What is purchase protection for buyers and how does it work?

When an individual makes an online purchase, they may wonder what could go wrong. For example, what if the item is never delivered or arrives damaged? That’s where buyer protection comes into play.

This article includes tips, suggestions and general information. We recommend that you always do your own research and consider getting independent tax, financial and legal advice before making any important decision.

Buyer protection is designed to be a safety net for buyers, potentially shielding them from financial losses in cases like non-delivery or product defects.

Types of purchase protection

In the UK, financial providers may offer purchase protection. The Consumer Rights Act may also provide protections, such as the right to receive refunds under certain conditions.

In this guide, learn the basics of buyer protection — including what it is, how it can work, and what may be covered.

Buyer protection

PayPal Buyer Protection¹ may entitle individuals to reimbursement for the full purchase price of an eligible item plus the original shipping costs. It covers eligible purchases where PayPal is used, as well as payments made through PayPal’s website.

Finding out if purchases are covered

To determine if a purchase is protected, buyers can take the following steps:

• Check payment provider's policies: Review the terms and conditions of the payment provider. These platforms often offer purchase protection and provide detailed information on the coverage and eligibility criteria on their websites.
• Review seller policies: Many reputable online retailers have their own protection policies, including return and refund policies.
• Transaction details: Some transactions may explicitly mention whether purchase protection is included.
• Contact customer support: When in doubt, don't hesitate to contact the customer support teams of both the payment provider and the seller.

For PayPal Buyer Protection, they require, among other things, that PayPal accounts be kept in good standing and ask that a dispute is filed accordingly. Terms and Conditions apply.

What is covered under buyer protection

Purchase protection coverage varies from one provider to another. However, buyers may typically be covered if:

• Goods don't arrive: When ordered items never arrive, leaving buyers empty-handed.
• Incorrect charges: If someone is billed for an item different from what they purchased.
• Item arrives not as expected: When the received item doesn't match its description or arrives damaged.

Here are some examples of when buyer protection may apply:

• A buyer purchased a plate but received a bowl.
• Someone bought a new item but was sent something used.
• Someone purchased a pack of four items, but only two arrived.
• Item was damaged in transit.
• Product that arrived was not as described by the seller.

Do individuals need buyer protection for purchases?

Buyer protection is not necessarily required for purchases; however many financial providers offer the benefit. Though coverage varies by provider, common scenarios include non-delivery, product damage, and other discrepancies. Review a payment provider's policies to make informed decisions and secure transactions.