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PayPal Glitch Raises the Issue of Seller Protection

An eBay seller forwarded an email they received from PayPal about a “Recent Transaction Issue.” PayPal apologized for an error that impacted some transactions between buyers and sellers.

“From 4:00 p.m. PDT on April 13 until 6:00 a.m. PDT on April 14, some transactions were incorrectly labeled as a payment for a service, instead of for goods,” PayPal explained. “This prevented shipping information from being included in the details of the payment.”

There’s a bigger issue than just being inconvenienced by not having the shipping information in the payment details – sellers are not protected for services in the same way they are for shipping physical goods.

PayPal advised sellers who received payments for services to work with their buyers, and it reassured sellers that for payments that were for goods and not services, it would protect sellers under its Seller Protection policy “as long as you ship to the buyer’s address.”

PayPal signed off with, “We apologize for any inconvenience and appreciate your business.”

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Ina Steiner
Ina Steiner
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 ina@ecommercebytes.com.