How does PayPal Seller Protection work?

If a buyer files a claim, chargeback or reversal against you, we’ll place a temporary hold on the funds in your PayPal account. This is done to ensure that you’re aware of this and there are sufficient funds available to cover the full amount of the claim, chargeback or reversal.

To resolve the case, you need to submit the necessary documents required in the Resolution Centre. We’ll also 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. A fee may apply in a chargeback case.

Learn more about Seller Protection in Australia.