Software vendors at significantly increased risk over upcoming policy changes!

[GreatMarko]

Hi All,

    So, I'm really concerned over the upcoming "Expanded PayPal Buyer Protection" changes (https://www.paypal.com/webapps/mpp/ua/upcoming-policies-full) and PayPal's marketing to me (a software vendor) that these changes will "benefit" me because "PayPal will now be seen by your customers as an even safer way to pay".

  That may be true - from a buyers perspective, but what about from a software vendor's point of view, like me, selling digital intangible goods through PayPal? These changes do NOT benefit me in any way! In fact, totally the opposite - they will expose my business to significantly increased financial risk!!
 
  Buyers of my software will soon have increased protection, whilst at the same time, my protections as a seller of digital software through PayPal remain the same (i.e. nonexistent!!)
 
  Now with these new changes to provide increased protection to buyers, does this mean PayPal will ALWAYS find in favour of the buyer irrespective, putting me, the seller, at a permanent disadvantage!!?
 
  Once these changes come into affect, what's to stop malicious buyers purchasing my software through PayPal, have the software delivered (electronically), then dispute the purchase knowing that under the new rules they'll automatically win and get their money back because they have "protection", yet I - as a seller of intangible goods - don't!!
 
  OK, so buyers could always do that anyway, but buyer and seller were on an equal footing (i.e. neither had "protection" in such instances) - now, buyers have greater protections, sellers of intangible goods don't!
 
  I've been a long time PayPal member in good standing, and am running a legitimate business.
 
  However, these policy changes concern me greatly - so much so that I'm now forced to consider having to move payment providers, as PayPal's new policies now seem unfairly biased towards the buyer and offer no protection whatsoever for software sellers like me!
 
  I'm curious to hear the thoughts of other sellers of "intangible" goods in relation to these upcoming policy changes, and also if anyone from PayPal is reading this - how PayPal will now continue to support small software vendors like me in light of these changes!?

[kernowlass]

From what i have seen and read, it does not give the buyer protection and none for the seller.

What they are saying is that they will judge the disputes on a transaction by transaction basis, which to be honest is not a lot different to what it is now.

HOWEVER in the past even if they thought the buyer should get a refund they did not qualify under buyer protection so could only get a refund if paypal could access funds from the sellers paypal account balance but now the buyer would be paid by paypal if they could not get the funds from the seller.............so the buyer is more protected yes. 

[GreatMarko]

kernowlass,

  Many thanks for your reply!

  The changes DO appear to give buyers more protection - to quote PayPal: "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."

  At the moment - neither the buyer or the seller have any sort of "protection" when it comes to intangibles - so it's essentially a level playing field, and up to PayPal to mediate and decide which party to side with. However these changes, according to PayPal will now give protection to buyers of intangibles, but there's no mention of any protection for sellers of intangibles? - so unless I'm missing something, PayPal will now automatically side with the buyer in every instance, and sellers of "intangibles" won't have a leg to stand on when it comes to disputes?!

[kernowlass]

This may be of help as it includes a post by a moderator on this subject.

https://www.paypal-community.com/t5/Disputes-and-claims/Regarding-UK-Policy-changes/m-p/817832#U8178...