Consumer complaint received 2019-06-10
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Confusing or missing disclosures — 
Company: Paypal Holdings, Inc (MN)

For the past two weeks I have been trying to get clarification from PayPal on their Seller Protection policy. My question is in regards to selling tickets on a marketplace and using PayPal as the means to collect funds and complete the transaction. The tickets are digital tickets and they are transfer electronically. 
One representative told me, " I can confirm that as long as the payment is sent via payment for goods/services, even if the tickets are digital the payment will be covered. For more information om this seller protection, please go to this link, https : //www.paypal.com/XXXX XXXX XXXX. '' However, the issue here is when I go to the link that was provided there is a section that reads : Ineligible items and transactions Your sale is not eligible for coverage under PayPals Seller Protection program if : It involves intangible, non-physical, items, including digital goods, and services. Digital goods are delivered and used in an electronic format, like a song delivered online or through a mobile application. 


So, I have been writing to them multiple times and given the common scenario for selling, collecting funds and completing the transfer of the tickets to try get a clear answer so I can be sure I am covered or not. 
This is what I wrote to them and would like addressed : 1. How are tickets that are transfer electronically classified in relation to the PayPal terms of service? 

2. Are tickets that sold, paid by the buyer via PayPal, and delivered to the customer electronically, either through an App or website transfer, qualify for Seller Protection? 

3. What if the buyer claims they didn't receive the tickets after the event by filing a claim with their credit card company, but the seller can prove with emails and transfer confirmations that the tickets were delivered electronically? Is the seller protected via the PayPal terms of service? 



You stated additional requirement and so I am not sure you are entirely understanding the question. 

4. How does a seller ship the item to the address on the Transaction Details page when the items are delivered electronically? There is no ship to address. 



Marking the transaction as eligible for Seller Protection after the transaction does not help me. I am trying to confirm that I am cover prior to the transaction. It does me no good for PayPal to tell me it is not eligible after the sale has taken place. That is the entire reason to my questioning and the reason I am attempting to get clear answers from PayPal on this issue. I don't understand why PayPal is making this harder than it needs to be. 



5. Again, not sure you understand how electronically transferred tickets work, but there is no such thing as 'signed delivery confirmation ' when transferring these tickets. Is an email, generated by either the application and/or XXXX, confirming the individual successfully claimed the ticket adequate information for proof of delivery? 



6. PayPal states 'Most buyer have up to 180 to file a dispute with PayPal XXXX. How does this work for tickets? Why would an individual file a claim on tickets to an event AFTER the event? This is my biggest concern. If I am not protected via the Seller Protection and a buyer submits a claim AFTER the even, I am screwed and out the money. This would make for an easy scam for buyers to exploit. And if this is the case, please let me know because I know many people that would love to take advantage of this Buyer Protection where there is no Seller Protection. 



Information regarding tickets. Place tickets for sale on a marketplace with a price. Negotiate a final price. Negotiations typically are in email, messenger, or text form so there is a form of documentation. Agree on payment process in the negotiations. If PayPal is used, the buyer will with the purchasing goods and service option via PayPal. Buyer can also request to be invoiced. If requesting an invoice that invoice is generated through PayPal. BuyeXXXX pays. Seller electronically transfers the ticket. Tickets are transfer either Ticketmaster website/app or, in the case of XXXX season tickets, through the XXXX team App ( i.e. XXXX XXXX ). Transfer are sent to either an email address or phone number as provided by the buyer. This is given during the negotiation process and may also be referenced on the PayPal invoice and/or PayPal payment. After the transfer the seller receives and email from either XXXX or the Team App letting the seller know that a transfer of tickets has been initiated. The email is usually sent as a security measure to let the owner of the tickets know of a transfer so they can take the proper steps if they did not initiate the transfer ( i.e. account hacked and unauthorized transfer ). Finally, the seller receives and email from XXXX or the Team App letting the seller know that the tickets were successfully claimed by the individual. I always let the buyer know when I am going to be transferring the tickets so they can contact me immediately if the transfer does not work for some reason. This gives me the opportunity to contact XXXX or the Team to fix any of the issues. 
Sometimes there is additional messages such as the buyer thanking the seller for the tickets and/or the seller telling the buyer to enjoy the event. In a nutshell this is how it typically works. This additional information should help you answer the questions clearer, so I know if I am protected or not. And I can let others know if they would be protected in similar situations.