PayPal limits NFT transactions to $10,000; amends Seller Protection Program

Namrata Shukla
PayPal NFT
Source: Pixabay

The growth of any technology comes with its own set of boons and banes. The mainstream emergence of non-fungible tokens [NFTs] also proved to relay some issues that PayPal is currently taking heed to and amending the terms of its Seller Protection Program. The terms are being alterest to account for transactions of more than $10,000 involving NFTs.

An official document from PayPal noted that the revision will come into effect from 21st March. It stated,

“Revising PayPal’s Seller Protection program to expand the list of ineligible items to include certain Non-Fungible Tokens (NFTs) with a transaction amount of more than $10,000 USD.”

In its update Seller Protection Program, PayPal also highlighted the items that were deemed illegible under the said program and it included art, media, antiques, or collectibles, in physical or digital form, as represented by a Non-Fungible Token [NFT] that valued over $10,000.

It stated,

“Art, media, antiques, or collectibles, in physical or digital form, as represented by a Non-Fungible Token (NFT), with a transaction amount of more than $10,000 USD or equivalent value in local currency is calculated at the time of the transaction”.

The program aims at providing merchants using its payment service with protection against chargebacks and other disputes. The Seller Protection program kicks if a transaction is reversed because of a successful chargeback by a buyer or when a bank-funded payment is reversed by the buyer’s bank.

This update comes days after the UK authorities seized NFTs linked to an alleged case of NFT fraud of about $1.8 million. With NFTs booming and people’s interest rising, many such scams were cropping up. Many platforms have urged users to practice caution, and PayPal’s this move could be interpreted as protecting its users from the evolving digital currencies space.

PayPal has been crypto-friendly as it added the service just last year on its platform. There have been others who are willing to incorporate this technology on their platforms like Visa. PayPal and Visa have reportedly invested a sum of $300 million in Blockchain Capital Fund in September 2021.

Additionally, PayPal was now working on a native stablecoin called the PayPal coin.