PayPal is quietly stripping buying and selling protections for non-fungible token-related (NFT) transactions in a partial reversal of its previous policy, according to the financial services firm's little-noticed terms-of-service update.

Under the new policy, effective May 20, NFT purchases will no longer be covered by PayPal's buyer protection policy. Additionally, NFT sales worth more than $10,000 will no longer be backed by the company’s guarantee against false claims, chargebacks or other scams that may cause sellers to lose money.

PayPal published a notice about its plans to stop providing protections for some NFT-related transactions on March 21, its website shows. But, until now, those changes have remained unreported. 

"Effective May 20, 2024: We are revising PayPal’s …