Does Seller Protection include Item Not Received chargebacks from buyers?
Seller Protection will no longer apply to transactions received after 16 January, 2023, where that transaction is subject to a card issuer Chargeback, also referred to as an External Chargeback, for INR.
A card issuer Chargeback is where a buyer funds their payment using a debit or credit card and reports an issue directly to their card issuer.
PayPal will continue to use the seller’s response to our enquiries to contest the Chargeback with the card issuer.
The card issuer’s decision will apply to the reversal. Where the issuer finds against a seller, the funds will be reversed to the buyer.
In cases where the card issuer decides the Chargeback in the buyer’s favour, sellers may be subject to a Chargeback fee. See the Fees section for more details.
Seller Protection will continue to protect sellers from reversals received due to unauthorised transactions and most issues due to Item Not Received (INR).
How much of an effect will this have on me?
Most issues protected by the Seller Protection programme today, such as claims for unauthorised transaction or Item Not Received, will not be affected by this change as it’s specific to card-issuer chargebacks, also referred to as ‘External Chargebacks’ for Item Not Received.
What can I do to minimise the impact of this change?
Most Item Not Received issues (INR) arise from poor communication around the expected delivery date of an item, stocking issues, errors, delays in shipping or poor performance by your shipping company.
Will this affect Chargeback or Dispute Fees?
Where a Chargeback no longer qualifies for Seller Protection, it may incur a Chargeback or Dispute fee depending on the outcome of the Chargeback. See the Fees section for more details.