How Seller Protection can help support your business.

Apr 10 2018 | PayPal editorial staff

As a small business owner, you want to do everything you can to protect your business, including processing customer payments smoothly. This is where choosing a payment provider with seller protection can help.
What is Seller Protection?
PayPal Seller Protection is a policy that can protect your transactions from chargebacks, reversals, and their associated fees. This means that if you sell something to a buyer, and they dispute or reverse the transaction, you may be eligible to retain the full purchase amount and avoid any related chargeback fees paid (for debit and credit card-funded transactions).

What makes PayPal Seller Protection different.
We want to make it easy for you to protect your online sales. When you open a Business account with us, we offer Seller Protection at no additional charge for eligible transactions. We also don’t limit the number of eligible payments, as long as you meet the eligibility requirements.

What PayPal Seller Protection covers.
PayPal’s Seller Protection program covers two kinds of buyer claims:
  • Unauthorized Transactions. This is when a buyer claims they didn’t authorize a payment.
  • Items Not Received. This is when a buyer claims they never received the item they purchased.

What PayPal Seller Protection doesn’t cover.
Seller Protection doesn’t cover buyer claims for items received that are ‘Significantly Not As Described (SNAD)’; in other words, what the buyer received doesn’t match what they ordered. For example: Say the buyer ordered a pink scarf but received a green one instead. But you can reduce SNAD complaints by:
  • Providing detailed and accurate descriptions of the items you are selling.
  • Communicating well with your buyers.
  • Answering any questions about the item(s) quickly.
  • Being open to resolving issues as they arise (refunds, returns, and exchanges) to prevent a formal complaint.

How to be eligible for PayPal Seller Protection.
To be eligible for PayPal Seller Protection, you must meet all of the following requirements.
  • The primary address for your PayPal account must be in the United States.
  • The item must be a physical, tangible good that can be shipped.
  • 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 Center. 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.

What happens if you receive a complaint?
If the transaction in question meets the eligibility criteria, you’ll be able to keep the full purchase amount, and we’ll also waive any chargeback fees (for debit and credit card-funded transactions).

Keep in mind that while we’re reviewing the complaint, the money for the disputed transaction might be temporarily unavailable to you. If the dispute is decided in your favor, we’ll make the money available again as part of your PayPal balance.

It also takes teamwork to find a resolution. In addition to meeting the eligibility requirements, you also need to respond to any reversal within the timeframe given. Be sure to include the appropriate proof of delivery or proof of shipment, depending on the requirements.

How to prevent complaints and reversals.
You won’t be able to prevent all reversals but you can help by providing thorough and accurate details of the items you sell, shipping quickly, and communicating well with your buyers. The little details go a long way. However, reversals are part of doing business to some degree. Always make sure you follow the PayPal Seller Protection Policy to protect yourself. Here are a few actionable tips:

To reduce (Items Not Received) INR complaints:
  • Communicate well with your buyers.
  • Be clear about shipping timeframes.
  • Ship only using reputable shipping partners who can provide online shipment tracking details.
  • Share shipping details with your buyers.

You can also access additional information about Seller Protection by reviewing our FAQs at the bottom of this page.

The contents of this site are provided for informational purposes only. You should always obtain independent, professional accounting, financial, and legal advice before making any business decision.

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Frequently asked questions.

Virtual Terminal is bundled with our customizable payment solution, PayPal Payments Pro. Virtual Terminal allows merchants to accept payments virtually anywhere they have Internet access, with no card swipe or software to install, and is ideal for merchants who receive orders by phone, fax, or face to face.

Virtual Terminal has these features and benefits:
  • Grow your business – Process payments for major credit and debit cards. Extend your reach to customers who prefer not to pay online, including customers without a PayPal account.
  • Process payments anywhere – Process payments anywhere through any device with an Internet connection and a web browser.
  • Zero setup – Virtual Terminal requires no coding or specific software installation to get started.
  • Use PayPal as a one-stop payment solution and more – Process your customers' orders through a PayPal-hosted online payment form along with a set of tools for intuitive reporting; printing shipping labels and packing slips; and printing or emailing transaction receipts.
  • Process multiple payments simultaneously – You can launch multiple Virtual Terminal instances to process payments, as in the case of a call center or during heavy demand.

Note: PayPal's Seller Protection Policy doesn't apply to transactions processed using Virtual Terminal.

Here’s how it works:
  1. Log in to Virtual Terminal. When you're ready to process a payment, go to Tools, click Get paid and then Virtual Terminal.
  2. Enter the order. Enter the order details and credit or debit card information. If you're mailing an item, include the shipping information.
  3. Complete the transaction. You'll receive a confirmation for successful transactions. You'll then have the option to print a receipt or packing slip, email the receipt to your customer, or process another payment.
  4. Get paid. Once approved, the money shows up in your PayPal account, usually within minutes. From there, transfer it to your bank account, spend it wherever PayPal is accepted, or use your PayPal Business Debit Mastercard® at the ATM or in stores. You have fast access to your PayPal account, plus the PayPal Business Debit Mastercard offers 1 percent cash back on eligible purchases (It requires enrollment. Cashback applies to signed transactions only.)

Virtual Terminal costs $30/month USD, with no setup, termination, or withdrawal fees. Per-transaction fees of 3.1 percent + $0.30 apply.

