PayPal Seller Protection protects eligible eBay sellers against payment reversals due to unauthorised payments (for example, payments made with stolen credit cards) and buyers who claim they haven't received items they've bought from you. Seller Protection is included at no extra charge as part of PayPal’s service to you.

PayPal Seller Protection applies to the various ways these payment reversals may be initiated, including:

• Claims buyers file through the PayPal Resolution Centre.

• Credit and debit card chargebacks buyers file with their card issuers.

• Bank account payment reversals buyers file with their banks.

 What’s not covered under PayPal Seller Protection?

• Local pickups or deliveries made in person.

• Digital goods, services, or intangible items.

• Significantly not as described claims or chargebacks.

• Unauthorised reversals or chargebacks for items not sold on eBay.

How to make a Seller Protection claim through PayPal

To be eligible for PayPal Seller Protection you must: 

• Sell on an eBay site and accept payment to your Australian PayPal account.

• Post the item via an Approved Postage Service to the address specified by the buyer on the Transaction Details page.

• In the event of a chargeback or reversal, provide proof of shipment.

What is “proof of shipment” and what forms of “proof of shipment” does PayPal accept?

Examples of proof of shipment include the following:

• A copy of the postage receipt that includes the eBay buyer's delivery address. You can get this from Australia Post's Registered Post and Australia Post's Registered Post International, or

• For Australia Post eParcel customers, a copy of the consignment information page which shows buyer’s address and the online tracking code that can be used to confirm delivery, or

• A postage code that PayPal can use online to view thepostage status and the eBay buyer's delivery address. You can get this from TNT, DHL, FedEx, and other carriers, or

• A receipt issued by the carrier that is signed by the recipient acknowledging delivery

 If you post your items to other countries PayPal Seller Protection applies to you as long as you sell items on an eBay site and your transaction meets the eligibility criteria.

PayPal Dispute Resolution Process

Even when you do your best, sometimes things can go wrong with a transaction. When you use PayPal you can take advantage of our dispute resolution tools to help resolve such problems.

Step 1 - Notification of dispute

You will be notified by email that your buyer has opened a dispute. Most disputes are the result of a misunderstanding and by communicating with your buyer, you have a chance to offer customer service and gain repeat business.

Step 2 - Negotiate to resolve issue

Review your buyer's dispute by logging in to PayPal's Resolution Centre and post your reply message.

Tip: Make it clear that you see the situation as solvable and include some suggestions to help resolve the dispute. The funds associated with a disputed transaction may be held until the situation is resolved, so it's in your best interest to communicate with the buyer as quickly as possible.

Step 3 - Buyer closes dispute or escalates to a claim

To help ensure that disputes are resolved within a reasonable period of time, a buyer must escalate a dispute to a PayPal claim within 20 days. After this the dispute will automatically close.

Once a dispute is closed, if the dispute is resolved in your favour, the undisputed funds will be available to you. A closed dispute cannot be re-opened or escalated to a PayPal claim.

Although a buyer can escalate a dispute to a claim at any time, they are less likely to do so if they feel that you are working with them to resolve the issue.

Step 4 - PayPal investigates and resolves claim

If a dispute is escalated to a claim the emails you and the buyer exchanged during the dispute along with other information will be used to decide the outcome of the case. You can respond to requests for information from PayPal and track the progress of a claim in the Resolution Centre.

A message from our lawyers

The PayPal service is provided by PayPal Australia Pty Limited (ABN 93 111 195 389) which holds an Australian Financial Services Licence, number 304962. eBay International A.G is an authorised representative number 308318 of PayPal for the purpose of providing information about PayPal. eBay and PayPal are not acting as your agents, are not providing personal financial advice to you and do not take your individual circumstances into account in providing information about PayPal. You should consider PayPal's Combined Financial Services Guide and Product Disclosure Statement before deciding to sign-up for or use the PayPal online payment service. For further information about PayPal services visit the PayPal website at www.paypal.com.au.

PayPal Buyer Protection and PayPal Seller Protection are also subject to the terms and conditions in PayPal's User Agreement, incorporating the Buyer Protection policy and Seller Protection policy which include details on eligibility criteria and the discretionary nature of the policies.