How does PayPal Seller Protection Policy Protect You?

1. Your PayPal account must have a U.S.-based main address 2. Items must be physical/ tangible that can be shipped. The address on the Transaction Details page must be used for shipping.

How does PayPal Seller Protection Policy Protect You?
How does PayPal Seller Protection Policy Protect You?

PayPal Seller Protection Policy is a protection plan that covers sellers that use PayPal. It protects the seller from false claims and reimbursement for any losses incurred due to an unauthorized transaction.

If you're a PayPal seller, you're probably familiar with the company's seller protection policy. This policy is designed to protect sellers from fraudulent buyers, and it can be a lifesaver if you're the victim of fraud. However, there are some situations where the policy doesn't apply, and you could be left holding the bag.

In this blog post, we'll take a look at the PayPal seller protection policy and some of the situations where it doesn't apply.

What is PayPal Seller Protection Policy?

A Paypal policy that protects sellers from chargebacks, reversals, and their associated fees. Sellers who are qualified under this policy helps protect their store from possible PayPal concerns and you may be able to keep the full purchase amount if something goes wrong.

Why PayPal Seller Protection is vital to business owners?

As an online business owner, it's important to take measures to protect your sales. Fortunately, when you open a Business account with PayPal, PayPal offers Seller Protection at no additional charge for eligible transactions.

This protection covers sellers that use PayPal against claims for items not received or items that are significantly not as described. Plus, PayPal doesn't limit the number of eligible payments, as long as you meet the eligibility requirements. So you can rest assured knowing that your sales are protected when you use a Business account.

How to be eligible for PayPal Seller Protection Policy?

  1. Your PayPal account must have a U.S.-based main address.
  2. Items must be physical/ tangible that can be shipped. The address on the Transaction Details page must be used for shipping.
  3. Proof of Delivery or Proof of Shipment on Intangible  items
  4. Confirmation Signature on the delivery/ shipment package considering item paid in full.
  5. You must respond to PayPal documentation without delay through PayPal Resolution Center.
  6. Pre-ordered or made-to-order goods must be shipped within the timeframe specified in the listing. For all other items, it is recommended to ship within 7 days of payment received.

Type of buyer claims is covered by PayPal Seller Protection Policy.

  • Item Not Received when your customers pay for an item and claim that they have not received the package. Fraudsters may assert that an order wasn't received and then file a dispute with PayPal or their credit card company.
  • Unauthorized transactions customers think and believe that their PayPal account(s) have been used without her permission. Customers have 60 days after the transaction first showed on their bill to report it to PayPal.

Type of transaction is NOT covered by PayPal Seller Protection.

  • Donations
  • Gift Cards and other related items
  • Items / Products that are for pickups or deliveries made in person.
  • Business related to digital goods such as music or computer game downloads.
  • Claims or chargebacks on item(s) that are different from how it was described or are labeled as counterfeit.
  • purchase of any form of investment or financial product.
  • Transaction payments are not made through a PayPal account.
  • Items that are sent after PayPal has advised the Seller not to release the item.
  • Proof of Delivery are not matched the stated  “Transaction Details” page and items not shipped

What happens if I received complaints?

As a seller you are not exempted to receive complaints from your buyer however, you can redirect the concern if the transaction is eligible by PayPal Seller Protection Policy. After PayPal's investigation and finding out the transaction is eligible, you will not be charged any fees and will be able to keep the full purchase amount. PayPal will also waive all chargeback fees.

Keep in mind that the money for the disputed transaction may not be accessible to you while PayPal is in the process of investigation. If Paypal is in your favor, the funds will be returned to your PayPal balance. Furthermore, to fully protect your Shopify store you must meet PayPal’s eligibility requirements and respond to any reversals within the timeframe given. Plus the appropriate proof of delivery or proof of shipment as required.

Now, how prevent PayPal Complaints and Reversal?

​​Complaints are a normal part of doing business, and they can happen for a variety of reasons. The key is to know how to handle them when they occur.

Although you can't stop all reversals from happening, as a seller you can help by providing thorough and accurate details of the items you sell, shipping promptly, and communicating well and professionally with your buyers. The little details go a long way.

  • Answer your buyer's concerns professionally and politely.
  • Create clear shipping timelines.
  • Use reputable shipping partners that offer online shipment tracking details.
  • Automatically submit Tracking numbers to PayPal.

Take note: If you don't have Paypal Seller Protection, you could be at risk for PayPal chargebacks, disputes, holds, and red flags, which can be harmful to your online store.

Let us hear your thoughts! Why do you think activating PayPal Seller Protection Program is vital to all business owners that use PayPal?