What is the PayPal Seller Protection Policy and what items aren’t covered?

PayPal Seller Protection helps protect sellers in the event a buyer lodges a claim that the payment was unauthorized, or a buyer lodges a chargeback with their card issuer claiming they did not receive the item. Unless already available in your market, for all transactions made on or after 13 April 2020, Seller Protection will be extended to intangible items such as travel, ticketing services and digital goods. With PayPal Seller Protection, you may be protected 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 PayPal integration must be up to date.
  • 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.
  • 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 PayPal’s standard transaction fees as set out in the relevant User Agreement.
Seller Protection will not apply to:
  • Claims or Chargebacks submitted on the basis the item was ‘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’s Account Optional (or Guest) Checkout, PayPal Payouts, Mass Pay, PayPal Direct Payments, Website Payments Pro or 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 Seller Protection if the Seller abuses 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, but please note that we will not update the User Agreement immediately when making this change.
 
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.