|Mon Aug 2 2010 23:19:02|
PayPal Mulls Expanded Seller Protection for a Price
By: Ina Steiner
PayPal is conducting a survey to determine how much sellers would be willing to pay for a new seller protection program. PayPal exposed survey respondents to five variations of the program and asked a series of questions after each.
One plan offered expanded seller protection, covering chargebacks and Item Not Received claims, and might cost sellers between .5% - 2% of the transaction value.
Another plan would give sellers credits every time one of their customers used PayPal that the seller could use towards reversing chargebacks or claims with no documentation. Another plan would allow sellers to choose which transaction to cover.
A fourth plan would offer Shipping Protection when using a PayPal Shipping Partner website to ship an item, while a fifth plan would offer Fraud Protection.
The five plans as outlined in the survey follow below:
1) Expanded Seller Protection - You're covered when things go wrong.
* Your fraud chargebacks and item not received are covered by PayPal.
* You are automatically enrolled when you receive payments with PayPal.
* All you need to do is to provide us with proof of shipping and/or delivery
o Fraud requires proof of shipping
o Item not received requires proof of delivery
o For item not received, if the transaction is greater than $250, then we need proof of signature with the delivery.
If the program was available at this price: 2.00% of the transaction, which statement best describes how likely are you to encourage your customers to pay through PayPal?
If the program was available at this price: 0.50% of the transaction, which statement best describes how likely are you to encourage your customers to pay through PayPal?
2) Seller Protection Credit Enhancement - Be rewarded every time you choose PayPal.
* Earn credits to reverse chargeback's or claims with no documentation.
* Whenever your customers use PayPal for bank or credit card, you'll earn credits that you can use if things go wrong, You'll earn a $5 credit for every $1,000 of transaction volume that goes through PayPal.
* Credits are good for reversing chargebacks on fraud charges, items not received or items that are damaged in shipment.
* You decide when to apply your accumulated credits.
* This coverage is good for tangible and intangible goods.
* Credits can also be used to cover the chargeback fee.
* Credits have no expiration fee
* No limit to how many credits you earn or use
* You can choose to apply credit when claim or chargeback is filed or if you fight the claim or chargeback and lose, you can then apply the credit.
* You'll receive a credit statement monthly
Assume there are no additional fees for this protection. After reviewing this Seller Protection program how likely are you to enroll in this program?
If the program was available at this price: $40.00 per month, which statement best describes how likely are you to encourage your customers to pay through PayPal?
3) Full Choice Protection - Choose the Protection You Want On Every Transaction
* You choose what transaction to cover and you are protected
- Losses from Fraud and Unauthorized Transactions
- Losses from Item not Received
- Losses from Damaged in Shipping
* You'll have 24 hours from the time transaction completes or until you ship or deliver the product (whichever is less) to choose the protection you want
* You can set preference for automatic coverage: cross-border, international, ASP, etc.
* You can cover both tangible and intangible items against fraud charges.
* Documentation for fraud will be based on the type of good:
- Physical goods require proof of shipping.
- Digital downloads require server logs
- Services require a copy of the invoice or contract
* Items not received or items damaged in shipment coverage will require proof of delivery. If the transaction is greater than $250, then we need proof of signature with the delivery.
4) Shipping Protection Enhancement - You decide what you want to cover on every transaction
* Use PayPal Shipping Partner Website to ship an item, PayPal will cover fraud charges, items not received or items damaged in shipment on the sales of any tangible items that you choose to cover.
* This only applies to tangible goods that can be shipped.
* You can set automatic preferences: domestic regions, cross-border, international, ASP, Fraud Only, etc.
* Documentation required:
- No documentation required; we access the shipping information that you created for the transaction
5) Fraud Protection Enhancement - Umbrella coverage for every transaction, 24/7
* You enroll in this coverage and PayPal will cover you for fraud
* You can it turn on and off - three times in one month
* Every transaction both tangible and intangible is covered against fraud charges.
* Documentation will be required based on the type of good:
- Physical goods require proof of shipping.
- Digital downloads require server logs (proof of delivery)
-Services require an invoice or contract