See pricing details

If you encounter any issues when signing up or processing payments, reach out to Merchant Technical Support.

See also:
What must I do to start using Virtual Terminal?
How do I enter and process transactions in Virtual Terminal?
One way to show proof is to use a carrier with online tracking. For transactions involving merchandise worth up to the coverage amount (or the equivalent in the currency of the transaction) or more, please also keep an online receipt with the recipient’s signature as proof of delivery.

Meeting the postage requirement will also help you meet your eligibility for Seller Protection. You can view the detailed postage requirements related to Seller Protection in our User Agreement.

PayPal Seller Protection covers you in the event of claims, chargebacks, or reversals that are a result of unauthorized purchases or items your buyer didn’t receive. With PayPal Seller Protection, you are covered for the full amount of all eligible transactions.

If a transaction is eligible for Seller Protection, it will be marked as eligible or partially eligible on the Transaction Details page. If it is marked as partially eligible, you are only protected for items a buyer didn’t receive.

Here are some additional requirements you need to meet for Seller Protection:

  • You must ship the item to the address on the Transaction Details page.
    • Even if the buyer sends you a request via email or an eBay message requesting shipment to an alternate address, only ship the item to the address provided in the Transaction Details.
  • Provide proof of delivery. For transactions of $750.00 or more, you need to provide signed delivery confirmation.
    • We require online tracking to confirm delivery.
  • Respond to our requests for documentation and other information in a timely manner.
    • These requests will be sent to the primary email address on your PayPal account.

Most buyers have up to 180 days to file a dispute with PayPal, although this can be different based on where your buyer is located. Please read the Purchase Protection Policy of the countries where your buyers are based, as these policies will apply to you. To learn more about PayPal’s Seller Protection Policy and Purchase Protection Policy, click Legal at the bottom of any PayPal page, and then click PayPal User Agreement.

What is the PayPal Shopping Cart?

The PayPal Shopping Cart lets customers pay for multiple items at the same time, without leaving your site. If you have a Premier or Business account, you can get the PayPal Shopping Cart as part of PayPal Payments Standard.

Can I let my employees log in to my PayPal account?

You can add employees to your Business account and control how much of your account they can access. Account privileges include things like editing your profile, viewing your account balance, and discussing your account with Customer Service.

You can create login IDs for up to 200 employees.

Here's how to add employees to your PayPal account:

  1. Click the Settings icon on the top right corner of the page.
  2. Click Account access under "Account & Security" on the left of the page.
  3. Click Update in the "Manage users" section.
  4. Click Add User.

How do I update my business contact name, Customer Service email, phone number, or website URL?

Here's how to update your business contact information:

  1. Click the Settings icon on the top right corner of the page.
  2. Click About the business under "Profile" on the left of the page.
  3. Click Update in the "Business information" section.
  4. Edit your information, then click Save.

How do I update the name of my business?

Here's how to update the name of your business:

  1. Click the Settings icon on the top right corner of the page.
  2. Click Account owner inforamtion under "Profile" on the left of the page.
  3. Click Change next to "Name."
  4. Select the reason for the name change and click Continue.

What is Instant Update API and how can it help my business?

PayPal Instant Update API makes it possible for you to show shipping methods, insurance, and taxes at the beginning of the checkout flow.

Studies show that customers are more likely to complete checkout if:

  • The checkout flow is short.
  • They have more information about transaction at the beginning of the flow.

Instant Update API calculates shipping and taxes based on what the customer actually has in their cart and their shipping address. The feature also supports flat-rate shipping and third-party shipping.

Instant Update API is part of Express Checkout. To get started with Instant Update API, contact your developer or visit PayPal Developer Central.

I have more than one merchant account. Can I use them with PayPal?

You can associate a Payflow account with only one merchant account. If you need more than one merchant account, you'll need to purchase additional Payflow accounts.

How do I close my Payflow account?

If your partner is PayPal or VeriSign, call PayPal Merchant support at 1-888-883-9770 or send an email to at Be sure to include your login ID.

If your partner is a Payflow partner, reseller, or bank, contact the partner, reseller, or bank directly to close your account.

After you close your Payflow account, you won't be able to log in to PayPal Manager. If you need access to your data, you will be charged a fee.

If you're trying to close your PayPal account (not your Payflow account), here's what to do:

  1. Click the Settings icon on the top right corner of the page.
  2. Click Close Account next to "Account type."
  3. Choose up to 3 reasons why you want to close your account and enter any additional information.
  4. Click Continue.
  5. Click Close Account.

How do I get started with PayPal Payments Pro?

To get started with PayPal Payments Pro:

  1. Sign up for a PayPal Business account.
  2. Link your bank account so you can transfer money between your accounts.
  3. Submit the PayPal Payments Pro application.
  4. After your application is approved, accept the Billing Agreement.
  5. Implement PayPal Payments Pro.

PayPal Payments Pro is already integrated into many popular shopping carts. You can also add it to your custom-built shopping cart.

Learn more about PayPal Payments Pro

How do I add a PayPal logo to my website?

Here's how to add a PayPal logo to your website:

  1. Go to PayPal Logo Center.
  2. Click Get Code.
  3. Copy the code and paste it to your website.