Security

PayPal Seller Protection.

PayPal understands the importance of security and peace of mind when doing business online, and one of the ways we aim to help our customers is with PayPal Seller Protection. The Seller Protection program protects you from losing your money to claims and chargebacks resulting from buyer complaints. There are specifically two types of buyer complaints where Seller Protection provides this protection benefit:

“Unauthorized Transaction” buyer complaints occur when money is paid to you, but the owner of the account claims that he or she did not authorize the payment.

“Item Not Received” buyer complaints occur when a buyer pays for an item but claims he or she did not receive it.

These complaints may reduce your PayPal balance. But with Seller Protection, provided that the transactions meet our requirements, PayPal will protect you by keeping your balance intact – meaning you get to keep your money and won’t be required to pay any fees.

PayPal wants to make it easy for you to feel protected. There’s no charge for this service, and there’s no limit to the number of payments we will protect, as long as the transactions meet the requirements. Seller Protection means you can carry on with your business knowing that PayPal has your back.

What are the requirements for Seller Protection?

Initial Requirements

  1. Ship to the address on the Transaction Details page. If the item was sold through your site, ensure that you’re shipping the item to a confirmed address.
  2. The item sold must be a physical, tangible item that can be shipped. This means intangible items such as digital goods and services are not covered.
  3. You must respond to PayPal’s request for documentation and other relevant information in a timely fashion, typically within ten business days.
  4. Your permanent address (as listed in your PayPal account) must be in the United States.
  5. Depending on the claim type, whether the claim is “Item Not Received” or “Unauthorized Payment,” there are additional requirements listed below.

Additional Requirements

“Item Not Received” additional requirements:

  • The payment must be marked “eligible” or “partially eligible” on the Transaction Details Page.
  • You must provide Proof of Delivery as described below.

“Unauthorized Payments” additional requirements:

  • The payment must be marked “eligible” on the Transaction Details Page.
  • You must provide Proof of Delivery or Proof of Shipment as described below.

What isn’t covered by Seller Protection?

Seller Protection offers coverage for most PayPal transactions, as long as they follow the requirements explained in the previous sections. However, there are also some instances where Seller Protection doesn’t apply:

  1. Claims, chargebacks, or reversals that are filed because the item is significantly different from how you described it – for example, if you described a new item but sent a used one.
  2. Intangible purchases, which include services, digital goods, etc.
  3. Items picked up locally or in person.
  4. Transactions made through PayPal Direct, Virtual Terminal, PayPal Business, or PayPal Here™.
  5. Instances where you receive multiple payments for an item.
  6. Claims filed directly through an eBay account.
  7. Prohibited items, such as drug paraphernalia, ammunition/firearms, or counterfeit goods.
  8. First Class Mail International is not covered under Seller Protection since the receipt only shows which post office the order was delivered to, not the customer's address.

These terms of coverage and eligibility requirements can also be found in our User Agreement online.

What can you do ahead of time to be covered by Seller Protection?

Before you send the customer their purchase, check to see if your transaction is eligible for Seller Protection.

  • If your transaction is eligible you can take advantage of Seller protection program by following the steps described in requirements section. There are no specific steps to be enrolled in the program.
  • If your transaction isn’t eligible or is only partially eligible, review these orders for fraud more carefully since you are responsible for any problems/losses that could occur on these transactions.

What can you do after a claim arises to be covered by Seller Protection?

Please log in to your account and check if the transaction is eligible or partially eligible. Even if the transaction is not eligible for Seller Protection, it’s to your benefit to respond in the Resolutions Center, where we’ll be better able to help you through the claim.

If your claim is eligible, you’ll need to follow the requirements described above.

What is Proof of Delivery?

Proof of Delivery is online documentation from a shipping company that includes all of the following:

  • The item’s status as delivered.
  • The date the item was delivered.
  • The recipient's address, showing at least the city and state, or city and country, or zip/postal code (or international equivalent). The address information on your shipping receipt must match the address on the Transaction Details page.
  • Signature Confirmation, if the full amount of the payment, including shipping and taxes, is $250 USD or more. Signature Confirmation is an online documentation that can be viewed at the shipping company’s website and indicates that the item was signed for on delivery.

What is Proof of Shipment?

Proof of Shipment is online or physical documentation from a shipping company that includes all of the following:

  • The date the item was shipped.
  • The recipient’s address, showing at least the city and state, or city and country, or zip/postal code (or international equivalent). The address information on your shipping receipt must match the address on the Transaction Details page.

How do I provide Proof of Delivery or Proof of Shipment?

Go to the Resolutions Center, where you will be guided for the exact steps on how to provide the Proof of Delivery or Proof of Shipment. We will communicate the timelines to you during the process.

PayPal designed the Seller Protection program with you in mind, and we will work to protect you from unnecessary fees and chargebacks wherever possible. With PayPal on your side, you can do business with confidence.

PayPal User Agreement

Most of the eligibility requirements for Purchase Protection are written above. However, if you still have questions, you can review more about Purchase Protection in our User Agreement.