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

PayPal Seller Protection can cover you in the event of claims, chargebacks, or reversals that are a result of unauthorized purchases or items your buyer didn’t receive. For all eligible transactions made on or after April 13th, 2020, Seller Protection will be extended to intangible items such as travel, ticketing, services and digital goods. With PayPal Seller Protection, you may be covered for the full amount of all eligible transactions.
This page applies for accounts based in United Kingdom, Germany, Austria, Switzerland
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 account must be in good standing;
  • You must respond to our requests for documentation and other information within the timeframe communicated to you by PayPal.
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 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 you have established 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 standard transaction fees on the transaction.
  • PayPal reserves the right to ask for additional integration requirements. These requirements are listed below:
    • Where you have integrated a PayPal checkout product and are accepting payments directly via a website or mobile optimized website, you must ensure you are using a current version of that product.
    • Where you are integrated with PayPal via a third-party, you must ensure you are passing session information to PayPal at checkout. Other integration requirements may apply depending on your business model. 
    • Visit https://developer.paypal.com for more information.
Seller Protection will not apply to:
  • Claims or Chargebacks for reason of ‘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 Payouts, Mass Pay, PayPal Direct Payments, Virtual Terminal Payments, PayPal Business Payments or 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 or to suspend your eligibility for Seller Protection if PayPal determines in its reasonable opinion that you are abusing the Seller Protection Policy. PayPal will notify you of its intention to withdrawing Seller Protection before doing so.. 
For full eligibility requirements, see the full Seller Protection Policy terms in the PayPal User Agreement.
The Seller Protection Policy will be updated to reflect the above mentioned changes later this year. Before this date, older versions of the Seller Protection Policy may still indicate that intangible items, services and digital goods are ineligible, which will no longer be correct. All other exclusions remain in effect.