EcommerceBytes-NewsFlash, Number 1905 - October 28, 2008     4 of 5

eBay Announced Improved PayPal Protection for Buyers & Sellers

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eBay announced that its PayPal Buyer Protection program now covers buyers for the full purchase price and original shipping costs with no coverage limit. Previous coverage limits were $200 or $2000, depending on the feedback of the seller. The program applies to Item Not Received (INR) and Significantly Not as Described (SNAD) claims. There are some exceptions - for example, vehicles are not covered, and buyers must meet all of the following requirements to be eligible for PayPal Buyer Protection:

  • Use PayPal to purchase an eligible item on eBay.
  • Pay for the full amount of the item with one payment. Items purchased with multiple payments - like a deposit followed by a final payment - are not eligible.
  • Send the payment to the seller through the eBay "Pay Now" button or the eBay invoice, or the "Send Money" tab on your PayPal account overview page.
  • Open a Dispute within 45 days of the date you sent the payment then follow the online dispute resolution process described below under Dispute Resolution.
  • Keep your PayPal account in good standing.

PayPal also said it now protects all US sellers (not just PowerSellers) on eligible transactions with buyers from the 190 markets where PayPal is accepted, with no annual coverage limit and for no additional cost. Sellers can ship to any address listed on the transaction details page - confirmed or unconfirmed - for items sold on eBay.

There are also some exceptions to the improved protection for sellers. For example, if a payment is pending review by PayPal and the Transaction Details page tells a seller not to ship, but the seller does, then the seller won't be covered.

PayPal said that although the PayPal User Agreement states that the buyer and seller protections are not effective until 10/31/08, the actual date for transaction coverage started October 22, 2008.

eBay Announcement

PayPal Announcement

About the author:

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to

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