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I'm a merchant selling software and providing subscriptions to some services. I use PayPal and other similar online services to receive payments.

Very often the sandbox versions of these services are glitchy. It causing me hours of pay time when the software developers and testers are bumping into problem, investigating, documenting, and communicate with the payment gateway support teams.

Currently we have a bug with PayPal that is not fixed for 2 weeks. It affects the working procedures. It is stopping us from developing and testing new features.

What can we do? Can we claim back this the employee pay time losses?

It is pretty difficult to estimate the business losses of the delaying a new service to be available to our customers.

How can we calculate the business losses? Can we claim the business losses?

Similar case: the production environment on PayPal have glitches. We are not using it in current software release, but we have a release prepared that would use it. So we are waiting for them to fix it.

How can we calculate losses and claim them?

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  • Do you have a service agreement with PayPal guaranteeing you a service level? Or are you just using the publicly available developer sandbox API as part of your development process?
    – user28517
    Nov 29, 2019 at 1:27
  • It is a public agreement like so paypal.com/us/webapps/mpp/ua/xdeveloper-full and you are right, we are paying per transaction.
    – Yevgeniy Afanasyev
    Dec 1, 2019 at 23:23

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If PayPal are in breach of their contract you can sue for damages

Economic loss is calculable and there are various methodologies for doing so. Your lawyer will probably have you engage an expert witness to do so. No doubt PayPal will have their own expert to explain to the court why your expert is FoS (and vice-versa).

However, it’s extremely unlikely that PayPal have breached their contract with you. Sandbox environments probably come with no warranty (explicit, implied or statutory) that they will be suitable for production environments.

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  • Comments are not for extended discussion; this conversation has been moved to chat.
    – Dale M ♦
    Nov 29, 2019 at 23:06

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