PayPal Seller Protection Update Shakes Sellers

PayPal announced a change to their user policies just over a week ago. Many sellers are not happy. The changes will go into effect March 10, 2010.

The most controversial of the updates deals with seller protection and delivery services, such as USPS. The amendment reads:

The following will be added to section 11.7 (newly numbered 11.5) as an additional example of transactions not eligible for seller protection:

“Items that are not shipped to the recipient’s shipping address on the Transaction Details Page. If you originally ship the item to the shipping address on the Transaction Details Page but the item is later redirected to a different address, you will not be eligible for seller protection. We therefore recommend not using a shipping service that is controlled by the buyer.”

PayPal User Updates

Sellers seem to have mixed feelings because they aren't very clear on how this update will affect them. Many feel that the update and the publicity of it will open the door to fraud even more than in the past. Some even say that it appears that PayPal is suggesting that they shouldn't use USPS because the customer is able to redirect their mail.

Sellers were sharing their thoughts on this at Seller Central
Click Here

To see what sellers are saying in their remarks at AuctionBytes
Click Here

To see what TheBrewsNews thinks and to read comments from their readers Click Here

Here is what they are saying on the eBay Answer Center - PayPal forum Click Here

See what they are saying over at Tamebay Click Here

There are more opinions out there but this will give you an idea of the confusion and concern that sellers are facing.

What is your take on this new policy?

Please leave your comments by clicking on the comments link below this article, just to the right of the time stamp.