Amendment to the PayPal User Agreement

Effective Date: Oct 31, 2008
  • Amendment to the PayPal User Agreement

A. PayPal is going to have a newly revised seller protection policy. The new seller protection policy terms below will apply to Claims, Reversals and Chargebacks filed beginning 09/30/08.

11.1 What is PayPal seller protection?

Protection for Claims, Chargebacks, or Reversals based on the following reasons:

  • Unauthorized Payment
  • Item Not Received

Seller protection is available for transactions with buyers everywhere PayPal is accepted. Seller protection does not provide protection for Significantly Not as Described (SNAD) Claims, Chargebacks, or Reversals or for items that you deliver in person.

11.2 How much protection is provided by PayPal seller protection?

PayPal will protect you for the full amount of the eligible Claim, Chargeback, or Reversal and waive the Chargeback Fee, if applicable. There is no annual limit on protection.

11.3 What happens when a buyer files a Claim, Chargeback, or Reversal?

PayPal will place a temporary hold on the funds in your account to cover the full amount of the Claim, Chargeback, or Reversal. If PayPal determines that the payment is covered by seller protection, we will release the hold and restore your access to the funds.

If the payment is not eligible for seller protection, PayPal will remove the funds from your account and return the payment to the buyer. In addition, you will be responsible for PayPal's Chargeback Fee, if applicable.

11.4 What are the eligibility requirements for PayPal seller protection?

You must meet all of these requirements to be covered:

  • Ship the item to the shipping address on the "Transaction Details" page.

    • You may access the "Transactions Details" page by logging into your PayPal Account, selecting "History" and then selecting "Details" for the transaction.

  • Follow the shipping requirements described below.

  • Respond to PayPal's requests for documentation and other information in a timely manner.

  • The transaction must be marked eligible or partially eligible for seller protection on the "Transaction Details" page.

    • If it is marked eligible, protection for both Unauthorized Payments and Item Not Received will apply. If it is marked partially eligible, protection for only Item Not Received will apply.

    • Items sold on eBay will be marked eligible even if the shipping address is marked unconfirmed. Generally, items sold on websites other than eBay will be marked eligible if the shipping address is marked confirmed and partially eligible if the shipping address is marked unconfirmed.

  • The item must be a physical, tangible good that can be shipped.

  • Your primary residence, as listed in your PayPal Account, must be in the United States.

11.5 What are the shipping requirements?

Shipping requirements Protection for Unauthorized Payment Protection for Item Not Received
Proof of Shipment ×  
Proof of Delivery   ×
Shipment within 7 calendar days of receipt of payment *   ×



* If the payment is for pre-ordered or made-to-order goods, shipment is required within the timeframe specified in your item listing.

11.6 What is "Proof of Shipment"?

Online or physical documentation from a shipping company that includes all of the following:

  • A status of "shipped" (or equivalent) and the date of shipment.

  • The recipient's address, showing at least the city/state or zip code (or international equivalent).

  • Official acceptance from the shipping company (for example, a postmark, a receipt, or online tracking information).

Or, if you have Proof of Delivery then you do not need Proof of Shipment.

11.7 What is "Proof of Delivery"?

Online documentation from a shipping company that includes all of the following:

  • A status of "delivered" (or equivalent) and the date of delivery.

  • The recipient's address, showing at least the city/state or zip code (or international equivalent).

  • Signature Confirmation for transactions that total $250.00 USD or more (see Foreign Currency Equivalents below).

11.8 Which shipping services provide Proof of Shipment, Proof of Delivery, and/or Signature Confirmation?

You may use any shipping service that meets PayPal's shipping requirements. The following services meet the requirements:

Shipping From Shipping To Value Of Items Shipping Services
Anywhere Anywhere Any value Any international shipping service that provides door-to-door tracking that is viewable online, such as those offered by UPS, FedEx, or DHL
United States United States Less than $250.00 USD USPS: any service with Delivery Confirmation
United States United States $250.00 USD or more USPS: any service with Signature Confirmation
United States Anywhere Less than $250.00 USD USPS: Priority Mail with the Customs Declaration form (tracking not available for all destinations)
United States Anywhere $250.00 USD or more USPS: Express Mail


11.9 What are examples of items/transactions that are not eligible for seller protection?

  • Claims, Chargebacks or Reversals for Significantly Not as Described

  • Items that you deliver in person

  • Intangible items, licenses for digital content, and services

  • Transactions made through PayPal Direct Payment or Virtual Terminal

11.10 Seller Protection Policy Definitions.

  • "Chargeback" means a challenge to a payment that a buyer files directly with his or her credit card company.

