On May 6, 2022, PayPal is making changes to its terms and conditions. These primarily affect NFT trading and complaint management.
This will change in the Paypal terms and conditions on May 6th.
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On May 6, 2022, the payment service provider PayPal will introduce changes to its General Terms and Conditions (GTC). These mainly relate to trading in NFTs and the handling of complaints.
Changes to NFTs
In the future, PayPal will only cover trading in NFTs to a limited extent through its buyer protection via the new terms and conditions. NFTs (Non-Fungible Tokens) are unique, digital objects that cannot be replaced or duplicated.
With the buyer protection explained in the new T&Cs, PayPal no longer covers “certain non-replaceable tokens (NFT) with a transaction amount of more than USD 10,000”. Most other NFTs under $10,000 will continue to be covered by Buyer Protection, according to Paypal. However, in order to benefit from buyer protection for NFTs, sellers must demonstrate that the intangible item or service was provided and the buyer received the goods or benefited from the service.
Better complaint management
Another change in the PayPal terms and conditions relates to complaint management. The payment service wants to “record further information on customer complaints” in the future. In this way, the company wants to improve the procedures for complaints and help customers in a more targeted manner. However, it is still unclear what additional information PayPal intends to record in the future in the event of a complaint.
New section for business account holders
On May 6th, Paypal will also add a new section for business account holders to its terms and conditions. In this new section, PayPal clarifies that PayPal’s liabilities may be subject to the administrative and write-off powers of a regulatory or supervisory authority. According to PayPal, it is obliged to include this wording so that government agencies do not have to rescue financial institutions like PayPal if they get into financial difficulties.
Personal Information and Donations
References to Ebay that no longer apply will also be removed from the terms and conditions. Paypal also expands the data protection declaration. In the new version, information can be found here on how PayPal collects and uses personal data from users who do not have a PayPal account.
The Terms of Service are also expanding to include the ability for incorporated non-profit organizations to be granted by Paypal Giving Fund Ireland from donations made by users in Ireland and elsewhere. Paypal also wants to rearrange some information. In this way, the terms and conditions should offer more clarity and details can be found in the places where users would usually look for them.