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.
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