PayPal has posted a Notice of Ammendment (seen here)
Some main take-aways:
6. PayPal Buyer Protection
The following types of transactions are now excluded from coverage of PayPal Buyer Protection (section 13.3 is amended accordingly):
c. Payments on crowd-funding and/or crowd-lending platforms;
The following types of transactions are now excluded from coverage of PayPal Buyer Protection (section 13.3 is amended accordingly):
c. Payments on crowd-funding and/or crowd-lending platforms;
e. Gambling, gaming and/or any activity involving a chance to win a prize;
h. donations;
So what does this all mean in the long run? Well Patreon users and Kickstarters are in the streets rejoicing because they will be losing out on a lot less money. Twitch streamers on the other hand are most likely going to be in the same boat that they always have been. Either battling a ton of charge backs or accepting defeat everyday when people charge back a chunk of your income. Keep in mind this does not stop bank sanctioned charge-backs in the case of stolen credit cards. Hopefully section H will give streamers protection but right not it does not verify that whatsoever.
Reddit User /u/Nerdorable
There's a significant amount of money coming into PayPal every day on account of Twitch streamers. That money is being deposited, sent, and in some cases charged back while PayPal earns profits in transaction fees. Meanwhile, streamers allow large sums of money to languish in their accounts for 6+ month periods of time, all out of concern for charge-backs. PayPal makes money off that interest, too.
Streamer protection isn't profitable to PayPal. That's the bottom line.
There's a significant amount of money coming into PayPal every day on account of Twitch streamers. That money is being deposited, sent, and in some cases charged back while PayPal earns profits in transaction fees. Meanwhile, streamers allow large sums of money to languish in their accounts for 6+ month periods of time, all out of concern for charge-backs. PayPal makes money off that interest, too.
Streamer protection isn't profitable to PayPal. That's the bottom line.
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