Why is eBay dropping PayPal

PayPal protection does not always work: You should be aware of these exceptions

PayPal works like a trusted person in the middle

Put simply, the company, as a kind of middleman, ensures that both sides meet their obligations and that goods and money are actually exchanged. If you want to use PayPal, you have to log in, choose a username and password and enter the account details. The other side does not see this either. With a purchase, PayPal transfers the invoice amount to the retailer immediately. The amount will then be debited from the buyer's account or credit card within a few days. If the delivered goods are broken or do not arrive, PayPal buyer protection applies. The purchase price plus postage will be transferred back. Sellers are also sure: They get their money even if the goods allegedly did not reach the buyer and the dealer can prove the shipment. Michael Sittig from Stiftung Warentest:

The whole thing is also free of charge for me as a buyer. If I didn't have the protection, I would only have civil law, that is, going to court.

If you buy through PayPal, you don't pay any fees. Sellers pay 35 cents per transaction and almost 2.5 percent of the purchase price. If a lot is processed via PayPal, the fees drop significantly.

"Sending Money to Friends and Family"

Quickly pay your colleague for lunch and get the money for it via PayPal, send your friend the money for the concert ticket you bought: PayPal has introduced the "Send money to friends and family" function for such cases, for which there are no fees become due. According to the company's terms and conditions, the function may expressly not be used to pay for goods. This is why PayPal protection does not take effect if something goes wrong. Fraudsters take advantage of this, for example when they sell something on eBay classifieds. You ask the buyer to send the money using the friends function, but there is no trace of the goods. Our experts say:

If someone from South Baden sells me a DVD, they are of course not my friend. Even if many do it in order to save fees. But that can be expensive. You cannot invoke PayPal protection in such cases.

Hacked Account Fraud

Even serious sellers should never allow buyers outside their family and friends to use the free payment function, even if they save on fees. According to Stiftung Warentest, this goes wrong when fraudsters log into third-party PayPal accounts with stolen passwords and use them to pay for goods. They are then gladly sent to packing stations. If the fraud is discovered, the owner of the hacked PayPal account gets the money back. This will be charged back to the seller's account. He's standing there empty-handed, even though he can prove the shipment.

Shipping only with receipt

The goods arrive damaged or instead of the expensive kitchen appliance from a brand manufacturer there is only a cheap plagiarism in the package. If you have paid via PayPal, you simply send the goods back and apply for buyer protection. So far so easy. But buyers should always choose a shipping route that they can prove afterwards. For example, those who only send the goods back in a letter or in a parcel without proof will go away empty-handed in an emergency. Michael Sittig:

I need a shipping receipt with all the data on it. Ideally, my name, that of my business partner and when it was sent.

PayPal will only accept this as proof that the goods have been returned. According to Stiftung Warentest, fraudsters take advantage of the fact that buyers are not always aware of this loophole. Then, for example, expensive trading cards are offered and only cheaper replacements are sent. Anyone who sends it back in the letter also has no buyer protection. Sellers should also always use a shipping route for which there is valid proof according to PayPal. Uninsured parcels, for example, cost less, but seller protection does not apply here. All information about the shipping conditions and the receipts can be found here.

PayPal protection does not apply to all goods

If you buy a used car or motorcycle, you can pay for it via PayPal. The buyer protection does not apply in such cases. This also applies if vouchers, gift cards or licenses for digital content are sold. This could be a license for Windows or a computer game. If you buy such licenses cheaply on eBay, you cannot rely on PayPal. Those who hand over or pick up goods in person are also not protected against fraud by the payment service. In response to an MDR request, the company writes:

If a buyer pays with PayPal and still wants to collect the goods personally, this should be refused. Because PayPal cannot then understand whether the goods have been delivered.

It doesn't matter whether you filmed the handover or had a witness with you.

PayPal protection in the event of bankruptcy

Many buyers do not know that either: The payment service also steps in in cases where a retailer or an online shop goes bankrupt. If the goods are then not delivered, buyers can withdraw from the contract and apply for buyer protection from PayPal. Incidentally, PayPal points out that this protection also applies to digital goods. This can be flights, travel vouchers or concert tickets. In the event of the bankruptcy of travel companies, consumers are fundamentally protected. Then you don't have to hope that the insurance will take over. What is important, however, is that the application for buyer protection must be submitted within 180 days of the conclusion of the contract. So if you booked a flight well in advance of your trip, you could still end up empty-handed. For victims of the big Thomas Cook bankruptcy in autumn, however, buyer protection is unfortunately no way out. According to PayPal, the payment method was not offered on the Thomas Cook sites in Germany.