PayPal Seller Protection Policy


>> View all legal agreements

PayPal Seller Protection Policy

Last Update: April 29, 2019


1. Protection against payment reversal

PayPal protects the recipient of a payment made by a customer (the "Payment Recipient") against a payment deficit resulting from:

  • A Chargeback or Reversal of payment directly related to a claim of "Unauthorised Payment", except for any Unauthorized Payment initiated in an environment not hosted by PayPal,
  • A chargeback or reversal of a payment for reason of "Item Not Received" ("INR"),

where PayPal receives from you proof that the requirements set forth in Section 6. below have been met, subject to the further provision of this PayPal Seller Protection Policy.

Please read the PayPal Buyer Protection Policy to understand how a Claim against you may arise. If you sell to buyers in other countries, you should read the PayPal Buyer Protection policies of the countries in which your targets buyers are based (the relevant PayPal Buyer Protection policies are available through the drop-down menu at as these policies will apply to you as a Payment Recipient or Seller.

2. Which payments are protected?

All PayPal payments received from buyers for an eligible item purchased with PayPal as accepted payment. Disbursements on eBay made via PayPal are not eligible.

3. How much protection is provided?

PayPal reimburses the seller for the total payment amount if the claim is related to a chargeback or reversal. PayPal shall waive any Chargeback Fee, if applicable.

a. For Claims on the reason of INR which are filed through the PayPal resolution center, there is no limit on the number of payments for which you can receive re-imbursement under the PayPal Seller Protection;

b. PayPal Seller Protection for Unauthorized Payments and for chargebacks based on the reason of INR will apply unless over the past 30 days

  • the total amount of Chargebacks, Claims (INR and/or items significantly not as described ("SNAD")), and/or reversals issued against your PayPal Account is equal to or exceeds1% of the total payment volume received


  • is equal or exceeds 100 cases of Chargebacks, Claims (INR and/or SNAD), and/or Reversals.

If you exceed the thresholds as outlined in clause 3.b. above, your eligibility for PayPal Seller Protection will be suspended for at least 90 days and payments during this period will not be covered by the PayPal Seller Protection.
After such 90 days’ period, your PayPal Account may be eligible for PayPal Seller Protection for Unauthorized Payments and INR claims only if, during a 90 days period your PayPal Account meets the following conditions:

  • The total number of Chargebacks, Claims (INR and/or SNAD), and/or reversals issued against your PayPal Account remained below 1% of the total payment volume received
  • below 300 cases of Chargebacks, Claims (INR and/or SNAD), and/or Reversals;

PayPal will notify you by e-mail if your eligibility for PayPal Seller Protection is declined based on the above requirements or if you may be eligible for PayPal Seller Protection again.

4. What happens in case of a PayPal Buyer Protection Claim for INR, SNAD, Chargeback or Reversal, or Claim for Unauthorized Payments?

PayPal will place a temporary hold on the funds received in your PayPal Account in the event a Buyer files a Claim under the PayPal Buyer Protection Policy, in case of Chargebacks or Reversals or in case of a Claim for an Unauthorized Payment. Your ability to withdraw or use the disputed funds is restricted during this time.

If PayPal decides in the Buyer’s favor, the Seller will be liable to PayPal. This includes, without limitation, where a buyer with a registered PayPal account outside of Switzerland files a claim that is covered under the applicable PayPal Buyer Protection Policy of the Buyer’s place of registration.

If the payment in question is covered by the PayPal Seller Protection Policy, PayPal will release the disputed amount and restore access. If the payment is not covered by the PayPal Seller Protection, you are liable vis-à-vis PayPal, and PayPal will deduct the funds in dispute from your PayPal account and return the payment to the buyer. In addition, you may be responsible for PayPal's Chargeback Fee, if applicable.

This process also applies to claims that a buyer files with eBay through the eBay resolution process and where eBay has notified us of the claim.

PayPal Seller Protection does not apply to Buyer Protection Claims, chargebacks or reversals outside of eBay and not to Buyer Protection Claims, chargebacks or reversals resulting either from the fact that the item is significantly not as described, or for items which are not shipped through an approved shipping method (e.g. have been picked up or delivered in person).

5. Eligibility Requirements

The PayPal Seller Protection Policy applies if you meet all of the below requirements:

  • The item sold must be a real tangible good capable of being shipped (the PayPal Seller Protection Policy does not cover cars, motorcycles, boats, aircraft, services, electronic downloads, software downloads, gift vouchers, or tickets of any sort);
  • The transaction must be marked by PayPal as eligible for PayPal Seller Protection in your PayPal Account;
  • You must ship the item to the address given on the "Transaction Details" page;
  • You must be able to provide the requisite proof, which complies with the requirements set out in Section 6. below;
  • You have received a single payment for the total amount of the sale from one registered PayPal Account for the purchase (no partial payment or payment in instalments, no down payments, no deposits);
  • You must respond within the required time to PayPal’s requests for documentation (such as proof of shipment) and other information that is reasonably required by PayPal to investigate the matter; and,
  • You must respect the requirements specified in Section 3. above in relation to your PayPal Account.

The following items/cases are not covered:

  • Digital goods and licenses for digital content,
  • Vehicles with a motor, especially automobiles, motorcycles, boats and aircrafts,
  • Items that cannot be shipped,
  • Items picked up by the Buyer,
  • Items equivalent to cash (including, without limitation, stored value items such as gift cards and pre-paid cards),
  • Payments made in respect of financial products and investments,
  • Payments made in respect of gold (whether in physical form or in exchange-traded form),
  • PayPal Mass Payments transactions.

Where PayPal in its own discretion may make certain intangible items (including digital goods and licences for digital content) and/or services eligible from time to time, unless otherwise agreed in writing with PayPal, the following will always remain ineligible:

  1. Items equivalent to cash (including, without limitation, stored value items such as gift cards and pre-paid cards).
  2. Payments made in respect of financial products and investments.
  3. Donations.
6. Delivery Requirements

What are the delivery requirements?


Protection for Unauthorised Payment

Protection for Item Not Received

Postage requirements

For services and intangible items (in countries where such transactions are eligible for PayPal seller protection): Proof of Delivery


For all other transactions: Proof of Shipping (minimum) or Proof of Delivery

Proof of Delivery

6.1 What is “Proof of Shipping”?

Proof of shipping is online or physical documentation, which fulfils the following requirements:

  • Confirmation that the item has been shipped and date of postage;
  • The recipient’s address (as given in the "Transaction Details");
  • Official acceptance by the shipping company (for example a receipt or online tracking information which enables PayPal to trace the shipping).
6.2 What is “Proof of Delivery”?

Proof of Delivery for tangible items means online documentation from a postal company that includes all of the following:

  1. A status of “delivered” (or equivalent) and the date of delivery.
  2. The recipient’s address, showing at least the city/county or postcode (or international equivalent).

Proof of Delivery for intangible items and services means any compelling evidence (as determined by PayPal) to show the sale was fulfilled, including but not limited to the following information:

  1. The date the item or service was provided;
  2. The recipient’s address (for instance, email/IP) where applicable.
7. Additional requirements in case of INR

To be covered by PayPal Seller Protection in case of INR you as the Seller must ship the item within seven calendar days of receipt of payment in your PayPal Account. This does not apply to pre-ordered or made-to-order goods where shipment is required within the timeframe specified in the eBay item listing, or, if the transaction was made outside of eBay, the shipment policy or other specification on the merchant’s website.