PayPal Seller Protection Policy


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PayPal Seller Protection Policy

Effective date: December 11th, 2019

These are the terms of a contract between you and PayPal (Europe) S.à r.l et Cie, S.C.A., 22-24 Boulevard Royal, L-2449 Luxembourg (“PayPal”, “we” or “us”).

These terms apply to how PayPal Seller Protection affects you as a recipient (payment recipient) of a payment for a purchase. PayPal Seller Protection is not a payment service.

The user agreement for the country where you are registered with PayPal as resident forms part of these terms. Capitalised words which are not defined in these terms are defined in that user agreement. As much as possible, these terms and the user agreement should be interpreted as a consistent whole. Where a conflict of interpretation arises, these terms override the user agreement to the extent of the conflict.


1 What is PayPal seller protection?

If you are the recipient of a payment made by a customer ("Payment Recipient"), we will re-imburse you an amount for Claims, Chargebacks, or Reversals made against you based on the following reasons:

  1. A Chargeback or Reversal was issued against you for the reason of an “Unauthorised Payment” (except for any “Unauthorised Payment” initiated in an environment not hosted by PayPal);
  2. A Chargeback or Claim was issued against you for the reason of “Item Not Received”;

where PayPal receives from you proof that the item was posted or delivered in accordance with the requirements set forth below, subject to the further provisions of these terms (including, without limitation, the Eligibility Requirements at section 6).

Please read our PayPal Buyer Protection Policy to understand how a claim against you may arise under that policy. If you sell or market to buyers in other countries, you should read the PayPal Buyer Protection Policies of the countries in which your target buyers are based (the relevant PayPal Buyer Protection policies are available here and are also accessible via the “Legal” or “Legal Agreements” footer on most PayPal site pages) as these policies will apply to you as a Payment Recipient or seller.


2 PayPal seller protection is available to

Sellers with registered PayPal Account(s) in the Netherlands who receive PayPal payments from buyers making an eligible purchase (worldwide and everywhere PayPal is accepted). PayPal seller protection does not apply to Claims, Chargebacks and/or Reversals for the reason that the purchase was Significantly Not as Described (SNAD) nor for items that you deliver or are picked up in person.


3 How much protection is provided by PayPal seller protection?
PayPal will pay you the full amount of an eligible payment the subject of the Claim, Chargeback, or Reversal and waive the Chargeback Fee, if applicable.

  1. We may suspend your eligibility for PayPal Seller Protection if we hold a reasonable belief that there is an increased risk associated with your Account. In assessing a risk, we will consider the:
    • Total monetary amount and / or number of Claims, Chargebacks or Reversals issued against your PayPal Account;
    • Reasonable risk of your Account to the integrity of PayPal and our system; and
    • Potential losses occurring to us or our users.
  2. We may suspend your eligibility for PayPal Seller Protection if it is linked or associated with another account which has been suspended.
  3. We will lift the suspension provided we no longer hold a reasonable belief that there is an increased risk associated with your Account.


4 What happens when a buyer files a Claim, Chargeback, or Reversal?

PayPal will place a temporary hold on the funds in your Account to cover the full amount of the Claim, Chargeback, or Reversal. See the user agreement for further details about the temporary hold process.


5 What happens if the payment is not covered by PayPal Seller Protection?

If the payment is not covered by PayPal seller protection, PayPal will remove the funds from your Account and return the payment to the buyer. In addition, you will be responsible for PayPal’s Chargeback Fee, if applicable.


6 Eligibility Requirements

What are the eligibility requirements for PayPal seller protection?

If You have received more than €100,000 per month at least once over a consecutive period of 6 months on your PayPal Account and/or if you are applying surcharge for the use of PayPal (when the law applicable to you allows you to apply surcharge), you are not eligible for PayPal seller protection and section 5 applies to you unless otherwise agreed between you and PayPal. PayPal will review your eligibility for seller protection in October and April of each calendar year.

To be eligible for PayPal seller protection, you must meet all of these requirements to be covered:

  1. You must respect the requirements specified in section 2 in relation your PayPal Account.
  2. The transaction must be marked by PayPal as eligible for PayPal seller protection on your Account “Transaction Details” page. If it is marked eligible, protection for both Unauthorized Payments and Item Not Received will apply.
  3. For tangible items, post the item to the shipping address on the “Transaction Details” page. If the item is delivered in person or if the seller posts the item to a different address (for example, if the buyer asks that you send to another address on the basis that it is a “work address” or a “gift” address) then you will not be eligible for re-imbursement under the terms of the PayPal seller protection.
  4. You may access the “Transactions Details” page by logging into your PayPal Account, selecting “History” and then selecting “Details” for the transaction.
  5. You must follow the delivery requirements described below.
  6. You must accept a single payment from one PayPal Account for the purchase. (partial payment and/or payment in installments are excluded).
  7. You must respond to PayPal’s requests for documentation and other information that is reasonably required by PayPal to investigate the matter in a timely manner.


7 What are the delivery requirements?

Type of shipping

Protection for Unauthorised Payment

Protection for Item Not Received


Proof of Postage (for tangible items) or Proof of Delivery (for intangible or virtual items or services)

Proof of Delivery

If the payment is for pre-ordered or made-to-order goods, postage is required within the shipment policy or other specification on the merchant’s website.


8 What is “Proof of Postage”?

Online or physical documentation from a postal company that includes all of the following:

  1. A status of “shipped” (or equivalent) and the date of postage
  2. The recipient’s address, showing at least the city/county or postcode (or international equivalent).
  3. Official acceptance from the shipping company (for example, a postmark, a receipt, or online tracking information). Or, if you have Proof of Delivery then you do not need Proof of Postage.


9 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 or virtual items or services)” means any compelling evidence to show the purchase order was fulfilled that includes but is not limited all of the following:

  1. The date the item or service was provided;
  2. The recipient’s address (email/IP, etc.) where applicable.


10 What are examples of items/transactions/cases that are not eligible for PayPal seller protection?

  1. Licenses for digital content, and digital goods. Where PayPal in its own discretion may make certain intangible items, licenses 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.
  2. Items that you deliver (or are picked up) in person.
  3. Transactions processed otherwise than through the buyer’s PayPal account or as a PayPal guest checkout transaction. For example, if the payment was received as a direct card payment (including through Zong and Virtual Terminal (if available), then it is not eligible for coverage.
  4. Claims, Chargebacks and Reversals for Significantly Not as Described.
  5. Items bought via classified listings.
  6. Disputes filed directly with PayPal in the Resolution Centre pursuant to our user agreement.
  7. Payments made in respect of gold (whether in physical form or in exchange-traded form).
  8. PayPal Mass Payment transactions.