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.

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. For all 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 the United States

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 page.
  • Your account must be in good standing.
  • You must respond to our requests for documentation and other information within the required timeframe.
For physical goods:
  • You must ship the item to the address on the Transaction 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 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. 
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 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 when abusing the privileges offered. In the event of withdrawing Seller Protection, PayPal will communicate the same before taking any action.
For full eligibility requirements, see the full Seller Protection Policy terms in the PayPal User Agreement
Depending on when you view the User Agreement it may still indicate that intangible items, services and digital goods are ineligible, which will no longer be correct. All other exclusions remain in effect.

Here's how you can help prevent fraud when shipping an order:

Verify shipping address
Go online and verify the shipping address. Look for red flags such as shipment to a freight forwarder, shipping company, P.O. Box, hotel or a vacant property. Fraudsters often ship orders to addresses that can't be traced back to them.
  • Freight forwarder: Third party shipping service that reships merchandise to another location (typically abroad) for a fee. To see where your package is being sent to, simply enter the shipping address into a search engine. If the search results show the name of shipping company, be more cautious.
  • Shipping companies or P.O. boxes: Fraudsters like the anonymity that shipping companies and P.O. boxes provide. However, there are also a lot of legitimate reasons for using a shipping company or a P.O. box. You just need to be more cautious, since shipping to P.O. boxes and shipping companies are typically more risky than shipping to residential addresses.
  • Money mule: Fraudsters pay people (known as money mules) to have orders shipped to their address. The money mule receives the package, then reships it to the fraudster’s address. Be careful if you have a lot of orders from different customers that are shipped to the same address.
  • Vacant property: To identify vacant properties, enter the shipping address into a search engine. If the property is currently listed as for rent or for sale, it could be vacant.
Ship with online tracking
Use a shipping service that provides online tracking to help confirm the item was delivered. Standard shipping receipts only show that an item was shipped. Online tracking services prove the item was delivered.
  • If the total sale is for $750 or more, obtain signature confirmation to confirm your customer received their order – the nominal expense is well worth it.
  • Use your discretion when shipping internationally using First Class Mail International since this shipping service is not accepted under PayPal's Seller Protection Policy.
Order shipping insurance
Too many things can go wrong in transit. That's why it's important to purchase shipping insurance for items that are fragile or expensive. Shipping insurance serves two purposes:
  • Insures the item in the event it is lost or damaged.
  • Includes tracking and delivery information so the customer can see that the order is en route, and you will know when the package was delivered.
In case of a shipping problem, file an insurance claim with the shipping company.
  • You, your customer or the shipping company can report claims. Contact your shipping company for detailed instructions on how you should proceed with a claim.
  • Be aware of insurance exceptions.
    • Liability for loss or damage may be limited depending on the type of package, the declared value, and/or the shipping company. Talk to the shipping company to ensure proper coverage.
Delay shipping high-risk orders
  • Delay shipment for new orders that are expensive and in demand for 24 to 48 hours, especially when shipping internationally.
  • Use caution when shipping overnight. Fraudsters will often ask for overnight shipping so that they can resell expensive merchandise as quickly as possible.
Use your own shipping service
  • Do not use your customer's shipping company when mailing orders. Packages can be rerouted by the customer to other addresses after shipment, and won't be covered by Seller Protection.
Use care when choosing or acting as a drop shipper
  • Since you're responsible for delivering what the customer orders, it's critical to choose a reputable drop shipper to help avoid losses.
  • Be wary of drop-shipping companies located in high-risk countries.
  • If you're a drop shipper, have a vetting process in place for all suppliers. This should include inventory management and product guarantees (to ensure that items are in stock and you're delivering high-quality merchandise).
Issue returns quickly and let customers know when you are out of stock/inventory
If an item is out of stock, remove the listing or update it to reflect the out-of-stock status. Provide an estimated in-stock date or clearly indicate that customers who choose an out-of-stock product are placing an advance order.

Example: A new customer orders a $10,000 chandelier. Here is what you can do:
  • Search an online map to see who and where the order is being shipped. Is the order being shipped to an expensive home, motel or to a freight forwarder?
  • Use a search engine or social networking site to verify the name and shipping address. Does the name, shipping address and billing address match?
What is manual card entry and when can I use it?

