Security

Frequently asked questions – seller protection.

Overview

What is Seller Protection?

If you have a registered PayPal account in the United States, you will be covered in the event of an unauthorized payment, an item not received dispute, chargeback, or reversal, as long as the transaction in question meets our eligibility requirements.

What is an unauthorized transaction?

An unauthorized payment occurs when money is sent from a PayPal account and the account owner did not authorize or benefit from that payment. For example, if someone steals a user’s password, uses the password to access the user’s PayPal account, and sends a payment from that account, that payment is unauthorized. In addition, payments sent using a stolen bank account or credit card information are also unauthorized.

What is meant by “item not received?”

This is when a buyer pays for an item but it never arrives.

What is a confirmed address?

This refers to a buyer's address that PayPal has validated as legitimate. Shipping to a confirmed address offers you an extra layer of protection, as it helps limit fraudulent transactions, fraud-related chargebacks, and the use of stolen credit cards. The confirmed shipping address can be found in the Transaction Details.

There are two different ways an address is confirmed:

  1. PayPal examines a buyer's credit card billing and shipping addresses and verifies them.
  2. PayPal examines a buyer's PayPal account history and confirms that their address is legitimate.

Question about Coverage

Are there any fees for Seller Protection?

No. Seller Protection is offered to PayPal sellers at no additional cost.

What are the terms of coverage?

See a list of seller requirements here, or read the PayPal User Agreement for our complete terms of coverage.

What are the transaction eligibility requirements?

To be eligible for Seller Protection, you'll need to meet each of the following requirements:

  1. You must send the item to the shipping address on the Transaction Details page.
  2. You must respond to PayPal's requests for documentation and other information in a timely manner.
  3. The item must be a physical, tangible good that can be shipped.
    (Example: a DVD is eligible but an MP3 file is not)
  4. Your primary residence, as listed in your PayPal account, must be in the United States.
  5. We recommend that you ship the item within 7 days of receipt of payment. Or, if the payment is for pre-ordered or made-to-order goods, it must be shipped within the timeframe specified in your item listing.

Note: Item not received buyer claims filed directly with eBay are not covered under PayPal Seller Protection. Check out eBay Buyer Protection for more information.
Read the PayPal User Agreement for our complete terms of coverage.

What types of transactions are covered?

All transactions for tangible goods that were paid for with PayPal are eligible for coverage if they meet the requirements for US sellers-except those processed through Virtual Terminal or PayPal Direct Payment. Read the PayPal User Agreement for our complete terms of coverage.

What's the difference between tangible and intangible goods?

A tangible good can be held and shipped (CD, mobile phone).
An intangible good can't be held or shipped in a box (MP3, ringtone).

What protection do I have for items not sold on eBay?

The transaction must be marked eligible or partially eligible for Seller Protection on the Transaction Details page.

  • Items sold on eBay will be marked eligible even if the shipping address is unconfirmed. Generally, items sold on websites other than eBay will be marked eligible if the shipping address is confirmed, and partially eligible if the shipping address is unconfirmed.

Read the PayPal User Agreement for our complete terms of coverage.

Why doesn't Seller Protection cover deliveries made in person, or intangible goods (such as digital goods or services)?

One of the most important requirements for coverage under Seller Protection is proof of shipment or delivery. Since deliveries made in person and sales of intangible goods do not have verifiable shipping documentation, we cannot currently extend protection for these types of transactions.

Is Seller Protection available for all shipping destinations?

Please see the PayPal User Agreement for country-specific information.

Is coverage only available when I ship to a confirmed address?

You must ship the item to the shipping address on the Transaction Details page, and the transaction must be marked eligible or partially eligible.

Items sold on eBay will be marked eligible even if the shipping address is unconfirmed.

Items sold on websites other than eBay will generally be marked eligible if the shipping address is confirmed, and partially eligible if the shipping address is unconfirmed.

If an item is marked eligible, protection will be granted for both unauthorized payment and item not received disputes, provided that all other eligibility requirements are met.

If an item is marked partially eligible, protection will be granted for item not received disputes only, provided all other eligibility requirements are met.

Read the PayPal User Agreement for our complete terms of coverage.

What if the buyer asks me to ship to an address other than the Shipping Address on the Transaction Details page?

