PayPal is extending its seller protection to cover eligible payments for intangible items such as travel, tickets, events, and services (except for Digital Goods). This means Seller Protection now applies to sellers of these services to protect them against unauthorized use and item not received chargebacks. Seller protection is already available for tangible items.

Starting with transactions made on or after June 25, 2016, PayPal will also protect sellers selling intangible items & services for:

  • Unauthorized Issues
  • Chargebacks for INR issues

This new protection will allow sellers to accept more transactions with greater confidence. They will be eligible for a full reimbursement on the above issues when they provide compelling evidence to show that the transaction has been fulfilled.

These changes are fuelled by PayPal’s focus to improve seller experience and provide best in class privileges for our sellers.

Q1: What is Seller Protection?

Seller Protection covers sellers against transactions that may go wrong on account of unauthorized issues or item not received scenarios.

For example, If a website developer has developed a website for one of his clients and the client files a chargeback stating he has not received the services even after the services have been provided, PayPal will notify the seller via email and the PayPal Resolution Center. All the seller needs to do is respond on the Resolution Center with compelling evidence such as the proof that the client downloaded or accessed the code or website developed by the seller, the time at which such access happened and any other information that we ask for specific to the case. PayPal will contest the chargeback on the seller’s behalf and protect the seller from the outcome of the issuer’s decision.

Q2: How are we changing Seller Protection to cover intangible items?

PayPal already offers seller protection for physical goods shipped by sellers to their customer. With these changes, we are extending seller protection to merchants from select industry segments offering certain services.

Q3: What is in scope for expanded seller protection?

Eligible categories of intangible goods such as travel tickets, tickets for an event, online education & tutorial services, consulting services, software development and other digital services will be covered under the expanded Seller Protection. However, Digital Goods will not be covered under the Seller Protection Policy.

Q4. Are there specific payment modes covered under the Seller Protection policy?

Most payment modes including ‘Email Payments’ & ‘Mass Pay’ are covered under our Seller Protection policy.

Q5. What specific type of issues are eligible?

  • Unauthorized Chargebacks or ACH returns
  • Unauthorized Claims
  • Unauthorized Fraud Reversals
  • Item Not Received Chargebacks

Refer to the User Agreement for more details.

Q6: From when is this extension effective?

All transactions made on or after June 25, 2016 will be eligible for the expanded protection.

Q7: Who will benefit from the changes?

The extended protection applies to all eligible sellers in India in the intangible segment. The intangibles transactions must be marked by PayPal as eligible or partially eligible for PayPal Seller Protection on your PayPal Account’s ‘Transaction Details’ Page.

Q8: What items will still not be covered?

Most goods and services paid for in a single payment via a PayPal account are eligible for seller protection, except for list below:

  • Vehicles, including motorcycles, caravans, aircrafts and boats
  • Claims or Chargebacks for ‘Significantly Not as Described'
  • Items that you deliver in person, including at a point of sale
  • Digital Goods
  • PayPal Direct Payments (including Virtual Terminal Payments, Website Payments Pro/Plus payments), PayPal Here payments and PayPal carrier billing products
  • Items that are sent after PayPal has advised the Seller not to release the item

Q9: If someone discovers a problem after June 25, 2016 regarding an intangible purchase before that date, can they make a claim?

No. The policy comes into effect on June 25, 2016, and only covers transactions that are initiated on or after June 25, 2016.

Q10: What do sellers need to do to avail Seller Protection?

Sellers in India are not required to do anything additional to be eligible for the expanded policy. Specific transactions eligible for Seller Protection will be identified as ‘Eligible’ on the Transaction Details page of the seller’s PayPal account. The seller will have to respond to all Unauthorized cases as well as Item not received chargebacks with compelling evidence that the seller fulfilled the transaction or in case of ‘Item Not Received’ chargebacks, the buyer benefitted from the transaction. The Seller will have to respond within the timeframe mentioned in the Case Notifications received by him to be eligible for protection.

Q11: How does the seller have to support the claim?

Seller must submit all proofs or documents that he has available to represent his case on PayPal Resolution Center. The evidence should be uploaded in the “Other Evidence” section.

Q12: What kind of proofs can the seller submit?

Any compelling evidence that the seller can provide which can prove to the buyer and/or PayPal that an item was delivered, used, or, provided or that a service was completed, would qualify as valid proof. For example: for an online ticket purchased, proof that the ticket was sent to the purchaser’s email address.

Q13: How does the claim process for seller protection work?

  1. If a buyer files a claim, chargeback or payment reversal for unauthorized transaction or a chargeback for item not received, we’ll place a temporary hold on your funds.
  2. You will have to log in to your PayPal account and look under your ‘Transaction History’ to check the eligibility status for Seller Protection.
  3. For Eligible transactions, we’ll ask you to provide valid proofs/information that confirms that you delivered the service to the buyer and investigate the matter.
  4. You will receive the money once we have ascertained that your proofs are valid.

Q14: Under what circumstances can PayPal withdraw Seller Protection for a particular seller or a class of sellers?

PayPal reserves the right to withdraw Seller Protection if the seller abuses the privileges offered or excessive claims are made or is deemed fraudulent. In the event of withdrawing Seller Protection, PayPal will communicate the same before taking any action.