Paypal has successfully established itself internationally as an e-wallet and payment system over many years until today. Only for some time now, casino with PayPal started its rapid growth. The reason for this is a change in the terms and conditions of Paypal. Because in the past, the payment offered for erotic and gambling providers was not permitted in the form that it is today. Of course, this is particularly pleasing for players in online casinos.
While paying with Paypal has become much safer for end customers in recent years, it still carries certain risks for providers such as casinos. This is just one of the reasons why casino players usually cannot fall back on the Paypal buyer protection (exceptions are explained). This buyer protection always takes effect when players want to have an online casino Paypal payment reversed. But first, the question must be clarified, what actually is the buyer protection, which allows money from Paypal payments to be booked back or refunded.
THE CLASSIC PAYPAL BUYER PROTECTION BRIEFLY EXPLAINED
The simple Paypal Buyer Protection is comparable to a kind of insurance and applies to all items that are physically purchased. The buyer protection takes effect if an article does not arrive at the buyer, is delivered only partially or even defective, or does not correspond to the description. The next step would be to notify Paypal and ask for a review of the case. As a rule, an attempt is then made with the seller of the item to find an amicable agreement for both sides. If the incident cannot be settled with the seller and the buyer protection request is justified, the purchase price and shipping will be refunded by Paypal. Not every complained item is eligible for a refund. This includes any type of voucher, self-collected items, motorized vehicles, industrial machinery, or general items that violate the Paypal TOS.
Physical buyer protection for items is therefore not at all eligible for online casinos to book back an online casino payment. For virtual items, the whole thing looks a little different – as will now be explained.
For a short time, Paypal also offers classic buyer protection for digital goods. Digital goods or virtual items are goods that are not physically tangible. The buyer protection for virtual items always takes effect if the item is not as described or the buyer cannot access it. Then, as with physical items, a review of the matter can be initiated. Buyer protection for digital goods allows much more room for maneuver for sellers than it does for physical goods.
Not being satisfied with the features of online software or not finding promised features are two things. In the first case, the buyer can only complain about the software under difficult conditions, if at all. In the second case, buyer protection would be given since functions were promised, which were not present in the on-line software. A seller of virtual items is therefore well advised to describe his items sufficiently, if necessary in detail, in order to limit the grounds for complaint.
WHEN GAME CREDITS ARE PURCHASED IN THE ONLINE CASINO, ARE THEY VIRTUAL ITEMS?
First of all, it must be explained that casino software or access to the Internet casino is basically free. So, money is deposited only for playing real money games and not for downloading software or membership. Accordingly, the money is deposited only for gambling activities. According to Paypal’s Buyer Protection Policy, wagering and other gambling activities may or may not qualify for Buyer Protection on digital goods. Paypal usually handles things in such a way that in the case of gambling activities, the facts must be examined individually. This check is carried out under very strict and separate conditions. A chargeback or refund of deposits of the buyers is granted only in the fewest cases. Particularly frequent points of contention between players and casinos are bonuses and promotions offered that are directly related to the initial deposit.
EXCEPTIONAL CASES – POSITIVE FOR THE BUYER
- Defective general terms and conditions
- Promises of bonus on deposit (lies)
- Bad bonus conditions
- Business documents not translated into German
- Game crashes not due to the buyer’s Internet connection
- Accessibility of games and content after deposit not ensured
- Poor security
- Poor data protection
- Bugs in games and software
- Proven bungling by fellow players, for example when playing poker
- Money was not booked to the player’s account, etc.
The biggest problem for the buyer or player is to prove these facts. This includes, of course, whether Paypal rejects the justification as insufficient. The players are in principle in the obligation to prove and have the obligation to deal with the buyer protection guidelines before a deposit. If the player has not done this, Paypal rightly rejects the buyer protection. In that case, there is no refund and no money can be returned. Players should therefore briefly mention in their complaint that they have read the guidelines before making a deposit.
EXCEPTIONAL CASES – POSITIVE FOR THE SELLER (CASINOS)
- Buyer violates the terms and conditions, bonus and turnover conditions or gaming guidelines
- Bonus and turnover conditions were not read through sufficiently
- Disgruntled players who have lost money
- Accusations of manipulation, if the reputation of the casino was previously impeccable
- Players from countries that are rejected by the online casino on principle (e.g. US players)
- Complaints about casino games that can be tried out for free in demo versions
- Existing game logs from the casino software
In these cases, the online casino has the e-wallet Paypal with buyer protection on its side. There is then of course no compensation under the buyer protection or chargeback of the deposited funds. From the perspective of the online casino, it is therefore particularly important to provide proper business documents and ensure smooth business operations. Only in this way do the operators have a real handle against the complaints of the players.
AN ONLINE CASINO IS BANKRUPT AND GAMING OPERATIONS ARE SUSPENDED. WHAT HAPPENS?
It happens with online casinos not infrequently that they are only briefly on the market and disappear after some time. If a player has previously deposited money with Paypal, there is of course a right to get this money or the remaining amount back. First and foremost, however, players must then contact the provider and, if necessary, also legally assert their claims via a lawyer. Some online casinos have deposit insurance, so claiming player funds is not a problem. However, if the operators have knowingly accepted money despite imminent bankruptcy and simply “appropriated” it in the end, this is a criminal offense. Paypal will not let the deposited money be booked back but if necessary the buyer protection will take effect in this case. The best thing to do is to call Paypal customer service and ask for advice.
In online casinos deposited money via Paypal can not be simply reversed, as players may know from Paypal bank debits. Also, the normal buyer protection for virtual items takes effect in incidents with online casinos only in certain exceptional cases. If there are still problems in the game operation, it is advisable as a player to open a case to claim virtual items (goods). Paypal then uses the case description to check exactly whether the requirements for buyer protection are met.