Paypals Buyer Protection now covers intangible items such as digital goods, downloads and services too. I'm assuming they mean things like SEO, article writing, MP3 files etc etc stuff that is sent and delivered electronically online and other online services. Buyers can now open an appeal if they have a claim to say they never received the files/services or if they wasnt as described. Before, Paypal never used to entertain buyer disputes for electronic virtual digital items and would always favor the seller. Now a buyer has to prove they never received the item or that it wasnt as described and then PayPal will "review it". You as a seller have to prove that the item WAS delivered by showing the download link page for example or download logs which might include their IP address I guess. (Do PayPal consider the IP address??) They say they want to give buyers extra confidence when buying digital/virtual/electronically delivered things like services/downloads etc and that it should also give sellers more confidence as well as so long as you can prove that you have sent the item and/or that it has been received/viewed/downloaded by the buyer then you will win depending on PayPals review team review. It's good for us buyers in a way who buy into something and feel they have gotten ripped off or that the product/service just isnt as advertised/described for getting money back if a refund request or money back guarantee isnt met by the seller. But theres no mention either in the email I got or there news post announcing it, nor in their security page and user agreement page of protection for "Unauthorized Claims" where by the person has paid on their CC and then clawed the money back through their CC company. No mention of that gaping hole in PayPals system. When it comes to PayPal vs a buyers CC company opening an unauthorized claim with PayPal they give in like a bunch of pussies everyone and anyone that has ever sold digital items be it themes, downloads, services online whatever and had a buyer get the item and then claw the payment back this way will know how frustrating and irritating it can be when you know they have already downloaded the products. My conclusion. Sure, PayPal will now "review" not provided/not as described claims for virtual/digital items. Which is really good both for buyers and sellers of such. But what they really need to do is more to stop fraudulent clawbacks people But they don't want to take on a big CC company in the courts as its far too messy and expensive. It's much easier for PayPal to give in to them and make the seller pay it back than it is for them to do that. They don't have any system in place to prevent that from happening because they are not an authority body. Some days I think if the Government purchased eBay and PayPal and privatized it it would be run 100 x better and there would be more done to help the seller in such a case and prove that the buyer is making a false "I dont recognize this payment on my card it must have been stolen and used by someone on the same ISP and location as me" claims. These people are the real criminals here not the seller. What do you think of this? Do you see any grey areas? Do you think it offers more protection for sellers or exposes them to more losses they can't defend?
this is major I really want to know how this will change the way delivery has to be proven? Anyone? I am thinking of integrating adobe esign in all my checkouts
how they will evaluate the digital items whether they are delivered as per buyers instructions..For example, if a buyer purchases an article and then feels the article is not up to the mark, then how he will get back his money?
Exactly! This is what I'm saying. There is a massive grey area. I don't know if PayPal realize it, but this is going to open up an even bigger can of worms for them. Put even more work on their table and slow down their service response times in dealing with all these new disputes over intangible items by reviewing them. And who is the one who reviews it and decides whether or not the article they purchased is up to scratch? What makes them say okay this is acceptable and this isn't? It's good in a way for buyers but where do you draw the line you know? It's going to be interesting to see how this pans out to say the least!
I would strongly advise AGAINST using Paypal for selling "intangible goods". I'm in the UK and recently listed one. The buyer completed, then promptly claimed their account had been used by someone else. I was able to prove the code I sent to their gmail account had been used. Paypal did NOT offer any protection and claimed that since goods were intangible they would not cover me. We are still waiting for a resolution but all indicators at present are that they are NOT providing us cover. They stated the reason they would not offer us any protection was because "The goods were intangible". Enough said. I'm waiting for a copy of their decision in writing so I can provide it to the regulator.
They will take more time and review the disputes manually. In UK worked without a problem for months maybe a year. You can prove that you have sent the article per email (screenshot).
That is entirely incorrect. We have provided the email and confirmation it has been redeemed. To clarify do NOT sell digital / intangible goods using Paypal as a payment method unless you are happy with ZERO cover. They ONLY cover buyers. Sellers get no cover at all!
I have made always good experience with paypal since 2006. of course there was some chargebacks but there is no better option as paypal.