Has PayPal just removed their reason to exist?

[elmura]

I'm sure I speak for many users of PayPal for purchases when I say that the main benefit of using Paypal was to have the Buyer Protection peace of mind. Knowing that you had 180 days of protection was a unique benefit of using PayPal.

However, as of 1st July 2024, Paypal lawyers, with their lack of business understanding, will change that to just 30 days from the day you receive the item!

"

Amendments to the PayPal Buyer Protection Program

Effective 1 July, 2024:

• In addition to meeting all other eligibility requirements for PayPal’s Buyer Protection Program, disputes asserting Significantly Not as Described claims must be opened by the buyer in the Resolution Centre within 30 days of the delivery or fulfilment of an order or within 180 days of the date a payment was sent by the buyer to the seller, whichever is sooner. The timeframes for opening other disputes asserting other claim types (including Item Not Received, Unauthorised Transactions, or other errors) are not changing at this time.

 Either Paypal retorts this policy change, or it will be a nail in the coffin of their business.

[kernowlass]

@elmura 

Personally I think my credit card gives better protection than Paypal so I and many others don't use Paypal for their limited buyer protection policy.

The policy has to be limited as both sellers and buyers are their customers and they have to provide seller protection as well. 

I use paypal for speed of checkout and to save me having to input my card details over and over when checking out of sites, their Paypal buyer protection is just an added limited benefit.

I think 30 days post receipt of an item is ample time to see if you are happy with it or not?

[elmura]

A seller has to pay a significant fee out of their transaction proceeds to PayPal in order to provide cover for protection to both buyer and seller. This is much higher than merchant credit card fees.

Modern internet browsers have the ability to securely save your credit card details in the same way, so speed of transaction should not be a benefit for PayPal. In fact, I find it slower as the transaction opens a Paypal login where you then choose your payment method, approve, etc.

The main gripe of losing the 180 days protection is if something goes wrong with the product in that timeframe and the seller doesn't honour the warranty or doesn't respond. Essentially giving you an unofficial 6 month warranty.

[kernowlass]

@elmura 

Paypals seller fee is to process buyers payments including from credit cards, they don't pay for seller protection its a given.

I don't save my card in internet browsers, its only saved in one place ie Paypal as most merchants accept Paypal.

When I use checkout I use my fingerprint to log in to the app and as my c.c. is pre-selected don't have to input anything.

The 180 days is for 'items arriving SNAD' if you have had the item several months then its unlikely you would win a SNAD dispute as paypal does not provide guarantees or warranties.

[citydwelleer]

PayPal us just a payment system that allows criminal activity to go unchecked and you can see who they really work for when you understand that  nearly every financial crime that happens online they make a 5-30% cut of the loot. Talk to your card reps if you have issues,  its more likely they would care.

[elmura]

@kernowlass Paypal charges significantly higher fees than credit card companies. This is not just to process your transaction and pay the lawyers... Paypal's main benefit is the buyer and seller protections.

Speed of transaction is only a benefit where you don't use other fast payment methods. Most large online stores (ebay, Amazon etc) save your credit card details so it's just a matter of authenticating.
I am both a buyer and a merchant. I research my payment options and choose which are the most beneficial. 

As a merchant, the buyer has to cover the greater fee that P/P charges if they wish to benefit from buyer protection. 

[kernowlass]

@elmura 

Merchants can get lower fees dependent on sales volumes etc. The can also incorporate other payment wallets into their payment flow.

Equally fees are lower for  PayPal Payments Pro and PayPal Payflow Pro.  

Plus friends/family fees funded via your bank account linked to paypal is absolutely free.

However as a buyer I prefer Paypal as I don't want to keep adding my credit card to every website that I purchase from and don't want it saved on every website either !!!

But whether you use it or not Paypal is diversifying and adding other payment wallets etc that should make it more competitive.