PayPal Policy on the Seller Protection Program

NFTs and Crypto | March 2022 Updates

by contentwriter
PayPal March 2022 updates

Mac Croxby


PayPal is one of the most convenient payment options nowadays and unlike other e-wallets, you can use it to transact for NFTs and cryptocurrencies.

In this article, we discuss some important updates on the policy of PayPal that will impact users dealing with non-fungible tokens and cryptos.


Selling NFTs? Check this out

If you are transacting as a seller of NFTs or Non-Fungible tokens, this is one thing you should not miss.

Among other updates, PayPal no longer treats NFTs with a value of $10,000 USD as eligible for the Seller Protection program.

This means that if you are selling something around that price, then better give a discounted price of $9,999 USD.

Of course it’s fine to sell an NFT for a higher price but this puts you at risk of fraud.

Scammers can take advantage of sellers by intentionally overpaying and requesting for the “overpayment” back.

The Seller Protection program protects you from chargebacks, reversals, and other fees.


This policy update took effect on March 21, 2022 and is available on the PayPal website.

PayPal earlier provided a notice of amendment to the United States PayPal agreement on February 11, 2022.


Cryptocurrencies? More fees.

Whether you are a buyer or a seller of cryptocurrencies, you may be concerned if a certain profit margin is important to you.

PayPal provided a new table of fees for crypto transactions.

These are the corresponding PayPal fees for range of purchase or sale amount:

  • 0.49 USD for every 1.00 – 4.99 USD
  • 0.99 USD for every 5.00 – 24.99 USD
  • 1.99 USD for every 25.00 – 74.99 USD
  • 2.49 USD for every 75.00 – 200.00 USD
  • 1.80% for every 200.01 – 1,000.00 USD
  • 1.59% for every 1,000.01 USD and above

Take note that such transactions will also include a conversion spread or margin, from which PayPal makes a profit.

This also took into effect on March 21, 2022.


Other updates

More details included in the policy update are of business concerns.


The first one is that PayPal now reserves its right to debiting a business’ PayPal account if it becomes suspended for the Seller Protection program.

What happens is that if a business has transactions going back 30 days when it is still eligible for the program, those funds may be reversed or charged back if the circumstances call for it.

Second, PayPal makes it harder to participate in a Restricted Activity. The terms of the restricted activities and dispute fee have been updated.

The last one is business-friendly, as PayPal can now reach business accounts through email or other written means instead of just the Policy Updates page.

Always check the policy of PayPal and avoid shady transactions.

All of these also took into effect March 21, 2022.


End of March updates

There is one other update that will take effect on the last day of March 2022, and it’s about payments made through American Express.

There will now be less percentage fee, and a fixed fee for transaction rates that are applicable.


In addition, there will be a little bit more fee that is percentage-based for certain international transactions.

The updated fees will be reflected on the Merchant Fees page.


What do I need to do based on the new PayPal policy updates?

If the updates concern you, you should review how it affects you or your business.

If you are not amenable to the changes, PayPal advises that you close your account.

You can head over to PayPal’s website to see more details:

Stay tuned and we will keep you updated on the latest announcements from PayPal.



PayPal is a versatile payment system for everyone, whether as individual consumers or  businesses.

Don’t forget to always be updated with policy revisions since they may affect the fees you send or receive.


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