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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.



Comments (24) | Permalink

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This user has validated their user name. by: RKTOYS

Fri Jun 19 23:37:12 2020

Ever notice how these things come full circle?  Way back when, eBay and PayPal made it possible for individuals, not just established corporations, to conduct commerce online.  Slowly but surely, they've both pulled up the ladder, aiming to restrict commerce to established corporations once again.  Just have to route around the (brain) damage somehow...

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by: comments This user has validated their user name.

Sat Jun 20 03:06:25 2020

Ina you missed some serious changes that should have been mentioned.

Payments in respect of gold are no longer covered. This coin be related to coins, jewelry, and bullion (paypal is the only method of payment allowed for purchases of coins and bullion on ebay).

Also unauthorized transactions are not covered in an environment not hosted by paypal. This could mean many things but ebay checkout is hosted by ebay but uses paypal as the processor. They could exclude all ebay transactions where the buyer didn't log in to paypal directly. Any chance you can help us get some clarification on this?

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by: lessthanthreerecords This user has validated their user name.

Sat Jun 20 11:50:25 2020

How exactly do they determine if you were planning to resell an item?  Doesn't that require them to literally read your mind?

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by: Carl This user has validated their user name.

Sat Jun 20 12:12:33 2020

Another one for UK sellers (this is already live in USA - although you may not know about it over there).

This is for violating the "Acceptable Use Policy"

If you use your PayPal account primarily for the purposes of your trade, business, craft or profession and you violate the Acceptable Use Policy, then:

You acknowledge and agree that USD 2,500.00 (or the prevailing equivalent in
the currency of the country in which you reside) per violation of the Acceptable
Use Policy is:
o A reasonable minimum estimate of PayPal's actual damages considering
all currently existing circumstances, including the relationship of the sum
to the range of harm to PayPal that reasonably could be anticipated.
o Reasonable and proportionate in its application to the provision of the
Services to you.
o Necessary, but no more than sufficient, to protect PayPal's legitimate
interest in your compliance with the Acceptable Use Policy.
• PayPal may deduct such damages directly from any existing balance in any
PayPal account you control.

I have read that this is serious and fines have already been made

https://www.paypalobjects.com/marketing/ua/pdf/GB/en/ua-09
1420.pdf

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by: Geetar This user has validated their user name.

Sat Jun 20 12:20:45 2020

@RKTOYS BINGO BINGO! " Way back when, eBay and PayPal made it possible for individuals, not just established corporations, to conduct commerce online.  Slowly but surely, they've both pulled up the ladder, aiming to restrict commerce to established corporations once again."

Funny how anything goes when you are just starting out and establishing yourself and you have to compete any way possible. Now that brick and mortar is all but gone, LONG LIVE THE LARGE ONLINE E COMMERCE CORPORATION! ONLY!!

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by: Geetar This user has validated their user name.

Sat Jun 20 12:27:04 2020

Well, now that online payments are quite a bit more secure now than it was years ago.....What the hell do you really need paypal for any more? Their fee's are on par, and even more expensive than a lot of processors out there. So why bother with them. Go with a processor that accepts paypal also,....if you get a better deal.
If they start stripping away what makes them good....????

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by: Whatever This user has validated their user name.

Sat Jun 20 14:02:54 2020

Geetar - who do you suggest? since I no longer sell on ebay i'm thinking I don't really care anymore but I do have that little website still going. And I use paypal but here's the really funny thing - I have NEVER had a chargeback - any disputes and no returns - now isn't that funny? If I'm selling something gold and it's expensive 1 - I close the box at the postal counter after the clerk oohs and aahs over it - 2 - I insure it for the full value and signature required. I also post that information in the website listing.  Seems to have worked so far. *postal fraud is serious.  Now on ebay - things just don't go so smoothly. Funny how I just don't get the scammers so paypal can change things - I'm good plus there's so many other payment options out there.

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

Sat Jun 20 14:12:04 2020

@lessthanthreerecords, I was wondering the same thing. Although, I guess that information would come out if a claim was filed.

I've never personally had a problem with PayPal or returns, but these sorts of controls are anti-small business. Now, if they intend to thoroughly and fairly handle each case, then I don't have a problem with it. Unfortunately, there's far too much room for fraud against a small business to occur.

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by: Geetar This user has validated their user name.

Sat Jun 20 19:13:49 2020

@Whatever There are tons out there. payline, Stripe, 2checkout. And also if you use a service like shopify you can use theirs.

@purpleiris ....ebay had a start to get to where they are now (automatic returns, Free returns....) , this is most likely the start for paypal.

