What is PayPal Seller Protection?

PayPal Seller Protection covers you in the event of claims, chargebacks, or reversals that are a result of unauthorized purchases or items your buyer didn’t receive. Previously Seller Protection applied to physical goods and intangible items such as travel, ticketing, services and will be expanded to digital goods for eligible transactions made on or after April 13th, 2020. With PayPal Seller Protection, you may be covered for the full amount of all eligible transactions.

Below are some of the main requirements you need to meet to benefit from Seller Protection:
 

  • The transaction must be marked as eligible or partially eligible for Seller Protection on your Account Transaction Details page.
  • Your account must be in good standing.
  • You must respond to our requests for documentation and other information within the required timeframe.
 
For physical goods:
  • You must ship the item to the address on the Transaction Details page.
  • You must provide proof of shipment, proof of delivery, or signed delivery confirmation where applicable.
For intangible or digital goods:
  • You must provide provide compelling evidence that the intangible item or digital good was delivered or provided as described, or that the service was completed as described. Compelling evidence can include any evidence available to prove that your buyer received the goods or services or benefited from the transaction.
 
For digital goods:
  • You must comply with any terms and conditions that apply to the purchase.
  • You must comply with all technical integration requirements that were specifically notified to you by PayPal.
  • You must have paid the standard transaction fee.
Seller Protection will not apply to:
  • Claims or Chargebacks for reason of ‘Significantly Not as Described’
  • Items that you deliver in person, including at a retail point of sale
  • Items equivalent to cash, including but not limited to gift cards
  • Donations
  • Financial products or investments of any kind
  • A payment sent using PayPal’s friends and family functionality
  • A payment made using PayPal Payouts, Mass Pay, PayPal Direct Payments, Virtual Terminal Payments, PayPal Business Payments and PayPal Here
  • For shipped items, any item that is not shipped to the recipient's shipping address on the Transaction Details Page. We recommend that you do not use a shipping service arranged by the buyer, so that you will be able to provide valid proof of shipping and delivery.
There are no limits or caps associated with Seller Protection. However, PayPal reserves the right to withdraw or to suspend your eligibility for Seller Protection when abusing the privileges offered. In the event of withdrawing Seller Protection, PayPal will communicate the same before taking any action.
 
For full eligibility requirements, see the full Seller Protection Policy terms in the PayPal User Agreement.
 
Depending on when you view the User Agreement it may still indicate that intangible items, services and digital goods are ineligible which will no longer be correct, however all other exclusions will remain in effect.