Why I Don’t Accept PayPal for Non-shippable Goods and Services

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PayPal like we already know is a worldwide payment solution that is widely used in sending and accepting payments from different parts of the world. Over the years PayPal has made online money transfers look really easy and hassle free, with PayPal one can send and receive money almost instantly without having to wait a few days for checks to clear the bank.

Many freelancers and business firms from different dimensions make use of PayPal infact a lot of freelancing platforms like Fiverr, upwork, sellers/buyers on eBay and a host of other freelance platforms use and accept PayPal as payment method.

Paypal for business

No lies PayPal is really a good Payment Gateway but the downside is quite disheartening, and anyone working on both of this platforms must have experienced PayPal frustration at least once or twice

Indeed whatever is of an Advantage also has it’s disadvantages

PayPal may wake up one day and decide to freeze or limit your account for 21 days to as long as 180 days or more and this might just mean a termination of every plan you had for the money, i understand that this are temporary limitations and a security measures but this isn’t the best way.

How PayPal Account Limit Works

PayPal can limit your account for various reasons, sometimes it doesn’t necessarily mean you have done something wrong, according to PayPal this is a way to protect the buyer and the seller. And once this happens you will temporarily no longer be able to withdraw, send, or request money pending the day which your account limit is lifted.
Paypal Account Access Limited

Reasons Why Your PayPal Account Was limited

There are several reasons why your PayPal account was limited, your PayPal account may be limited if:

  • Illegal Transactions was carried out on your account
  • An unauthorized person may be using your account.
  • Your PayPal account is out of compliance with regulatory requirements.
  • You are selling banned goods on your account.
  • You have too many charge back on your account.
If Illegal transactions are carried out using your PayPal account or you are selling banned items i.e drugs, guns, weapons, etc then expect PayPal to limit your account if they haven’t done that already.
And if you experience a rapid change in your account, say you was selling goods or receiving payments of $35 and suddenly start receiving payments of $500 to a thousand dollar then your account might stand the risk of being limited for further reviews (Most times this takes a few days).

But here’s the big deal and why i stopped receiving payments for Non-shippable Goods and Services with Paypal

If you are seller of Non-shippable Goods and you are receiving PayPal payments, expect a chargeback from some buyers even after you have provided the service which you was paid for in full. If this happens, it’s a wise decision to file PayPal dispute immediately because if you are not smart enough with convincing and enough evidence you will loss. This is one of the reason some people refer PayPal as the Scammers Favorite.

Okay let’s take a look at it this way, Mr. A needed a digital product or lets say course so he logged on to online shop of Mr. B. and then he looked around and found the exact course of which he wanted so he added to cart and checkout with his PayPal. Moments after the product was delivered/downloaded Mr. A logged on to PayPal and made a charge back thus leaving Mr. B at the loosing end.
If Mr. B isn’t smart he will lose the product, and the money because PayPal takes buyer protection very serious than sellers protection especially if you are not selling a physical product. Very pitiable right? 
PayPal Seller Protection and Eligible Country for PayPal seller protection
According to PayPal to be eligible for PayPal Seller Protection, you must meet all of the below requirements.
  1. The said item must be a physical & tangible goods that can be shipped.
  2. You must ship the item to the shipping address on the transaction details page in your PayPal account for the transaction. If you originally ship the item to the recipient’s shipping address on the transaction details page but the item is later redirected to a different address, you will not be eligible for PayPal Seller Protection. PayPal therefore recommend you don’t use a shipping service that is arranged by the buyer, so that you will be able to provide valid proof of shipping and delivery.
  3. You must respond to PayPal’s requests for documentation and other information in a timely manner as requested in PayPal’s email correspondence with you or in Paypal’s correspondence with you through the Resolution Center. If you do not respond to PayPal’s request for documentation and other information in the time requested, you may not be eligible for Seller Protection.
  4. If the sale involves pre-ordered or made-to-order goods, you must ship within the timeframe you specified in the listing. Otherwise, it is recommended that you ship all items within the 7 days time frame after receipt of payment.
So before you start using PayPal for business, make sure you have read and understand PayPal’s terms of use as this will save you from unnecessary troubles and headaches.
NB: This doesn’t mean i no longer make use of PayPal
Meanwhile PayPal seems to be on the lookout to making an update to Sellers Protection
Paypal seller protection
See you soon as i’ll update this post later on the best PayPal alternatives.
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My name is Kings Chukwuebuka Amalaego. I created Toomakesense with the goal & passion of helping as many internet marketers, bloggers and non-tech savvy’s as i can.

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