and pay for the return shipping costs."

Good news: Buyers Must Contact Sellers Before Filing a Claim
This is an interesting change that sellers are likely to welcome - PayPal states in this week's notice: "We are requiring that buyers attempt to resolve their issues directly with sellers prior to filing a claim with us in order to be eligible for reimbursement under our Purchase Protection Program."

Many sellers welcome the opportunity to try and make a buyer happy, especially in cases of simple misunderstandings.

Learn More
There are additional changes relating to pricing error notifications; payments processed through QR codes; seller protection for gold; and charities and the PayPal Giving Fund. Be sure to read the notice carefully for details that may impact you.

The new policy goes into effect on July 31, 2020, the notice is found on the PayPal website.

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Perminate Link for PayPal Makes Major Changes Impacting Sellers   PayPal Makes Major Changes Impacting Sellers

by: purpleiris This user has validated their user name.

Mon Jun 22 10:34:56 2020

While I no longer dropship or otherwise purchase inventory (have moved on to other things), my suppliers always took PayPal as payment. I would get paid via PayPal by the customer and those funds would go straight toward the item they bought and any shipping charges.

So, are they really going to shoot themselves in the foot by alienating suppliers? Not only are they not covering your customer's transaction, but they're not covering your transaction with the supplier. They stand to lose a lot of business doing that because legitimate suppliers will drop them like a hot potato.

All these rules reek of PayPal trying to protect itself solely from eBay -- all while killing their revenue stream from other legitimate businesses. What kind of business sense is that? NONsense, I'd say.

Perminate Link for PayPal Makes Major Changes Impacting Sellers   PayPal Makes Major Changes Impacting Sellers

by: purpleiris This user has validated their user name.

Mon Jun 22 10:38:05 2020

Of course, let's not forget about all the little people out there trying to eke out a living in the greed-driven world that makes it difficult enough. Talk about targeting the little guys!

Perminate Link for PayPal Makes Major Changes Impacting Sellers   PayPal Makes Major Changes Impacting Sellers

by: Bparty This user has validated their user name.

Mon Jun 22 10:41:12 2020

I have stripe on my website.  It does have options to set your own fraud concern fields.
As far as fighting a claim goes, it is pretty difficult on their site. I had one over 12 years and I lost it even though it was "delivered", stripe took my money. I was not happy about that and they did not offer a way to dispute it. That was maybe 6 years ago. But I have also lost a dispute I should have won on paypal but paypal's actions were so much worse in that case .
Example paypal required a form be filled out for a empty box situation to dispute my loss, then when the form along with instructions sent by paypal was returned to them, suddenly they now declined it due to no notary (neither instructions nor form indicated you needed it notarized) then when it was notarized, I then needed to pay the notary to make a special letter on their own letterhead! (again, email regarding the situation did not say notary had to formulate their own letter, only that the attestation form be notarized.) Needless to say, I did not bother with this any longer, a special letter in addition to 20 already shelled out on a 60.00 loss.  None of this was on the instructions or the form and paying another 20 for the notary to formulate a special letter was too much for me.  

Perminate Link for PayPal Makes Major Changes Impacting Sellers   PayPal Makes Major Changes Impacting Sellers

by: postbuster This user has validated their user name.

Tue Jun 23 09:30:37 2020

@Bparty

While not on the same level, this behavior is reminiscent of a Jim Crow Era in the form of Sellers vs. Corporate.

To me, this is their mindset.
Demonstrated by terrorism from executives

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