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Home»NFT»PayPal removes NFT transaction protections
NFT

PayPal removes NFT transaction protections

2024-04-16No Comments2 Mins Read
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PayPal plans to change its protection policy for NFT transactions, marking a notable shift from its previous support for the tokens.

According to its terms and conditions page, the payments giant is changing the parameters of its Seller Protection Program to exclude Non-Fungible Tokens (NFTs) with a transaction amount of $10,000 or more starting May 20.

The updated terms surfaced on March 21, revealing that PayPal will no longer cover NFT purchases under its buyer protection policy. Additionally, NFT sales over $10,000 are not protected from false claims, chargebacks, or other scams that can harm sellers financially.

You might also like: Uniswap’s trading volume reaches $3 billion despite SEC claims

The development follows an earlier restriction of support for NFT sellers by PayPal, despite previously offering refunds for falsely advertised items and refunds for sellers affected by payment disputes and fraudulent refund requests.

PayPal’s growing involvement in blockchain technology and digital assets is clearly visible, especially with the rollout of cryptocurrency support on its platform in 2022 and a patent application for an NFT purchase and transfer system that promises user royalties. Still, these policy revisions suggest a cautious approach to the booming NFT market.

In November, PayPal announced that it had received a subpoena from the US SEC regarding its US dollar-pegged stablecoin, PYUSD. PayPal’s 10-Q report details that the subpoena requested the production of documents, and PayPal stated that it had cooperated with the SEC’s investigation.

Read more: Co-founder of NFT Price Floor predicts a comeback of high-end NFTs despite the market pullback

See also  BRC-20 transaction fees drop from May 8

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