|Tue Nov 18 2014 22:47:22|
PayPal Holds Sellers Liable for 6 Months, On and Off of eBay
By: Ina Steiner
Wednesday's EcommerceBytes Newsflash describes an unpopular policy PayPal is rolling out that some sellers (and maybe some buyers, too) are referring to as PayPal's 6-month rental policy. That's because buyers can file claims 6 months after an item was estimated to be delivered to them.
It's now critical that sellers on all venues save proof of delivery confirmation along with details. Take a look at some of the requirements in the PayPal Seller Protection under Section 11.4. Here's a snippet
"Proof of Shipment" is online or physical documentation from a shipping company that includes all of the following: The date the item is shipped; The recipient's address matches the shipping address provided on the Transaction Details Page; The recipient's address, showing at least the city & state, or city & country, or zip/postal code (or international equivalent).
"Proof of Delivery" is online documentation from a shipping company that includes all of the following: The item's status as delivered; The date the item is delivered; The recipient address is the same as in the shipping address section on the Transaction Details Page; The recipient's address, showing at least the city & state, or city & country, or zip/postal code (or international equivalent); Signature Confirmation as described below if the full amount of the payment including shipping and taxes is $750 USD or more or its foreign currency equivalent provided below (see website for the chart).
These are the questions sellers had about the policy that we forwarded to PayPal. We'll do a followup as we get more clarification.
1) Will USPS, FedEx, UPS, eBay, and other marketplaces retain information about transactions for 180 days?
2) Some believe it could take up to 230 days after payment for PayPal to review (180 days, plus the 20 days allowed before escalating a dispute to a claim, plus the 30 days PayPal may take to review the case). Is that correct? And if so, will the entities mentioned in question 1 retain information about transactions for 230 days?
3) Will sellers on various marketplaces be able to access their original listings to defend against SNAD cases in PayPal Purchase Protection cases?
4) Will PayPal and or eBay be advertising the new 180-day coverage policy?
5) Will eBay direct buyers who try to open a claim outside of eBay's Money Back Guarantee policy to the PayPal Protection Policy?
6) It's my understanding that USPS (and perhaps other shipping carriers) give sellers 60 days to file a claim, leaving 4 months of exposure to shipping claims. How do sellers protect themselves from this unprotected exposure?
7) "Currently, PayPal's embedded Refund link within the transaction details is only good for 60 days. This link is important for sellers to receive appropriate reimbursement of PayPal's % fee. Will this link's expiration be expanded to cover the new return policies? If not, how do sellers validly refund to realize recovery of their fees?"
8) Will all sellers have to adhere to the extended 180-day PayPal Purchase Protection policy? Will big box retailers, brands, or any other entities have an exemption?
9) Will there be an appeal process, and if so, can you provide information?
In disputes about item not as described, it's important sellers have access to their original listings. A suggestion: don't rely on marketplaces to keep those completed transactions for you - perhaps printing each completed listing as a PDF file might help.
The bottom line is that sellers must be in a position to defend their transactions 6 months into the future, so good recordkeeping is vital. Let us know if you have questions or comments!