  • "Claim" means a challenge to a payment that a buyer files directly with PayPal.

  • "Item Not Received" means a challenge from a buyer claiming that the item purchased was not received.

  • "Reversal" means a challenge to a payment that a buyer files directly with his Bank, or is initiated by PayPal.

  • "Signature Confirmation" means documentation that can be viewed online at the shipping company's website and indicates that the item was signed for on delivery.

  • "Unauthorized Payment" means a challenge from a buyer claiming that he or she did not make the payment, and that the person who made the payment was not authorized.

11.11 Foreign Currency Equivalents ($250 USD)

350 Australian Dollar (AUD) 55,000 Hungarian Forint (HUF) 800 Polish New Zloty (PLN)
325 Canadian Dollar (CAD) 1,000 Israeli Shekel (ILS) 150 Pound Sterling – United Kingdom (GBP)
6,000 Czech Republic Koruna (CZK) 28,000 Japanese Yen (JPY) 400 Singaporean Dollar (SGD)
1,500 Danish Krone (DKK) 2,200 Mexican New Peso (MXN) 2,000 Swedish Krona (SEK)
200 Euro (EUR) 380 New Zealand Dollar (NZD) 330 Swiss Franc (CHF)
2,000 Hong Kong Dollar (HKD) 1,600 Norwegian Krone (NOK)  


B. PayPal is going to have a newly revised protection for buyers policy. The new terms below will apply to Claims filed beginning 09/30/08.

13.1 How am I protected if I have a problem with a purchase?

PayPal has two programs to help protect you:

  • PayPal Buyer Protection (for eligible items purchased on eBay)

  • PayPal Buyer Complaint Policy (for all other items purchased on or off eBay)

13.2 What types of problems are covered?

PayPal's programs help you if you encounter either of these problems:

  • Item Not Received (INR)

  • Significantly Not as Described (SNAD) (see definition below)

If your problem is a transaction that you did not authorize, please report the unauthorized transaction through the PayPal Security Center at https://www.paypal.com/security.

13.3 PayPal Buyer Protection

  1. What are the eligibility requirements for PayPal Buyer Protection?

    You must meet all of these requirements:

    • 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 by selecting "Pay for eBay Items" and entering your eBay User ID and the eBay item number.

    • 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.

  2. How do I know if I'm purchasing an eligible item on eBay?

    Look for the buyer protection message in the eBay listing in the right hand column under the "Buy Safely" banner. If you see this message, and you meet the eligibility requirements, then your purchase is covered by PayPal Buyer Protection. You can also view this message after you complete your purchase by logging in to your eBay account, going to "my eBay" and looking at the listing. If the listing does not include the buyer protection message, then it is not eligible for PayPal Buyer Protection.

    The buyer protection message will vary based on the eBay website. Here are examples of the buyer protection message:

eBay.com (uncapped coverage)
Pay with PayPal and you're covered. See eligibility


eBay.ca (capped coverage)
This item is covered up to C$2000 See eligibility

This item is covered up to C$200 See eligibility
  1. How much coverage do I get with PayPal Buyer Protection?

    If you see the eBay.com buyer protection message "Pay with PayPal and you're covered", and if PayPal finds in your favor on your Claim, PayPal will reimburse you for the full purchase price of the item and original shipping costs – with no cap on coverage. If the buyer protection message includes a cap on coverage (such as the message on eBay.ca above), and if PayPal finds in your favor, then PayPal will reimburse you for the full purchase price of the item and original shipping costs, up to the coverage cap specified in the buyer protection message. The amount of coverage varies based on the eBay website where the purchase is made.

    PayPal will not reimburse you for the return shipping costs that you incur to return a Significantly Not as Described item to the seller or other party PayPal specifies. If the seller presents evidence that they delivered the goods to your address, PayPal may find in favor of the seller even if you did not receive the goods.

13.4 Dispute Resolution

If you are unable to resolve the problem directly with the seller, go to the Resolution Center and follow this process:

Open a Dispute.

Open a Dispute within 45 days of the date you made the payment for the item you would like to dispute.

Escalate the Dispute to a Claim.

If you and the seller are unable to come to an agreement, escalate the Dispute to a Claim within 20 days after opening the dispute.

You must wait at least 7 days from the date of payment to escalate a Dispute for an Item Not Received (INR), unless the Dispute is for $2,500 or more. If you do not escalate the Dispute to a Claim within 20 days, PayPal will close the Dispute.

