Paypal seller protection for Gift cards/vouchers?

qsk

I sold two gift vouchers - both went to hacked accounts (there seem to be a lot of hacked accounts these days:-(. "Unauthorised payments" claims were fired. Luckily I posted by tracked mails in both cases. Paypal protected me on one case but reversed the other. I phoned Paypal to discuss the reversed one. The adviser initially said Gift Cards are not protected. I argued that all tangible and physical goods are covered in the policy and gift cards, when posted, are physical and tangible goods. The adviser in the end gave me a credit for the amount.

Paypal seller protection scheme seems to be flawed as there is no clear definition with respect to "physical" and/or "tangible". Common sense prevails but different people have different understandings.

Has anyone ever seen any Paypal definition of "physical/tangible" and/or if posted gift cards belong to this category?

forgotmyname

Are the gift vouchers transferable?

High risk of fraud because a buyer can use the voucher and then claim its not as described and return for a refund.

theonlywayisup

Paypal are very clear about physical gift vouchers.

Gift vouchers have no BUYER protection. This means a BUYER might be able to open a case but it should always be closed in favour of the SELLER.

Your purchase is an eligible purchase. Purchases of most goods and services are eligible (including travel tickets, intangible items such as rights of access to digital content and other licences), except for purchases of the following :
real estate (including, without limitation, residential property);
businesses (including, without limitation, any items or services forming part of a business or corporate acquisition);
vehicles (including, without limitation, motor vehicles, motorcycles, caravans, aircraft and boats);
custom made items (unless they are claimed to be Not Received);
goods and services prohibited by the PayPal Acceptable Use Policy;
industrial machinery used in manufacturing;
items equivalent to cash (including, without limitation, gift cards);
goods and services purchased using Zong, Website Payments Pro, Virtual Terminal or Personal Transaction payments; and
any wager (whether by way of backing or laying against any outcome or otherwise) and any other opportunity to benefit from a gambling activity.

Even Paypal reps get confused.

As you sent them with tracking, you should not have had to defend an INR or SNAD as the BUYER has no protection. However, in the case of fraud (hacked account) where the buyer has not authorised the transaction, he/she can chargeback the transaction. What normally happens is Paypal will honour the seller protection and the bonafide buyer will be refunded.