Paypal to start providing protection for digital goods

It looks like, for once, Paypal is moving in the right direction. I doubt this would change chargebacks for Runescape and gaming goods though as they would need knowledge on it being delivered. However, I feel like it could change a few outcomes of some chargebacks where they used to just say that they don't offer protection/support for digital goods.

 

the problem is unauthorized payments exists.

 

It will always exist. The same with asking your bank to reverse a transaction. However this is Paypal moving in the right direction and adapting with people's needs and wants. I've seen people who would just get straight up shot down for paypal when they mention the transaction was for virtual goods, it could change things for the better.

 

Doesn't do much if the digital goods aren't traceable. It probably helps purchases made through websites though.

 

Selling plumbing services $2.5/m

But really, this is a good step for paypal but a meaningless one for most sythe users. Like ghast said, it's not gonna help when selling untraceable goods (also, definitely no support for anything bitcoin-related), but might help for other things.

 

If you follow KYC guidelines, you will be protected against unauthorized payment chargebacks, (I.e: asking for ID)

I too doubt this will affect runescape, since they would be pirated goods/goods you don't have the IP rights to sell.

 

I've lost hundreds of dollars due paypal claimbacks... thats really fucked up.

 

Can you provide a link to KYC guidelines? Is it on the sythe forums?

I have tons of gold that I want to sell for a different game and I'm so afraid of accepting paypal.

But I have heard that a gold seller had a claim against him for buyer claiming it was "unauthorized transaction". Needless to say, gold seller won that claim and buyer didn't. This is good news if this protects gold sellers.

 

Good to see. But yeah we can't be overly optimistic

 

It's nice to see PayPal adjusting to the modern age more, but most scams I see that occur are done via unauthorised transactions.

 

This might end up helping with certain types of transactions, not sure about RS but interesting to see what will happen

 

http://en.wikipedia.org/wiki/Know_your_customer

 

I don't really see it as a positive for sellers. Since I sell virtual goods, I win a lot of chargebacks from scammers when they put item not delivered/not as described because PayPal doesn't cover virtual intangible goods for buyers. This is just making it easier for sellers to get screwed by PayPal

 

PayPal's strategy is to protect the buyer, so I don't think they're gonna do something about it anytime soon.

 

@KronixDivisionBoosting: It helps to have the buyer send the payment WITHOUT an address and a note stating 'I am purchasing intangible goods'

On subject: Excellent news for buyers! There are many websites out that scam people through PayPal and you're pretty much helpless for buying a virtual item.

 

Well i hope they dont fuck this up too

 

True, but really nothing PayPal could do about it.
They can't tell whether the seller/buyer is being scammed, since it's virtual goods...

 

This - this update actually makes it worse for sellers, since we actually have to go through the process of proving a transaction was made. Bit of extra work.