eBay Announces PayPal Buyer Protection Program

eBay announced that it will launch a new program this Fall to help protect buyers from fraud when they pay for their purchases with PayPal. The PayPal Buyer Protection Program will give eBay buyers $500 in additional protection for transactions with qualified U.S. and Canadian sellers.

Currently, eBay offers $200 (with a $25 deductible) of insurance for each transaction on the eBay.com site through its Fraud Protection Program (http://pages.ebay.com/help/community/fpp-guide.html). Transactions with winning bid amounts of $25 or less do not qualify for reimbursement through the Fraud Protection Program, and buyers are limited to three claims in a 6-month period. Buyers who have been defrauded on eBay using a credit card are required to contact their credit card company for reimbursement. If the credit card issuer denies a claim, a buyer is required to show proof that his or her claim was denied when filing a claim with eBay.

eBay said the new PayPal Buyer Protection Program will allow verified PayPal sellers with a minimum of 50 feedback with a 98% positive feedback rating on eBay to offer buyers $500 in coverage, with no service fee. eBay said the program will initially be available to sellers in the U.S. and Canada and will cover buyers for non-delivery of items and items that are substantially not as described.

Details of the PayPal Buyer Protection Program will be available closer to the launch, scheduled for the fall.

PayPal also offers a Money Back Guarantee program for U.S. buyers using PayPal to purchase goods online. Buyers may purchase insurance on physical goods for transactions under $1,000 from qualified sellers. PayPal offers the insurance plan, and sellers are not held liable for buyer claims made under the plan.

http://www.paypal.com/cgi-bin/webscr?cmd=p/gen/warranty-outside