How does PayPal Tracking Exactly Works? Sellers & Buyers Guide

Paltrack Shopify PayPal tracking App allows your customers to stay informed on their purchased orders at all times. It allows them to track their package anytime they want.

How does PayPal Tracking Exactly Works? Sellers  & Buyers Guide
With the presence of tracking information, you will be qualified for the PayPal Seller protection Program - Paltrack Shopify PayPal Tracking Sync App >

To begin with, Sellers that use PayPal gains so many edges as PayPal offers a variety of advantages including cost savings, ease of use, and user convenience. PayPal simply helps merchants boost their selling process. However, the strict security of using this payment gateway and its stringent policy in protecting its users brings pain points to sellers.

This is why Paypal tracking comes in.  From this, Let's learn How does Paypal Tracking really works and Why is it so important?

PayPal tracking allows your customers (as well as Paypal) to stay informed on their purchased orders at all times. It allows them to track their package anytime they want. As a result, customers feel confident in the reliability of the seller and will be less inclined to file a chargeback or dispute.

If sellers do not regularly provide PayPal Tracking numbers, PayPal triggers to mark a Red Flags on your Account and those Red Flags are visible to your customers and future customers which is hurtful to your business.

How Does PayPal Tracking Really Work?

Sellers that use PayPal must consistently submit a " Proof of shipment" and "Tracking Information" to every order transaction on their PayPal Account.

Customers will use that Tracking Information to monitor the status of their orders at any time and be able to see some important details such as the shipping providers, delivery address, and some other tracking essential details.

How tracking Information can help you grow your business?

  • With the presence of tracking information, you will be qualified for the PayPal Seller protection Program. This is a PayPal scheme that protects merchants from Fraud by Buyers, Chargebacks, PayPal Holds, Disputes, and reserved funds.
  • Having tracking Information available on every transaction, you can grow your business by being able to access your PayPal funds quickly.
  • Gain customers' Loyalty at Zero Effort. It is the result of customers' satisfaction and increases the percentage that your customers will likely repeat doing business from your store's

As thousands of businesses use PayPal, PayPal uses AI and advanced security to detect any anomalies in transactions and identify possible fraud. For PayPal to protect its users, they require regular submission of Tracking information.

You have an option to manually enter all of your order tracking information, but doing so would take a lot of time. Click here to see how to add tracking to PayPal and Update your orders.

If PayPal AI contains sufficient information then PayPal would be in your Favor and qualifies you with their PayPal Seller Protection Program.  We have gathered a guide on how to protect your account from receiving PayPal Disputes check this out to stay more informed.

PayPal Seller Protection helps merchants shield their transactions from chargebacks, reversals, and other fees that go along with them, and by having the tracking information available for every transaction, you become eligible for this program's protection.

What is the PayPal Red Flag Solution?

Simply automate the submission of your tracking information from your Shopify store to your PayPal Account on Autopilot. Check Paltrack a Shopify application that works the heavy lifting. Paltrack has one mission which is to automatically and continuously sync the Tracking Informations from your Store to your PayPal real-time resulting in having a good relationship with your Payment Provider.

  • Paltrack is a simple and smart solution, that automatically detects orders that have been fulfilled from your store in a millisecond, Paltrack pull-out those information and submits it to your PayPal Account. Zero"0" Human Mistakes all Valid transaction details syncs automatically. Paltrack, not only saves your time but also allows you to build rapport with your customers.
  • Approved by Shopify and Paltrack comes with a 14-day trial period,  No tracking numbers limit, Back-Time Feature to sync old orders, Auto-Routing Rule, Email Notification Report, and 24/7 Support with Experts.

Check it out here:


How to add Tracking Details to PayPal Manually?

We all know that your PayPal tracking Information can be added manually, however it's a tedious and complicated process. Here are the steps on how to do it.

  1. Go to your PayPal “Activity” Page.
  2. Yur will be directed to all your transaction.
  3. Find the transaction/s you want to update, then click the drop-down menu and choose "add tracking to PayPal."
  4. Input all the shipment details and all other tracking-related details.
  5. Select service or virtual products and confirm/update the status.
  6. Hit Submit Tab
  7. Repeat the process of each order transaction.

What is PayPal Seller Protection, and Why Do I Need This?

PayPal Seller Protection Program helps you protect your business from difficult customers. Overall secure your store against scammers and hackers. PayPal favors you in protecting your stores from unhappy customers that file these kinds of PayPal Claims; Item Not Received (IND), Significantly Not As Described (SNAD), Unauthorized Transactions (UT).

Why do I Need PayPal Seller Protection?

Mainly helps you conduct your business with peace of mind and with Confidence.

Even Customers Files claim Paypal will still pay you for every order that is completed. Normally, these are the causes of the buyer's concerns:

  • Item Not Received (IND): The buyer pays the items and claims that they have not received item(s)
  • Significantly Not As Described (SNAD): the buyer claims that the item received is different from the descriptions or different than what they ordered. Merely the physical attributes of the Item (s)
  • Unauthorized Transactions (UT). Where a buyer claims a purchase was made under their details without their consent

Just in case your orders are fulfilled by a certain courier. Be sure that your courier actually shipped the package to your corresponding customers. PayPal will request to you send “ Proof of Shipment” as a basis that you are a reliable seller and that you actually shipped the item and promptly responding to the Paypal documentation request will enable your PayPal Seller Protection

As you can see it is mandatory that as a seller you need to submit Tracking Information to every order as well as the  Proof of Shipment for you to be eligible for PayPal Seller Protection.

As a seller, it's a hassle to update tracking details Manually. It's a big NO if you want to scale your business revenue. That is why we recommend using an application like Paltrack to work on all your tedious tasks and like other Shopify merchant that uses Paltack as their business partner. It's time for you to Trust Paltrack,  you'll be surprised at how much you can gain by letting Paltrack handle the back-end work.


Maintaining the consistency of submitting PayPal tracking information is the best approach to ensure the growth of your business.

Without the presence of tracking information you will be affected by PayPal chargebacks, dispute holds, and other charges. By this far we have identified that updating tracking details can be very complicated, expensive, and time-consuming which is why it is recommended to use Paltrack an application approved by Shopify to Automate the process of submitting tracking data to your PayPal account at a minimal cost.

How about you? ​​Has it been challenging for you to update tracking information on PayPal?

Let us know your thoughts. Feel free to send us an email and we’d love to help you.