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Paypal changing buyer protection [180 days disupute]
From 17th June, PayPal Buyer Protection will be expanded to cover intangibles (services, digital goods, travel, event tickets and other intangible items). We're also extending the dispute claim window from 45 days to 180 days after purchase date.
Will this affect your business? do you receive lots of charge backs? I personally think 180 days is a bit extreme.
https://www.paypal.com/uk/webapps/mpp/business-updates/protection-improvements
Comments
Summer hosts are gonna get raped.
for me disputes are not an issue but I can imagine how this opens the window for abuse.
Note:
However:
Seller's protection still doesn't include intangible goods. If someone disputes an item by suspicious means [unauthorized, chargeback, etc]; your only response option is to provide tracking information
Sooo.. good job PayPal.
lol "We expect your business will be able to benefit from this change too because of the extra confidence buyers will have when shopping for intangible items."
What they actually mean is "the extra abuse you will get"
It's only for UK individuals though. So no big drama.
Yes I believe paypal should really offer sellers more protection, however as some have previously mentioned, calling paypal is usually effective in squashing an invalid dispute.
God damn it, I should move to the UK. So many free vps services thanks to PayPal.
It may not be that great for hosts but stuff like this is why people feel safe putting their credit/debit/bank information online with PayPal. PayPal pretty much props up the bulk of all businesses here and it's these policies which have enabled them to become so ubiquitous with online payments.
See:
If you say the charge was "Unauthorized", or you choose the "Not Delivered" option; or if you simply phone your bank / credit card company and initiate either a "Chargeback" or a "Do Not Honour" ; in all these cases, the host [ provider / seller ] will lose the money, with no way to combat it.
I hope this never comes to Canada/USA. If it does, paypal will become a scammers playground. There's a hell of a lot more buyers who scam, then sellers who scam.
I think these are different than a paypal dispute, chargebacks and unauthorised claims can be done outside of the dispute window and extends to the "for family or friends" payments.
I also provide virtual goods and if I had to show PayPal proof of delivery of these, they would most likely still send the money back to the buyer, as PayPal employees wouldn't even understand what I sell.
I had some cc-chargebacks and all of them were decided against me, despite showing as much proof of delivery as I could, so I now for the first time wrote a lawsuit against one of these buyers and will do so every time in the future.
@tr1cky but like you said, you can turn to the law if you are out large sums of money. Fraud is still illegal in the United Kingdom. It's not going to turn to some scammers paradise overnight - you may see a few more on average but it's not going to turn the United Kingdom into a situation like China or India where you have to seriously consider even doing business in those countries due to the clientele.
While PayPal is easy to use and a good payment processor, it also sucks for sellers.
OMFG this is horrible news, so buyers are not protected for 180 days against intangible goods, sellers however are not.
Bad time to be based in the UK.
You mean buyers are, and sellers are not? Yes.
This is indeed horrible news, I hope no one uses it against LES, that would be.. disgraceful to say the least?
In my opinion it should be 30 days dispute time. If someone didn't receive service, surely it wouldn't take more than 30 days to notice?
I wonder who will stop accepting PP.
Perhaps Paypal should have different rules for intangible services rather than mail delivered goods, this way the timespan for items such as VPS could be reduced to as little as a one week/month without affecting items which require physical delivery
For hosting probably yes, for other services not necessarily.
Or who will stop accepting UK customers
Paypal didn't invent this, it was a result of some new law / rule in UK. I guess other payment processing providers will amend their rules too.
Imma gonna chargeback all that interweb porns so bad.
'Reason for refund: not enough anal, she wasn't really his stepmom unless she's got like 20 step kids'.
I wonder who will stop accepting PayPal from UK clients
BlueVM?
Oh well, looks like we're phasing PayPal out. It's alright anyways, all of our legitimate clients use our Credit Card options [ Stripe , PoS Transfer ] or our bank options [ ACH/BCN/Swift/iBan transfer ] anyways; or they go and use BitCoin [ eugh, being a merchant accepting BitCoin in Canada is terrible. BitPay for example, requires $1,000 minimum withdrawal. ].
Use Coinbase, it's a lot more decent
YAY, lets chargeback
As a buyer, I'd prefer one website having my credit card information, rather then giving my credit card information to hundreds of websites.
As a seller, I'd prefer credit card or bank payment.
It is pretty dum. 180 Days is to much. Like 45 days is long enough :I 180 Half a year like what the heck. Good luck to the dedicated server providers :I
That URL no longer loads:
https://www.paypal.com/uk/webapps/mpp/business-updates/protection-improvements
Is this posted somewhere else or did they just make a retraction?