If you ship to a different address, you will not be eligible for coverage. If the buyer wants you to ship to a different address, we recommend that you ask the buyer to resubmit the payment with the new shipping address.

Question about Shipping

What is proof of shipment?

Proof of shipment is documentation or online verification from the shipping company showing a status of shipped, the shipping date, the address to which the package was sent, and official acceptance from the shipping company (for example, a postmark). It differs from proof of delivery because it only has to show that a package has shipped to the confirmed address on the account.

Read the PayPal User Agreement for our complete terms of coverage.

What is proof of delivery?

Proof of delivery indicates that the item was delivered to the recipient, and generally comes in the form of an online tracking number. It shows the city, state, and zip to which the package was shipped, the date the package was delivered, and its delivery status. For payments of $250 USD or more, a signature confirmation of receipt is also required. The proof of delivery doesn't need to show the full street address since some shipping companies don't include this information. The city and state or zip code (or equivalent) is normally acceptable.

Read the PayPal User Agreement for our complete terms of coverage.

What if the buyer asks to use their own shipping label?

Sometimes, buyers want to use their own shipping account information and tell sellers to use it to ship the order. We strongly discourage using the buyer’s shipping account information. Because the buyer “owns” the shipping, the buyer could re-route the package mid-shipment to another address, even if you’ve initially shipped it to the shipping address on the PayPal Transaction Details page.

If the buyer subsequently files a dispute, claim or chargeback saying they never got the item, you won’t have delivery confirmation showing that the item was delivered to their address on file with PayPal, as required by PayPal Seller Protection. Therefore, you would lose any dispute, claim or chargeback. So please beware when a buyer offers to let you use their shipping account, because it may mean some additional liability for you.

What if the shipping company forgets to scan the item upon delivery?

If this happens, you'll need to follow up with the shipping company directly. We can only accept an official status of delivery from the shipping company.

How can I submit proof of shipment or proof of delivery?

If you are responding to a claim or a chargeback for an unauthorized payment, you can fax or upload scanned images of your proof of shipment in the Resolution Center.

If you are responding to a claim or a chargeback for an item-not-received, we accept online tracking information as proof of delivery in the Resolution Center.

Do services such as Endicia, USPS Click N Ship, UPS WorldShip, USPS First Class Mail International, or Stamps.com provide valid Proof of Delivery or Proof of Shipping?

In order to be covered under Seller Protection, the information provided by the tracking number from the shipping company must meet the proof of shipping or proof of delivery requirements. Please verify that the information from the shipping services meets these requirements.

How do I provide proof of shipment or proof of delivery if I'm using a drop shipper?

You'll need to obtain the required documentation from the drop ship facility.

Questions about Claims

Will Seller Protection give me access to funds if a claim or a chargeback occurs?

PayPal will place a temporary hold on the transaction amount while we make sure the transaction is eligible for coverage. Once we validate your shipping documentation, if the transaction is covered under Seller Protection, we will lift the temporary hold and restore your access to the funds. If it is not covered, we will return the funds to the buyer's account and you may be responsible for PayPal's chargeback fee, if applicable.

What do I do if a buyer files a claim or a chargeback for an unauthorized payment?

PayPal will place a temporary hold on the funds in question and send you an email requesting proof of shipment.

Once we've received your proof of shipment, we will determine whether or not your transaction is eligible for coverage. If it is, we'll lift the temporary hold and restore your access to the funds as soon as possible. If it isn't, we'll return the funds to the buyer's account and you will be responsible for PayPal's chargeback fee, if applicable.

Read the PayPal User Agreement for our complete terms of coverage.

What should I do if a buyer files a claim or a chargeback for an item not received?

PayPal will place a temporary hold on the funds in question and send you an email requesting proof of delivery.

For payments of less than $250 USD (or its equivalent in another currency), you will need to provide proof of delivery that can be viewed online. For payments of $250 USD or more, you will need to provide a signature confirmation that can be viewed online.

Once we've received your proof of delivery, we will determine whether or not your transaction is eligible for coverage. If it is, we'll lift the temporary hold and restore your access to the funds as soon as possible. If it isn't, we'll return the funds to the buyer's account and you will be responsible for PayPal's chargeback fee, if applicable.

Read the PayPal User Agreement for our complete terms of coverage.

International Questions

All international questions and answers are covered in the PayPal User Agreement