What You Need to Know about PayPal’s New User Agreement

New PayPal Regulations Will Be Implemented June 2016

PayPal’s new user agreement goes into effect this summer.  Before you simply ‘Agree’ to accept the new policy, you need to understand a few of the changes.  How will the new policies affect you as a consumer?

Buyer Protection

One of PayPal’s strengths is their ability to protect the consumer from potential fraud through their secure transaction portal.

Buyers are protected and eligible for reimbursement if they meet the following criteria:

  • The purchase is considered ‘eligible’
  • Payment was made between the PayPal account of the buyer and the PayPal account of the seller
  • You either did not receive your purchase, or it was received but was significantly not as described (SNAD)
  • You attempted to resolve the problem with the seller before filing a dispute with PayPal
  • PayPal has ruled in your favor

The new user agreement won’t negate that protection, but it will definitely change. Buyers should be aware that the new user agreement has updated their list of ‘eligible’ purchases. Most notably for buyers, they specify the exclusion of crowdfunding.

Should a PayPal user elect to back a new venture through crowdfunding, they will be unable to recover their funds if the campaign is unsuccessful.

Seller Protection

PayPal users receiving payments under the new agreement will also see changes to the protections they are afforded.

With the new guidelines regarding eligible purchases, merchants who offer gift cards and other non-tangible items are at a greater risk for fraud. These purchases are no longer covered and leave the seller exposed for potential chargeback fraud from unscrupulous buyers.

In addition, items must be shipped to the address shown on the transaction. Items delivered in person or shipped to a different address are ineligible for protection.

PayPal Has the Final Say

Accepting the Buyer Protection Agreement gives PayPal the final authority regarding disputes between a Buyer/Seller. This authority allows them to waive the terms and conditions that govern purchases and is a binding resolution that both parties must comply with.

Best Practices for Resolving Disputes

Before contacting PayPal for a resolution, consumers should attempt to resolve any issues directly with the merchant. If these attempts are unsuccessful, contact eConsumer Services® for assistance.

eConsumer Services® is a consumer mediation firm, and we’d be glad to assist you with any unsatisfactory purchases made online, through the mail, or over the phone.

If you’ve made a purchase with PayPal, regardless of whether it is covered by the Buyer’s Protection, let eConsumer Services® help. We secure quick and easy refunds with little effort on the consumer’s part.

Want to give it a try? Fill out the claims form to the right.