• PayPal updates Buyer Protection Policy.


    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;
    This means no more charge-backs on Kickstarter, Patreon, and sites of similarity.

    e. Gambling, gaming and/or any activity involving a chance to win a prize;
    This is pretty huge if your into online gambling of any kind and I think this would have applied to CS:GO skin gambling websites if 99% of them had not been shut down as of recent.

    h. donations;
    Here is the big one. A lot of people are saying this is for Twitch streamers and their donation income. But it is not yet certain simply because the financial support that streamers get from viewers are tips or gifts. This means unless the Broadcaster is a registered charitable organization, they're unlikely to see any benefit at all from this change. Charities on the other hand will be seeing a lot less charge-backs coming from charity streams.




    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.
    What do you guys think of these changes? I know some of you run streams on Twitch and maybe even some might use Patreon or Kickstarter. How will this impact you?
    This article was originally published in forum thread: PayPal updates Buyer Protection Policy. started by Kenneth View original post
    Comments 2 Comments
    1. JoeThePlumber's Avatar
      JoeThePlumber -
      Great news for the awesome people I support on Patreon! I would never pull a chargeback on them but I don't know of others do that?
    1. GoXLd's Avatar
      GoXLd -
      Sorry, but these changes need to take a long time ago. If a person make bets, donations. He cannt make a refund.