Paypal has always been a dangeous method of payment for website selling transactions. Should you sell someone a website and receive payment he can file a claim against you and get a full refund whether he has a case or not. Paypal doesn't discuss this. Quite simply if you don't have a postal receipt to demonstrate you've shipped the goods to the buyer, Paypal will debit your account and refund him.
Some sellers got around this by burning the site's files to a CD and shipping them to the buyer just to meet Paypal's rules and protect themselves against unfair claims for refunds.
That won't work anymore. Paypal have now amended their terms. Should you try and use the above protection the buyer can now ship the CD back to you, provide Paypal proof that the goods were returned ... and get a full refund at your expense.
Are you one of those buyers/sellers still using Paypal? Are you going to change what you do because of this?
- now enable not only UK Users but also non-UK Users whose accounts are governed by this particular version of the PayPal User Agreement, to be eligible for reimbursement for Claims in respect of “Significantly Not As Described” items purchased with PayPal outside of eBay. Section 13.7a has been deleted.
- clarify that a seller will be liable to PayPal if that seller loses a Claim from a buyer with a PayPal account registered anywhere in the world. The relevant part of section 13.7 now reads as follows:
“Sellers: As a seller you are liable to PayPal if you lose a Claim from a buyer with a PayPal account registered anywhere in the world. This includes, without limitation, where you sell to a buyer who is a Full Programme User and the buyer files a SNAD Claim, in which case you will generally be required to accept the item back and refund the buyer the full purchase price plus original shipping costs. You will not receive a refund on your PayPal fees. If you lose a Significantly Not as Described Claim because the item you sold is counterfeit, you will be required to provide a full refund to the buyer and you will not receive the item back (it will be destroyed)."