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by: Rooster Corburn This user has validated their user name.

Sat Jun 20 22:12:13 2020

Ineligible items and transactions

Your sale is not eligible for coverage under PayPal's Seller Protection program if:

It involves Gold Bullion.

And then on a seperate page PayPal also makes this statement with regards to gold.

"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."

So will PayPal no longer offer eBay gold coin and bullion sellers any form of seller protection starting July 31, 2020?

If so that's going to hurt those eBay categories severely.  

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This user has validated their user name. by: iheartjacksparrow

Sun Jun 21 10:05:42 2020

@Whatever - Try Stripe. I've used them in my eCrater store since they became available on the site and have not had any problems with them. They charge the same fees as PayPal (2.9% plus 30 cents).  

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by: FeelingFroggy This user has validated their user name.

Sun Jun 21 17:16:27 2020

In twenty years of using Paypal as a seller we have had maybe 2 returns with them. I have never bought anything with paypal. Once a month the account is swept into our checking account. We have always used a Capital One credit card. How many credit cards does one need. Come the end of July we will be closing our Paypal account PERMANENTLY.

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This user has validated their user name. by: thehosst

Mon Jun 22 03:54:20 2020

Is Amazopoly now secretly buying Paypal, no, wait.... is not Amazon, is just Bezos, then is ok, as long as it is not amazon right?
So now anyone who buys from suppliers is not cover? What is this new Preypal "policy"? Wait till all those scammers learn that you are not cover. So we are now supposed to work for Amazopoly minimum wage, part time, with no benefits?  

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by: hawk This user has validated their user name.

Mon Jun 22 06:20:47 2020

it never fails that it's always against the sellers and other people that made these businesses rich and huge and unstoppable. the corrupt s**t continues as always.

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by: RCL This user has validated their user name.

Mon Jun 22 07:41:39 2020

I have been a loyal Pay Pal user for 20 years. If they will no longer protect my online purchases--what I resell is none of their business except that they know when I do not pay sales tax--I will now go with my credit card providers, and drop the Pay Pal option from my 2800 listings. I think most sites make this kind of transition pretty easy now at the point of sale. It's a shame.

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

Mon Jun 22 09:08:21 2020

I've had a business account with PayPal since shortly after they became PayPal and haven't had a single issue with them or a claim filed. So, it really wouldn't make sense for me to bail on them now.

I'll just continue to do my due diligence in protecting my own business by protecting the products I'm shipping for customers. Having firm, but fair policies also helps. It seems to have worked for me thus far.

However, I do have other options, if necessary. We're about to switch to a credit union and one of my first questions will be what kind of credit card processing services they provide for business members, if any.

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This user has validated their user name. by: epuise

Mon Jun 22 09:10:46 2020

Sure makes Cash Pick Up look appealing... no ?

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by: purpleiris This user has validated their user name.

Mon Jun 22 09:17:29 2020

@epuise...Hahaha! So glad I wasn't sipping my coffee the moment I read that.

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

Mon Jun 22 09:19:18 2020

On a different topic I have been trying to get support from PayPal for over a week. I have been getting an uptick in orders using a shipping address different from the billing address. Research in each case proves them to be fraudulent.
I have been a PayPal user for close to two decades. I am certain at one time my account would not accept cc with different addresses.
I have called numerous times finally waited on hold for over 45 minutes only to talk to someone that new or understood little. I have been exchanging support messages with them for days. To date I can't even get them to understand the problem. Each time i am sent a solution to problem I did not even mention.
I know there is a way to set the cc rules to not accept orders that do not have matching billing and shipping addresses. At one time it was easy to find on the PayPal site, no longer.
I have about had it with this nonsense, PayPal seems to become more like eBay every day.
I am considering Stripe. Is that a good choice? How much of a hassle would it be to switch over?
What would be the downside to the switch over?
eBay is not a concern since I dropped their sorry ......s on January 1, 2020 after 15 years..

Thanks

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by: vintagejewelryrepair This user has validated their user name.

Mon Jun 22 10:19:10 2020

I don't understand "not covering items bought for resale".  If I buy a lot of jewelry and I keep some and want to resell some, then what?  If I buy several pieces and some don't fit and want to resell because I can't return, then what?  Why are my selling intentions important to a big outfit like Paypal?  If I am reasoning it out, then if I buy everything with the intention of keeping it, then I should still be covered, right?  And then, if the next day I decide to sell it, no problem, right because my original intent was to keep it?  Because it's the original intention that matters? How do they prove otherwise? I think in a court of law they call that would be objected because it calls for speculation...

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