PayPal is pleased to announce that from 27 March 2008 PayPal Seller Protection* will be available for sellers transacting on eBay with an Australian PayPal account.
PayPal Seller Protection provides cover to all eligible eBay sellers for credit card related chargebacks and claims through PayPal Online Dispute Resolution for items not received or due to unauthorised payments (eg stolen credit card or account takeover).
PayPal Seller Protection is offered free as part of PayPal’s usual service and is the first policy of its kind for eBay sellers with Australian PayPal accounts.
What's changed?
Sellers who accept credit cards (both off and online) usually have worn the costs associated with credit card chargebacks. On eBay, they may have also worn costs associated with claims through PayPal Online Dispute Resolution for items not received or unauthorised credit card transactions.
It’s important to understand the difference between a chargeback and a claim. In essence, a chargeback is initiated by a credit or debit card holder directly with their bank or card issuer.
A claim is initiated by a buyer through PayPal and begins with the PayPal Online Dispute Resolution Process.
With the introduction of PayPal Seller Protection, sellers may be covered in the unlikely event of a claim or a chargeback associated with the sale of an item on eBay. Of course, eligibility criteria apply and one of the main requirements is that the sellers can provide acceptable proof of shipment which shows that they posted the item to the correct address.
How does it work?
When a buyer initiates a chargeback through their bank or files a claim through PayPal Online Dispute Resolution regarding an unauthorised payment or item not received, then the seller’s funds for that transaction are frozen while the complaint is under review. If PayPal determines that the complaint is valid then those funds will be reversed from the seller’s account.
However, if a seller meets the eligibility criteria (described below) PayPal will not reverse the funds from the seller’s account.
What are the eligibility criteria?
The main eligibility criteria for PayPal Seller Protection are:
- Hold an Australian PayPal account
- Receive payment for a tangible eBay item
- Receive payment for the item into your Australian PayPal account
- Post the item to the buyer’s correct address using a PayPal approved postage service
- Retain the proof of shipment
- Provide PayPal with adequate proof of shipment and any other requested information in
a timely manner
Some exclusions apply, for example: claims for significantly not as described (SNAD), intangible items (such as a service or digital content), motor vehicles, or if sellers hand-deliver the item (eg, local pickup.)
What are the PayPal recommended postage services?
| Postage from, to | Recommended postage
service |
| To any destination | Any international shipper that supports door-
to-door tracking that is viewable online, such as UPS, FedEx or DHL |
| Within Australia | Australia Post Registered Post |
| Outside of Australia | Australia Post Registered Post International |
The PayPal Seller Protection Policy will be available on PayPal.com.au from 27 March 2008.
We’ll be hosting a workshop in the coming weeks so keep your eyes on the Announcement Board for details.
Regards,
The PayPal team
*Conditions apply. The Seller Protection Program is subject to the terms and conditions in PayPal's User Agreement.
The PayPal service is provided by PayPal Australia Pty Limited (ABN 93 111 195 389) which holds an Australian Financial Services Licence, number 304962. You should consider the Product Disclosure Statement before deciding to sign-up for or use the PayPal online payment service at https://www.PayPal.com.au
