Paypal- Pay after you receive item

[pawpawdiv9]

Have you got this email from Paypal?

PayPal

Pay after delivery. You've earned it.

We've made online shopping more amazing, just for you.
Order it, open it, love it, then pay.

Here's how it works:

• Order your item, select Pay After Delivery during checkout, and we'll pay the seller on your behalf.

• In 14 days, we'll charge your bank account for the item. We'll also email you a reminder before we charge your account.


3.15 Pay After Delivery ("PAD"). The Pay After Delivery payment option allows qualifying buyers to purchase eligible items and wait up to 14 days to pay for them. The PAD payment option is only available for eligible purchases under $10,000.00 and is not available to all buyers. In order to use PAD, qualifying buyers must have a valid checking or other qualifying account at a bank which is linked to their PayPal Account and identified as their primary bank account from which funding transfers may be withdrawn; if there is no valid linked bank account then PAD will not be available, even if the qualifying buyer has used PAD before. Where a buyer and item purchased are eligible for PAD, which shall be determined in PayPal's sole discretion, buyer may choose the PAD payment option at the time of purchase. Although PayPal will not impose a fee for a buyer's use of PAD, it is possible a third party, such as the financial institution holding the primary bank account, may impose a fee in connection with the payment or purchase, in addition to the amount of the transaction.

If buyer selects PAD as the payment method:

The entire transaction amount will be funded from the buyer's primary bank account linked to buyer's PayPal Account, even if the buyer has a balance in their PayPal Account, except where there are insufficient available funds in the primary bank account. Buyer authorizes PayPal to submit the debit to buyer's primary bank account for the amount of the transaction, and resubmit it again if the initial debit is rejected or insufficient. In the event there are insufficient available funds in buyer's primary bank account, buyer authorizes PayPal to fund the remaining amount of the transaction from any of the following sources: PayPal Balance, credit card, or debit card. For each payment using PAD, buyer authorizes PayPal to debit the primary bank account for the full amount of the payment 14 Days after the transaction date, or sooner in accordance with buyer's instructions. PayPal will send buyer by email a reminder before the scheduled debit.
Where buyer has qualified for and initiated a PAD transaction, PAD will be identified as buyer's Preferred Payment Method for future eligible transactions; however, buyer may change their Preferred Payment Method at any time for future transactions. Buyer will still need to select the PAD payment option for each qualifying payment at the time of the transaction. Buyer may select a different Payment Method for future transactions and change their Payment Method at the time the buyer makes the payment.
Buyer's PayPal Purchase Protection rights described in Section 13 of the User Agreement will apply to a purchase using a PAD payment option, except a buyer using PAD must file a dispute within 45 Days from the date of the purchase. If buyer has a problem with their purchase buyer must follow the procedures described in Section 13 of the PayPal User Agreement. If buyer files a dispute within 14 Days of making the purchase with PAD, PayPal will debit the primary bank account after the resolution process is complete and only if buyer loses. Buyer authorizes PayPal to debit their primary bank account for the full amount of the payment if buyer loses a PayPal Purchase Protection claim.
PayPal has the right, at any time and in its sole discretion, to terminate, cancel, suspend or modify the PAD payment option, qualifications or eligibility for PAD, or any buyer's ability to use PAD.

[D. Bergin]

Sounds like a bad idea to me.

With Ebay's/Paypal's constant changes and return policies, might as well change their name to "Rent-A-Flipper.com".

[vintagechris]

I have it and use it from time to time. Never had any issues with it.

[vintagetoppsguy]

Originally Posted by vintagechris

I have it and use it from time to time. Never had any issues with it.

Same here.

[thecatspajamas]

Sounds like it basically amounts to a short-term interest-free loan. As long as all of the risk is on the buyer's side, I have no problem with it. It seems like the kind of thing that could rack up a bunch of fees for the user, either through accident/forgetfulness or abuse, but as long as none of that flops over on the seller, that's their problem. As a seller, I usually don't care nor am privy to how a buyer's Paypal payment is funded anyway.

Now if it turns out the seller somehow bears additional risk as a result of this that I'm not seeing, that would be different...