Last week, PayPal announced changes to its terms of services, and it included an alarming update — the platform’s buyer protection policy will no longer cover transactions involving goods intended for resale.
Regarding the buyer protection, PayPal’s policy update states: “We are excluding items intended for resale, including single item transactions or transactions that include multiple items, from reimbursement eligibility under our Purchase Protection Program.”
Additionally, sellers whose items are claimed to be “Significantly Not as Described” (SNAD) are not guaranteed to get their product back. PayPal’s notice states that items either may not be returned to sellers or sellers may be required to accept the returned item and pay for the shipping costs.
View this post on Instagram
Beginning July 31st, @paypal will no longer protect buyers and sellers for transactions involving goods intended for resale. ⠀⠀ ⠀⠀ The policy update was issued on June 12th, which reads: “We’ve added items intended for resale, including single item transactions or transactions that include multiple items, as items that will be ineligible for reimbursement under Paypal’s Buyer Protection.” ⠀ ⠀ “Items intended for resale” are losely defined as finished goods that are purchased from a manufacturer or a distributer by a retailer which are eventually intended to be sold for a profit. It is still unclear if private resellers will be affected. ⠀ ⠀⠀ This is an unprecedented move from the payment service provider given that its protection policy is one of the main reasons people use it in the first place. #hsnews
“Items intended for resale” are loosely defined as finished goods that are purchased from a manufacturer or a distributor by a retailer, which are eventually intended to be sold for a profit. It is still unclear if or how private resellers will be affected.
This could potentially have far-reaching consequences, as PayPal’s buyer and seller protection policy is one of the main reasons people use the service to buy and sell sneakers and other goods on the secondary market.
To read PayPal’s full policy changes, head to the site here. These changes are effective September 14, 2020. In the meantime, stay tuned for any updates around this topic.
To stay updated on everything happening in the sneaker world, follow @highsnobietysneakers on Instagram, check our sneaker release date calendar, and subscribe to our sneaker chatbot on Facebook to receive lightning-quick updates to your inbox.