Manual card entry allows you to accept card payments from customers who aren’t physically present. This means that you are not allowed to accept card payments from customers by manually entering their card details when the customer is physically present in your store. 

To accept manual card entry, enter your customer’s credit card in the PayPal Zettle app when they check out. This payment option is convenient when you want to secure a booking or charge for remote orders over the phone or online.  

How much does it cost?

The only cost is the payment fee of 3.49% + $0.09 USD. This is slightly higher than our usual payment fee due to the increased security risk inherent in manually registering card details. 

How do I turn on manual card entry?

You can turn on the feature by accessing the menu in your app, tapping Manual card entry and then pressing the activate button. After that, you’ll see the “Manual card entry” option as a payment method in your checkout. 

Why can't I see manual card entry as an option/ who can use manual card entry?

Only sellers who have connected their PayPal Zettle account to a PayPal Business account and have successfully completed a card payment through a Zettle card reader are eligible to use the manual card entry feature.

How will I get paid for manual card entry payments?

You’ll be paid directly into your PayPal account. As a result, money from manual card entry won’t show up in your PayPal Zettle daily deposit email or on the PayPal Zettle deposits page. Manual card entry payments will however be visible in your sales overview and reporting. 

Are manual card entry payments covered by Seller Protection?

Manual card entry payments aren’t covered by Seller Protection at this time.

Venmo is a social payments service used by millions of people to make and share payments with friends, family, and select approved businesses. It’s similar to PayPal, but it's unique in that Venmo allows users to share and like payments and purchases through a social feed. 

  • Users can make payments by linking their bank account, debit/credit card or by using their Venmo balance.
  • Once a bank account is linked, users can easily transfer money in their Venmo account to their bank account.
  • Users can transfer money quickly using a friend’s phone number, email address or username.
  • If a recipient doesn’t have a Venmo account and a payment is sent using their email address or phone number, the recipient can create an account in order to receive the funds. Once they do, users can also find friends automatically by syncing their Facebook account or phonebook.
  • Splitting payments with friends and family like a dinner bill, concert tickets or the cost of a road trip is one of the most popular uses of Venmo.
  • Many Venmo users like to share their payments and purchases on the Venmo social feed with a fun comment. The actual payment amounts are hidden.
  • Find out more about the Venmo checkout experience and additional details

Merchant FAQs

What will my customer see?
If your customer has opted-in to make payments through Venmo, they'll be presented with an option to pay with their Venmo account after clicking your PayPal payment button on your mobile.

Please note: Venmo users will receive a Venmo-branded transaction receipt in addition to any receipt you currently provide.

1. Customer selects the PayPal payment button:

2. Venmo payment option is presented:

3. Venmo payment is made:

4. Return to merchant payment confirmation page:

Will I have to change my integration with PayPal to accept Venmo payments?
What are the costs to accept Venmo payments? 
There's no additional cost to accept Venmo. You'll pay the same fees for Venmo payments as you do for PayPal payments.
Will Venmo transactions be covered by PayPal's Seller Protection Policy?
Yes, the PayPal Seller Protection Policy will apply to Venmo-funded transactions received through your PayPal account. To learn more about the PayPal Seller Protection Policy eligibility requirements, click here.
Are payments made by Venmo users through my PayPal account subject to the PayPal Purchase Protection Policy?
Venmo payments are covered by the Venmo Authorized Merchant Payment Protection Policy, which generally mirrors the PayPal Purchase Protection Policy, but varies in some places. To learn more, read the Venmo Authorized Merchant Payment Protection policy.
Can my business be promoted through the Venmo app? 
Yes. Venmo users have the option to share purchases in their Venmo social feed. This could include the purchases they make on your site. Note, purchase price won’t be included in their social posts.
Is this available to merchants or consumers outside of the US? 
Currently, Venmo is only accepted within the US and with US merchants. 
Will Venmo payments be available for desktop transactions?
At launch, Venmo payments will only be available for mobile transactions. Desktop support may be available in the future.  
Will Venmo pass the consumer’s shipping addresses to me? 
If your current PayPal integration is set up to receive shipping address, this will not change with the Venmo option.
For more information on Venmo purchases, visit the Venmo Help Center.

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