PayPal - physical vs non-physical products, conflict with PayPal staff, money put on hold

[PatrickRQ]

We recently experience issue with PayPal who started putting our money on hold until we enter tracking code for shipping for selected transactions.

Case is that we configured the Commence product as non-physical but somehow, buyers are still able to provide shipping address what results in the issue we experience - PayPal detects the transactions differently.

I wonder if this is some sort of issue in IPS implementation of PayPal?

Edited April 29, 2022 by PatrickRQ

[Marc]

There is nothing specific, other than the requirement for an address if it's a recurring item. If it is, then an address is actually required by the paypal API. Have you contacted paypal on this to let them know these are not physical items?

[PatrickRQ]

Quote

if it's a recurring item.

We have option of PayPal subscription disabled to do not charge clients automatically. We experienced many complaints and chargebacks because (even we had right to according to agreement) of collected payments. So commerce generates invoices each time renewal is about to come and send it to client to pay.

PayPal said there is shipping address provided for transaction so they detect it as physical item that actually must be shipped.

Edited April 29, 2022 by PatrickRQ

[Marc]

You can remove the need for a user to enter an address at all in this case. You could do this from the checkout tab in Commerce->Payments->Settings . I will however mark this for our developers to review, in case they have anything to add

[PatrickRQ]

It will work against shipping address only? As Billing address for virtual items is required by law.

[Marc]

Just now, PatrickRQ said:

It will work against shipping address only? As Billing address for virtual items is required by law.

It wouldnt. It would remove the need to add one at all. I have flagged this for our developers as mentioned, so they can review. In the meantime, do you have an example transaction number?

[PatrickRQ]

This is my setting: https://ibb.co/gZcGyTM

And all Commence products "Physical" field is set to OFF.

Then after transaction, when we enter PayPal > #SpecificTransaction > Details, we can see "Ready to ship to" and address below.

Quote

In the meantime, do you have an example transaction number? 

Do you mean PayPal transaction number? what is actually info you are looking for that may help you getting more details?

It looks like the address filled as billing on Commerce side is used as address for shipping on PayPal's end. At least PayPal displays it like this.

Edited April 29, 2022 by PatrickRQ

[Marc]

It was simply so I could look back on your system there. From what  you have set, its more likely this is going to be a change request that is needed than a bug fix I suspect

[PatrickRQ]

Change request? Maybe not a direct bug but implementation conflict with PayPal rules and law of selected world areas. Commerce sets shipping address for non-physical items that do not require shipment and in real can't be shipped physically.

And the law requires me to have name and billing address of a buyer for taxing and VAT purposes. Now, when I have shipping address provided for virtual (downloadable) items provided I get in conflict with PayPal who wants me to ship the items.

That makes us end up in stalemate as we have now issue of getting back out money from PayPal and puts on that unfair clients may ask chargeback as items were never shipped.

Therefore, I really would like to make an urgent request to remove a need of shipping address for non physical items or make the options separate, so IPS clients may select what address to include in transaction details for non-physical items.

Edited April 29, 2022 by PatrickRQ

[Marc]

I have flagged this to our developers, as I mentioned. The reason I mention the above, is due to the setting itself. You can select you wish to ask for a billing and shipping address for non-physical items, but cannot select one or the other. So it may be that this needs to be changed.

I do need to emphasise though that I have flagged to our developers for the reason Im not sure what we can and cannot send. So there is every possibility that may be incorrect

[PatrickRQ]

Hoping to have it sorted quickly, as seems PayPal started to monitor transactions more detailed way, at least in my country and now every payment we get is put on hold 😭😱😠

Edited April 29, 2022 by PatrickRQ

[Marc]

Just now, PatrickRQ said:

Hoping to have it sorted quickly, as seems PayPal started to monitor transactions more detailed way, at least in my country and now every payment we get is put on hold.

Seem to do so a lot lately. Like to keep us on their toes 🙂