PayPal have issued an update to their terms and conditions which means after the 19th of April 2018 they will no longer offer Pay after Delivery in the US. Currently their doesn’t appear to be a similar announcement for UK PayPal users.
The reason this matters is that often users will buy a product knowing that they can potentially examine it in the comfort of their home and if need be return it before they even pay for the product. Naturally returns don’t necessarily increase but buyers may be inclined to shop more. It could also be handy for people paid monthly as if they run short of funds at the end of the month they can drop an order in knowing that by the time they had to pay their next month’s salary would be in their bank account.
Personally I’ve had Pay after Delivery enabled on my PayPal account ever since it was introduced in the UK in 2014 and love the service. About 14 days after ordering I’ll get an email telling me the amount will be debited from my bank account and it’s as simple as that.
Change to unauthorised transaction policy
PayPal US have also slipped in a clause which could be directly aimed at eBay sellers.
“We’re updating the additional requirements for coverage of Unauthorized Transactions for sellers under our Seller Protection program to require that the payment must have been made in connection with a transaction where the buyer logged into their PayPal account to complete the transaction in order for sellers to be covered under the program.”
– PayPal US User Agreement effective 19th April 2018
Many eBay buyers will have linked their eBay account to their PayPal account and so will pay without ever logging in to PayPal. This transaction appears to suggest that in these circumstances there will be no seller protection.
In a double whammy they also add a new term “If you sell on a marketplace and accept payment through your PayPal account, a hold may be placed on a payment sent to you at the instruction of the marketplace“.
PayPal US also have some fee changes for faster business withdrawals and for sending money to friends and family overseas. You can read the full PayPal.com user agreement amendments on the PayPal website.