Paypal limits purchase protection facility

News on 11 May 2016

PayPal US has updated its user agreement effective June 25, 2016 saying it will no longer offer purchase protection on payments made to crowdfunding websites, gambling or gambling websites, gift cards or government agencies.

PayPal’s purchase protection facility currently provides customers with a safety net if a purchased item does not arrive or if on receipt is not what was described.

In the case of crowdfunding, PayPal will not longer include purchase protection on payments which currently leave it open to claims should the project fail or be illegitimate.

“This is consistent with the risks and uncertainties involved in contributing to crowdfunding campaigns, which do not guarantee a return for the investment made in these types of campaigns,” PayPal said.

The updated customer agreement will initially apply to Brazil, the US, Canada and Japan, amongst others, but reportedly not the UK at present.

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