Take a quick look:
- PayPal said that the change was made due to “uncertainty” regarding proof of fulfilment.
- Protection against chargebacks and false claims is not available for sales exceeding $10,000.
- Transactions under $10,000 are protected as long as the buyer claims that it is an unauthorised transaction and meets the other requirements.
PayPal’s policies on buyer and seller protection have been updated for NFT sales and purchases. The global payment giant has updated its section on Amendment to Purchase Protection Program. You can also read about the importance of this in our article It is re-evaluating the program in order to exclude those who are not eligible non-fungible tokens (NFTs).
This update is for payments initiated by users via third-party platforms using their PayPal Balance accounts and the assigned account number and routing numbers (PayPal’s Direct Debit feature).
PayPal has also changed its Seller Protection Program to exclude NFT Transactions exceeding $10,000 from the protection of false claims or chargebacks. PayPal has said that for transactions below or equal to $10,000 the seller will still be covered if “the buyer claims it was an unauthorised transaction and the transaction meets the other eligibility criteria.”
PayPal said that the changes will be implemented on May 20, 2024. PayPal explained the reasons behind the changes by stating that “uncertainty about proof of order fulfillment and other variables led to policy tweaks.”
The announcement comes at a time when there is an upswing in the cryptocurrency market in terms of prices and Web3 funding, as well as a demand for new assets such tokenised real-world properties and crypto restaking.
PayPal updated its policy after publishing a notice on March 21 that stated it would no longer protect certain NFT transactions.
PayPal has filed a lawsuit against the. Patent application for a NFT market The USOPT is the only vertical of online payments giant, PayPal’s digital assets strategy that has not kept up with other verticals such as the Stablecoin PYUSD Support for the traditional crypto transaction.
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