How does PayPal Seller Protection work?

If a buyer files a claim, chargeback or reversal against you, PayPal will place a temporary hold on the funds in your PayPal account. This is done to ensure that you are aware of this and there are sufficient funds available to cover the full amount of the claim, chargeback or reversal. You should log in to your PayPal account and submit the necessary documents via the Resolution Centre.

We need the following documents from you as proof of shipment:

  • For an unauthorised transaction, proof of shipment is required. 
  • For items not received, proof of shipment or proof of delivery is required.

We'll review and determine whether the transaction meets the eligibility requirements for Seller Protection. If it does, we will lift the temporary hold on the funds and restore the funds to your account. Otherwise, the funds will be returned to the buyer’s account and a chargeback fee may apply.