PayPal, one of the most popular online payment systems, has recently made some changes to its legal agreements. The changes aim to better protect users against fraud and unauthorized transactions, as well as to streamline the dispute resolution process.

Here are some of the key changes that users should be aware of:

1. Mandatory binding arbitration

Starting in July 2019, PayPal will require users to settle any disputes through mandatory binding arbitration, rather than through the courts. This means that if you have a dispute with PayPal, you won`t be able to take legal action against them – instead, you`ll have to go through an arbitration process.

While some users might prefer the court system, PayPal argues that arbitration is faster, less expensive, and more efficient than going to court. However, users who want to opt out of the mandatory arbitration clause can do so within 30 days of accepting the updated agreement.

2. Changes to unauthorized transactions

PayPal has also made some changes to how it handles unauthorized transactions. Under the new agreement, PayPal will automatically assume that any transaction made from your account was authorized by you, unless you can prove otherwise.

To avoid unauthorized transactions, PayPal now offers two-factor authentication, which requires you to enter a code sent to your phone in addition to your password to access your account. You can also set up notifications to alert you when your account is used for transactions.

3. Seller protection improvements

PayPal has also made improvements to seller protection, which covers eligible transactions if the buyer claims the item was not received or significantly different than described. The new agreement clarifies that physical goods sold on eBay that are picked up by the buyer in person are no longer eligible for seller protection.

Additionally, PayPal will automatically refund the cost of return shipping to buyers who receive significantly not as described items. This means that sellers won`t have to worry about paying for return shipping costs if a buyer claims the item wasn`t as described.

In conclusion, the changes to PayPal`s legal agreement aim to provide better protection for users against fraud and unauthorized transactions. While some users might be hesitant about the mandatory arbitration clause, the changes overall are designed to streamline the dispute resolution process and improve seller protection. If you`re a PayPal user, it`s a good idea to review the updated agreement to ensure you`re aware of the changes and how they might affect you.