Paypal UA updates, just hit my inbox

[southern*sweet*tea]

https://www.paypal.com/us/webapps/mpp/ua/upcoming-policies-full

Some of the more interesting highlights:

• We’re no longer going to offer the Pay After Delivery product so we are removing terms related to that product from the user agreement. 
• We’re clarifying that when purchasing or sending money, we may require a backup payment method for your transaction(s) to be used if the selected payment method is declined, expired or otherwise unavailable.
• 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’re adding terms that apply to marketplace sellers.  If you sell on a marketplace and accept payment through your PayPal account, a hold may be placed on a payment sent to you at the instruction of the marketplace.
• For business accounts, we are changing the fee charged for our faster withdrawal option to an eligible debit card linked to your PayPal account to 1% of the transferred amount.
• We’re changing the balance functionality for your PayPal account depending on whether we have been able to verify identifying information that you provide to us. 
  • If we have not verified your identifying information, a balance in your PayPal account can generally only be held in your PayPal account and transferred to a linked bank account or debit card.
  • If we have verified your identifying information, a balance in your PayPal account can be held in your PayPal account, transferred to a linked bank account or debit card, used to make purchases or send money to others.

[lookng2015]

So basically if they pay on eBay using a cc, or later when the Adyen system goes into effect, those transactions won't be covered under PP seller protection?

[southern*sweet*tea]

---

@lookng2015wrote:
So basically if they pay on eBay using a cc, or later when the Adyen system goes into effect, those transactions won't be covered under PP seller protection?

---

The way I read it is if a direct CC payment is made during checkout there will be no seller protection. A payment made through Paypal with a CC would still be covered.

Under Adyen it would not apply since Paypal won't be processing the payment anyway.

Just my interpretation.

[moo*cow*corner]

I'm reading it the same way.

A good example would be an ebay guest buyer who pays at checkout with their CC, without a PP account being involved.

The payment is processed by Paypal, but PP has no way to recoup any losses if the payment goes bad and the seller falls under Seller Protection (ship to PP address, tracking and siggy over $750, etc.).

They are now passing that risk onto the sellers by taking away seller protections for those transactions. Wonder if this applies to INR's...very interesting.

[aislynkat]

This is ripe for a lawsuit. PP is going to lose. Watch the lawyers pounce.

[moo*cow*corner]

A good example would be an ebay guest buyer who pays at checkout with their CC, without a PP account being involved, and then initiates a chargeback for Unauthorized Transaction.

There. Fixed. I think....it's late....lol!

[ted_200]

We’re no longer going to offer the Pay After Delivery product so we are removing terms related to that product from the user agreement.

I kept telling them that was a really bad idea, I'm surprised it took them this long to figure it out... 

We’re clarifying that when purchasing or sending money, we may require a backup payment method for your transaction(s) to be used if the selected payment method is declined, expired or otherwise unavailable.

"Otherwise unavailable".  Uh oh.  Look for them to refuse to offer credit card funding in an attempt to force you to the bank account option, which ups their margin on the deal considerably.   That will also likely happen after the 1st or 2nd chargeback from when the eBay seller with 30 day returns only gave you half the money on a SNAD item.

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.

I have no idea what they're talking about, but it ain't good.

If I'm reading that correctly, they're saying if the eBay buyer had their account linked for "fast checkout" (which requires no login to PayPal to proceed), they're going to stiff the eBay seller for Unauthorized Use chargebacks?  

eBay needs to disconnect the no login fast checkout links with PayPal, if this is the case.

If you sell on a marketplace and accept payment through your PayPal account, a hold may be placed on a payment sent to you at the instruction of the marketplace.

That won't apply to the new Adyen deal here, we'll be accepting payment through our eBay shop payment account.  Of course, eBay will undoubtedly be able place holds on that account directly.

Before then, that's what's been happening here already.  This opens up possibilities for PayPal to make similar arrangements with other marketplaces too.

We’re changing the balance functionality for your PayPal account depending on whether we have been able to verify identifying information that you provide to us. 

Wow.  That's sorta a bad financial decision for them, having buyers not able to fund with PP balance is going to drive a lot more purchases onto credit cards for them.  Sounds like they must have had some sort of real problem with fraudulent accounts spending balances that didn't exist, or have some sort of illegal money transfer/money laundering issue they're trying to solve. 

[the_fancy_fox]

So if the paypal address is the same as eBay's but it says "not eligible" then what? Cancel the sale using bad address?  I could care less that eBay says they will cover it, the chargeback will more than likely come from PayPal.

[the_fancy_fox]

The PayPal forum says there's a chat tomorrow between 1-2. Hopefully it will be clarified. 

[aislynkat]

On the other hand, PP just let me know that I won against some nit wit’s irresponsible claim on a chargeback from a sale back in early December. 

But on topic, the states attorneys generals will not like PP having different UA’s for different businesses. Law suits a coming.

[missjen831]

---

@ted_200wrote:

We’re no longer going to offer the Pay After Delivery product so we are removing terms related to that product from the user agreement.

I kept telling them that was a really bad idea, I'm surprised it took them this long to figure it out... 

We’re clarifying that when purchasing or sending money, we may require a backup payment method for your transaction(s) to be used if the selected payment method is declined, expired or otherwise unavailable.

"Otherwise unavailable".  Uh oh.  Look for them to refuse to offer credit card funding in an attempt to force you to the bank account option, which ups their margin on the deal considerably.   That will also likely happen after the 1st or 2nd chargeback from when the eBay seller with 30 day returns only gave you half the money on a SNAD item.

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.

I have no idea what they're talking about, but it ain't good.

If I'm reading that correctly, they're saying if the eBay buyer had their account linked for "fast checkout" (which requires no login to PayPal to proceed), they're going to stiff the eBay seller for Unauthorized Use chargebacks?  

eBay needs to disconnect the no login fast checkout links with PayPal, if this is the case.

---

No they are talking about PayPal guest payments. Fast tracked payments are still paid through the buyers PayPal account, the account just stays logged in all the time. What PayPal is no longer covering under seller protection is guest payments—when the buyer checks out they can choose PayPal or credit card.....credit card is a guest payment, the buyer just enters their card info and does not log in to their PayPal account. Those payments will not be covered by PP anymore. And the kicker is.....there is no way for a seller to know if the buyer used their PayPal account or not right?

[moo*cow*corner]

This Unauthorized Transaction business looks like another change where the sellers are going to end up taking the hit for something they can't control. Or even verify, for that matter...

Just more 'cost of doing business'. No big deal. After all, it's deductible right? Bah!

[missjen831]

This goes into affect before Adyen. This is scary. The part about no seller protection on payments not made through the buyers PayPal account. I don’t even understand why that’s changing. They already stopped covering those payments under buyer protection. 

[banana*shoe*boutique]

• For business accounts, we are changing the fee charged for our faster withdrawal option to an eligible debit card linked to your PayPal account to 1% of the transferred amount."

Here's an argument to not "upgrade" to business.  Everyone pays a quarter but businesses pay 1%?

[missjen831]

---

@banana*shoe*boutiquewrote:

• For business accounts, we are changing the fee charged for our faster withdrawal option to an eligible debit card linked to your PayPal account to 1% of the transferred amount."

Here's an argument to not "upgrade" to business.  Everyone pays a quarter but businesses pay 1%?

---

Can you downgrade your account? I upgraded mine while messing around with the settings. I didn’t intend to go through with it but there was no way out so I had to complete the process before I could use my account. And wouldn’t you know it, without telling me first my husband upgraded his just so he could get a card reader to take electronic payments for our daughters Girl Scout cookie sales!