PayPal Seller Protection

PayPal Seller Protection for Sellers in Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam

Last Update: July 31, 2020

What is PayPal Seller Protection?

The PayPal Seller Protection is protection we provide to sellers in Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam from claims, chargebacks or reversals that are based on:

Unauthorized Transaction; or
Item Not Received.

PayPal Seller Protection is available for eligible payments from PayPal account holding buyers in any country. 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) as these policies will apply to you as a payment recipient or seller.

How much protection is provided by PayPal Seller Protection?

PayPal will pay you the full amount of the eligible payment and waive the chargeback fees paid (for debit and credit card-funded transactions) if applicable.

Eligibility for PayPal Seller Protection

You must meet all of these requirements to be eligible for PayPal Seller Protection as well as any applicable additional requirements:

You receive payment via PayPal from a PayPal account (partial payment and/or payment in installments are excluded);
The item must be a tangible item except for items subject to the Intangible Goods Additional Requirements.
For intangible items, you must comply with the Intangible Goods Additional Requirements.
You must ship the item to the shipping address on the transaction details page in your PayPal account for the transaction. If you originally ship the item to the recipient's shipping address on the transaction details page but the item is later redirected to a different address, you will not be eligible for PayPal Seller Protection. We therefore recommend not using a shipping service that is arranged by the buyer, so that you will be able to provide valid proof of shipping and delivery;
You must respond to PayPal's requests for documentation and other information in a timely manner as requested in our email correspondence with you or in our correspondence with you through the Resolution Centre. If you do not respond to PayPal's request for documentation and other information in the time requested, you may not be eligible for Seller Protection.
If the sale involves pre-ordered or made-to-order goods, you must ship within the timeframe you specified in the listing. Otherwise, it is recommended that you ship all items within 7 days after receipt of payment.
You must provide us with proof of shipment or proof of delivery as described below;
The payment must be marked “eligible” or “partially eligible” in the case of Unauthorized Transaction claims, or “eligible” in the case of Item Not Received claims, for PayPal's Seller Protection on the transaction details page.
Your eligibility is not otherwise suspended.

Intangible Goods additional requirements

For the sale of intangible goods and services to be eligible for Seller Protection, the sale must meet the basic requirements and the following additional requirements:

Integration requirements:

Where you have integrated a PayPal checkout product, you must be using the current version of that product if you are accepting payments directly via a website or mobile optimized website; or
Ensure you are passing session information to PayPal at checkout if you are integrated with PayPal via a third-party or if you have a native app integration.
Other integration requirements may apply depending on your business model. We will let you know those requirements ahead of time, if needed.

You have delivered the item and provided proof of shipment or delivery for Intangible Goods.
Provide signature confirmation when the full amount of the payment (including shipping and taxes) exceeds the amount (based on the currency of the payment) listed in the signature confirmation threshold table. If the full amount of the payment (including shipping and taxes) is in a currency not listed in the table, then signature confirmation is required when the payment exceeds the equivalent of $750 USD at the PayPal exchange rate that applies at the time the transaction is processed.
For the sale of digital goods or licenses for digital content to be eligible for Seller Protection, you have paid standard transaction fees on the sale.

Establishing proof of delivery or proof of shipment for sellers in Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam

Physical Goods

The following is required as proof of shipment or delivery for physical goods:

Proof of shipment

Proof of delivery

Online or physical documentation from a shipping company that includes:

Date of shipment
An address for the recipient that matches the shipping address on the transaction details page; or
An address for the recipient showing at least the city, country, or postal zip code (or international equivalent).

Online or physical documentation from a shipping company that includes:

The date of delivery and/or "delivered" status of the item or service.

An address for the recipient showing at least the city, country, or postal zip code (or international equivalent).
The recipient's address (email/IP) where applicable.
Signature confirmation when the full amount of the payment (including shipping and taxes exceeds) the fixed amount (based on the currency of the payment) listed in the signature confirmation threshold table. Signature confirmation is online documentation, viewable at the shipping company's website, indicating that the item was signed for.

IMPORTANT: Your choice of carrier and shipment options with that carrier can have a big impact on your ability to meet the proof of delivery requirements. Please ensure, especially when shipping goods internationally, that your carrier can provide ‘delivered' status at the correct address, or your Seller Protection claim may be denied.

Intangible Goods

The following is required as proof of shipment or delivery for intangible goods:

For intangible or digital goods, proof of shipment or delivery means compelling evidence to show the item was delivered or the purchase order was fulfilled. Compelling evidence could include a system of record showing the date the item was sent and that it was either:

Electronically sent to the recipient, including the recipient’s address (email, IP, etc.), where applicable; or
Received or accessed by the recipient

Signature confirmation currency thresholds

Currency*	Amount	Currency*	Amount
Australian Dollar	$850 AUD	New Zealand Dollar	$950 NZD
Brazilian Real	$1750 BRL	Norwegian Krone	4,600 NOK
Canadian Dollar	$850 CAD	Philippine Peso	34,000 PHP
Czech Republic Koruna	15,000 CZK	Polish New Zloty	2,300 PLN
Danish Krone	4,100 DKK	Russian Ruble	27,000 RUB
Euro	€550 EUR	Singaporean Dollar	$950 SGD
Hong Kong Dollar	$6,000 HKD	Swedish Krona	4,950 SEK
Hungarian Forint	170,000 HUF	Swiss Franc	700 CHF
Israeli Shekel	2,700 ILS	Taiwan New Dollar	23,000 TWD
Japanese Yen	¥77,000 JPY	Thai Baht	24,500 THB
Malaysian Ringgit	2,500 MYR	U.K. Pound Sterling	£450 GBP
Mexican Peso	$10,000 MXN	U.S. Dollar	$750 USD

PayPal Seller Protection Process

PayPal will place a temporary hold on the funds in your account to cover the full amount of the claim, chargeback or reversal. We will ask you to provide proof of shipment or proof of delivery and any other information we need to determine whether the transaction meets the eligibility requirements for PayPal Seller Protection.

We will use our reasonable discretion to determine whether a transaction meets the PayPal Seller Protection eligibility requirements. If it does, we will lift the temporary hold and restore the funds to your account.

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.

Suspension of Eligibility for PayPal Seller Protection

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.

We may suspend your eligibility for PayPal Seller Protection if it is linked or associated with another account which has been suspended.

We will lift the suspension provided we no longer hold a reasonable belief that there is an increased risk associated with your account.

If we reasonably believe a risk still exists, we may in our sole discretion, require you to take certain action in order to lift the suspension of your eligibility for PayPal Seller Protection. You must follow our directions as reasonably required by PayPal within the timeframe specified.

We will notify you by email if we suspend or lift the suspension of your eligibility for PayPal Seller Protection.

Examples of Items/transactions not eligible for PayPal Seller Protection

Vehicles, including motorcycles, caravans, aircrafts and boats.
Claims or chargebacks for items that are Significantly Not as Described.
Items that you deliver in person, including at a point of sale.
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.
The item is not shipped to the recipient address.
Payments made in respect of gold (whether in physical form or in exchange-traded form)
Cash and items equivalent to cash (including, without limitation, gift cards or vouchers)
Donations
Financial Products or investments of any kind

Exclusions from PayPal Seller Protection

If we reasonably determine, having considered all relevant circumstances, that you have abused the PayPal Seller Protection Policy, we may at our sole discretion, exclude you from the PayPal Seller Protection Policy or take any other actions pursuant to this Agreement. We will notify you if you are excluded.

If you receive payment under PayPal Seller Protection which you are not entitled or eligible to receive, the payments are repayable immediately by you and may be recovered as a debt due and payable to PayPal.