PayPal Revises Buyer and Seller Policy for NFT Transactions

PayPal, the renowned payment giant, has announced revisions to its trading policy regarding  NFTs effective May 20.

The company will no longer offer buyer protection for NFT purchases, and it will amend its seller protection program, removing safeguards for transactions involving NFTs valued above or below $10,000.

Under the revised policy, NFT sales exceeding the threshold will no longer be covered against false claims and chargebacks while for transactions below this threshold, seller protection will only apply if the buyer claims it was unauthorized and meets all other eligibility requirements.

Source: Paypal

PayPal’s Decision Reflects Evolving Challenges

Previously, PayPal provided coverage under both buyer and seller protection programs for transactions involving NFTs but the decision to revise these policies comes in light of the challenges associated with proving order fulfillment and the rapidly evolving digital asset market.

PayPal’s protections served as a safety net against falsely advertised items and fraudulent payment disputes and the recent changes are expected to impact buyer and seller confidence in NFT transactions on the platform.

Despite removing these protections, PayPal remains active in exploring the blockchain space. Their recent patent filing for an NFT purchase and transfer system suggests ongoing exploration in the field, including potential features like offering users royalties and other rewards.

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*All investment/financial opinions expressed by NFT Plazas are from the personal research and experience of our site moderators and are intended as educational material only. Individuals are required to fully research any product prior to making any kind of investment.

The post PayPal Revises Buyer and Seller Policy for NFT Transactions appeared first on NFT Plazas.


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