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 payment recipient, we may reimburse you an amount for reversals made against you based on the following reasons:

  1. A 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); or
  2. A reversal arising from a chargeback or PayPal Buyer Protection claim was issued against you for the reason of “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 under that policy may arise. 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.

Please also read the section on <reversals> in the user agreement to understand the risk of reversals (such as those arising from chargebacks and Paypal Buyer Protection claims) arising when you receive a payment.


2 Availability of PayPal seller protection

PayPal seller protection is available to:

payment recipients with registered PayPal account(s) 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?

Subject to the rest of these terms and the user agreement:

a. PayPal will pay you the full amount of an eligible payment which is the subject of the reversal and waive the Chargeback Fee, if applicable; and

b. There is no limit on the number of payments for which you can receive re-imbursement under PayPal Seller Protection.


4 What happens when there is a reversal?

PayPal may place a temporary hold on the funds in your PayPal account to cover the full payment amount that is the subject of the 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?

PayPal will reverse the funds from your PayPal account to cover the amount PayPal paid back 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?

You must meet all of these requirements to be covered:

  1. The transaction is not ineligible under section 10.
  2. The transaction must be marked by PayPal as eligible or partially eligible for PayPal seller protection on your Account “Transaction Details” page. If it is marked eligible, protection for both Unauthorised Payments and Item Not Received will apply. If it is marked partially eligible, protection for only 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 payment recipient 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 programme.

You may access the “Transactions Details” page by logging into your PayPal Account, selecting “History” and then selecting “Details” for the transaction.

  1. Follow the delivery requirements described below.
  2. Accept only a single payment from one PayPal Account for the purchase.
  3. Respond to PayPal’s requests for documentation and other information that is reasonably required by PayPal to investigate the matter in a timely manner.
  4. Your primary residence, as listed in your PayPal Account, is in [the Relevant Country].
  5. Your eligibility is not otherwise suspended.


7 What are the delivery requirements?


Protection for Unauthorised Payment

Protection for Item Not Received

Postage requirements

For services and intangible items (in countries where such transactions are eligible for PayPal seller protection): Proof of Delivery


For all other transactions: Proof of Postage (minimum) or Proof of Delivery

Proof of Delivery


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 items and services means any compelling evidence (as determined by PayPal) to show the sale was fulfilled, including but not limited to the following information:

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


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

  1. For:
    1. payment recipients with their registered address outside the UK: digital goods and licences for digital content.
    2. payment recipients with their registered address in the UK: intangible items (including digital goods and licences for digital content) and services.
      Where PayPal in its own discretion may make certain intangible items (including digital goods and licences 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 (except for items for which you received payment through the PayPal Location Based Payments Functionality).
  3. Transactions processed otherwise than through the buyer’s PayPal account. For example, if the payment was received as a direct card payment (including through Zong, Website Payment Pro, Virtual Terminal and PayPal Here) or as a PayPal guest checkout transaction, then it is not eligible for coverage.
  4. Reversals for Significantly Not as Described and/ or claims filed directly with marketplaces.
  5. PayPal Business Payments.
  6. Payments made in respect of gold (whether in physical form or in exchange-traded form).
  7. PayPal Mass Payment transactions