PayPal Protection Tips for Sellers

Although the vast majority of PayPal transactions are completed without incident, it's impossible to completely eliminate the risk of fraud or chargebacks.Sellers can do their part to stay safe by following the tips below.

Seller Tips: Decrease Fraud Risk
  • Insure your package
    Buying postal insurance for your item will protect you should your shipment get lost in the mail or if the buyer claims the package was never delivered.

  • Track your package
    Maintain proof that the buyer received your package and create a better customer experience. Promptly send the tracking number to your buyer so they can feel satisfied as they monitor its delivery progress. Use delivery confirmation as an added precaution.

  • Watch for address inconsistencies
    A shipping address that is different from the billing address is fairly common, however this could be a fraud indicator. For instance, a high-priced item that has a billing address in one country and a shipping address in another may be suspicious.

  • Beware of unusual buyer requests
    Unusual requests should put you on alert to suspicious activity. A few examples are buyers who:
    • Want a rush shipment at any cost
    • Send partial payments from different PayPal accounts
    • Do not make their payment in full

  • Check out your buyers
    • Do they have a Confirmed address?
    • What is their eBay feedback score?
    • Is their PayPal account verified?

Seller Tips: Avoid Buyer Disputes
  • Provide clear and detailed descriptions
    Let your buyer know exactly what to expect. Give a detailed description of your item and include pictures. Also make sure to state your return policy clearly in a place where your buyer will be sure to see it.

  • Respond to buyer inquiries promptly
    Let your buyer know that you are listening. Respond promptly and courteously to their questions.

  • Give realistic delivery times early on
    Give your buyers a delivery time estimate as soon as possible. It's better to overestimate delivery time than to risk disappointing them with a package that shows up late.

  • Be willing to compromise
    Offer a partial refund. Although you are losing some money, you can often stop a buyer from filing a chargeback.

  • Encourage mediation
    If a buyer threatens to file a chargeback against you, remain professional and encourage them to instead file a claim at the Resolution Center on the PayPal website. This process is faster and often less painful for both parties. PayPal's Resolution Team will arbitrate the dispute and work toward a fair resolution that satisfies both seller and buyer. And PayPal's resolution services are free of charge.


Confirmed Address What it is and why it's important?

Understanding Chargebacks What it is and how it happens

Protection for Sellers Online security, buyer disputes, and chargeback protection PayPal helps.

Security for Merchants A resource page specifically for anyone who sells online

Security Center Learn more about PayPal fraud prevention and online safety