We have today finally taken the decision to no longer accept PayPal payments for any of our work or services. We have had a fairly uneasy relationship with PayPal for a long time due to it’s rather suspicious policies of arbitrarily freezing accounts and refusing to release funds (some times for several days) whilst they
earned a little interest clarified that we weren’t money laundering or anything else untoward.
We’ve even heard stories of business and events getting into severe difficulties due to PayPal’s policies and the web is full of anti-PayPal websites and campaigns against the payment processor’s actions.
In response to these issues, we took the decision a while back to limit our use of PayPal to only accept payments of less £100 to eliminate the risk of having any larger and potentially cashflow affecting payment being tangled up by PayPal.
Today however, PayPal has really made it impossible for us to continue to use their payment processing facilities to process any further payment for us.
For those you not already aware, PayPal announced today changes in it’s legal agreements for UK customers that come into effect in June this year. In summary the effects of these changes are that PayPal’s buyer protection scheme will be extended to payments for services, digital downloads and other intangible goods. At the same time the time limit for claims made under the scheme will be extended to 180 days. Whilst on the surface this may seem like great protection for buyers. It poses a huge risk of major issues for sellers of such goods and services as it means a customer can raise a claim against the quality of your goods or services and request a full refund almost 6 months after the sale when it may be almost impossible for you to defend the case due to lack of supporting evidence etc.
It is our firm belief that UK consumer protection legislation is already more than adequate to protect buyers and it is not PayPal’s place to provide additional protection that could prove detrimental to businesses and open to abuse by unscrupulous people. On top of this, based on our experience of dealing with staff at PayPal we would have to question their competence to adjudicate in what could be rather complex circumstances.