For years, PayPal Goods and Services has been the default payment method for buying and selling trading cards online in groups. It’s familiar, widely accepted, and — most importantly — it comes with PayPal Purchase Protection. Ask most collectors why they insist on Goods and Services and you’ll hear the same answer: “Because I’m protected.”

Recently, I have seen several stories of Paypal denying Goods and Services claims–even for items that were clearly never even shipped!  A growing number buyers and sellers of collectibles report PayPal denying Goods and Services claims, because PayPal decided the account itself was being used in a way that violated its terms. The common thread? High activity on a personal account.

So what’s really going on — and how protected are you, actually?

The TL/DR takeaway from this post is this: if you are buying and reselling frequently enough to get a 1099, open a business account with Paypal. Problem (mostly) solved. If you are running a “business” through a personal account, your Goods and Services protection is not as reliable as you might think.

For more Cardhound tips on safe buying and selling online, try this article.

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What PayPal Says Buyer Protection Covers

According to PayPal’s official Purchase Protection policy, eligible Goods and Services payments may be covered if:

• The item never arrives, or

• The item is significantly not as described

Protection applies only if the buyer opens a dispute within PayPal’s required timeframe (generally up to 180 days) and follows PayPal’s dispute process.

On the surface, this sounds straightforward — and for many users, it works exactly as expected. But PayPal’s own policy includes critical qualifiers that are easy to miss.

• PayPal states that coverage applies only to eligible transactions, and
• Paypal retains sole discretion when determining whether a claim qualifies.

That discretion becomes especially important when PayPal looks beyond a single transaction and evaluates how your account is being used overall.

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The Personal vs. Business Account Problem

PayPal’s User Agreement draws a clear line between personal and business use:

• Personal accounts are intended for everyday, non-commercial use

• Business accounts are intended for users who regularly buy and sell goods or services

While PayPal allows limited selling on personal accounts, it also states that if an account’s activity is primarily commercial, PayPal may require the user to convert to a business account — or may restrict the account altogether.

This is where many collectors get caught off guard.

Buying and selling cards regularly — even as a hobby — can begin to look like commercial activity to PayPal’s risk systems. And once an account is flagged that way, PayPal may view disputes differently.

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Why Some Goods and Services Claims Are Being Denied

In recent months, collectors have reported disputes being denied with explanations that reference:

• Account usage inconsistent with a personal account

• Transaction patterns associated with resale or commercial activity

• Elevated dispute or transaction volume

Importantly, PayPal doesn’t need to prove fraud to deny a claim. The User Agreement gives PayPal broad authority to limit protection if it believes the service is being used in a way that increases risk or violates intended use.

PayPal’s Buyer Protection policy also lists items intended for resale as potentially ineligible. While this language is often overlooked, it becomes relevant when PayPal evaluates whether a buyer is acting as a consumer — or as a reseller.

In other words: even if a single transaction looks legitimate, your account history can influence the outcome.

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Why This Matters for Card Collectors

Most collectors aren’t trying to game the system. They’re using PayPal the way the hobby has used it for years. But PayPal’s internal policies appear to be evolving, and enforcement definitely seems tighter than it was in the past.

The bottom line for personal account users is this: using Goods and Services does not automatically guarantee protection.

For high-activity buyers and sellers, this can lead to surprise denials — and in some cases, temporary account limitations or fund holds.

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How to Reduce Your Risk

• Consider a business account if you buy and sell regularly

• Use Goods and Services every time — Friends & Family offers zero protection. Goods and Services is still the best option

• Document everything (listings, messages, tracking, condition details)

• Tie Paypal to a credit card with fraud protection. This gives a second dispute option

• Open disputes promptly and respond quickly to PayPal requests

• Understand exclusions before assuming coverage applies

These steps won’t guarantee a favorable outcome, but they significantly improve your position if PayPal reviews your activity.

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Other Protection Options

You may want to explore other protection options outside of Paypal. Here are a couple ideas:

• Get an insurance policy through a collections specialist like Collectibles Insurance Services. But also–read the fine print. Just like Paypal, they have Terms of Service that must be followed for reimbursement.
• For smaller transactions consider a service like upstart Card Trade. Card Trade verifies all users and even insures transactions.

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FAQ: PayPal Goods and Services for Card Collectors

Is PayPal Goods and Services safe for buying trading cards?
Generally, yes — but protection depends on transaction eligibility and your account standing. High activity can change how PayPal views your claims.

Can PayPal deny a Goods and Services buyer protection claim?
Yes. PayPal can deny claims at its discretion, even if the buyer believes the evidence is strong.

Does PayPal Buyer Protection cover items bought for resale?
PayPal’s policy states that items intended for resale may be ineligible, which can matter if your account shows frequent buying and selling.

Should card sellers use a business PayPal account?
If you regularly buy or sell cards, a business account aligns better with PayPal’s terms and may reduce the risk of disputes being denied due to account usage.

How long do I have to open a PayPal dispute?
Most claims must be opened within 180 days of the transaction, though acting sooner is always better.

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The Bottom Line

PayPal Goods and Services still offers real protection — but it isn’t the blanket safety net many collectors assume. As PayPal increasingly evaluates account behavior, not just individual transactions, understanding the fine print matters more than ever.

For vintage card collectors, the smartest move isn’t abandoning PayPal — it’s using it with clear eyes, proper documentation, and the right account setup.