Respond to PayPal's requests for information in a timely manner.

During the Claim process, PayPal may require you to provide documentation to support your position. You may be asked to provide receipts, third party evaluations, police reports, or anything else that PayPal specifies.

Comply with PayPal's shipping requests in a timely manner.

For Significantly Not as Described (SNAD) Claims, PayPal may require you to ship the item back to the seller - or to PayPal - or to a third party at your expense, and to provide proof of delivery.

For transactions that total less than $250, proof of delivery is confirmation that can be viewed online and includes: the delivery address, delivery date, and the URL to the shipping company's web site if you've selected "Other" in the shipping drop down menu. For transactions that total $250 or more, you must get signature confirmation of delivery.

How is the Claim resolved?

Once a Dispute has been escalated to a Claim, PayPal will make a final decision in favor of the buyer or the seller. You may be asked to provide receipts, third party evaluations, police reports, or anything else that PayPal specifies. PayPal retains full discretion to make a final decision in favor of the buyer or the seller based on any criteria PayPal deems appropriate. In the event that PayPal makes a final decision in favor of the buyer or seller, each party must comply with PayPal's decision. PayPal may require the buyer to ship an item that the buyer claims is Significantly Not as Described back to the seller (at the buyer's expense), and PayPal may require a seller to accept the item back and refund the buyer the full purchase price plus original shipping costs. In the event a seller loses a Claim, the seller will not receive a refund on his or her PayPal or eBay fees associated with the transaction.

13.5 PayPal Buyer Complaint Policy

  1. What is the PayPal Buyer Complaint Policy?

    It is PayPal's process to help you resolve a problem with a seller through the PayPal Resolution Center for purchases that are not eligible for PayPal Buyer Protection.

    The PayPal Buyer Complaint Policy is similar to PayPal Buyer Protection in that it enables buyers to file Disputes for Items Not Received (INR), or for items that are Significantly Not as Described (SNAD). However, recovery of any amounts is not guaranteed and is limited to the amounts that PayPal can recover from the seller's Account, even if PayPal makes a final decision in your favor.

  2. What is the process for the Buyer Complaint Policy?

    Similar to PayPal Buyer Protection, you must file a Dispute in the PayPal Resolution Center within 45 days of the date you sent the payment. Once you have done so, you should attempt to resolve the Dispute directly with the seller.

  3. What happens if I am unable to resolve the Dispute directly with the seller?

    You may escalate the Dispute to a Claim within 20 days of the date you filed the Dispute. PayPal will make a final decision for some - but not all - Claims.

    PayPal will generally make a final decision for an Item Not Received (INR) Claim, but will not make a final decision for a Significantly Not as Described (SNAD) Claim, or Claims involving the following purchases: intangible items, licenses, airline flight tickets, services, vehicles, live auctions, real estate, classified ads on eBay, or other items as determined by PayPal (collectively "Ineligible Items"). This means that unless the seller voluntarily refunds your money, you will not recover any amounts for a SNAD Claim or a Claim for an Ineligible Item filed under the Buyer Complaint Policy.

  4. What if PayPal makes a final decision in my favor?

    If PayPal makes a final decision in your favor, we will collect any available funds in the seller's PayPal balance at that time. However, recovery is not guaranteed and is limited only to the amounts that PayPal can recover from the seller's Account. Any amounts collected from the seller will be placed in your Account.

13.6 SNAD Definition

What is Significantly Not as Described (SNAD)?

An item is Significantly Not as Described if it is materially different than what the seller described in the item listing. Here are some examples:

  • You received a completely different item. Example: You purchased a book and received a DVD or an empty box.

  • The condition of the item was misrepresented. Example: The listing said "new" and the item was used.

  • The item was advertised as authentic but is not authentic.

  • The item is missing major parts or features which were not disclosed in the listing.

  • You purchased three items from a seller but only received two.

An item is not Significantly Not as Described if it is materially similar to the seller's item listing description. Here are some examples:

  • The defect in the item was correctly described by the seller.

  • The item was properly described but you didn't want it after you received it.

  • The item was properly described but did not meet your expectations.

  • The item has minor scratches and was listed as used condition.

13.7 What items are not covered by PayPal's Protection for buyers?

PayPal's protection for buyers only applies to payments for tangible, physical goods that can be shipped. Payments for intangibles, services, custom made items, airline flight tickets, eBay classified advertisements, items prohibited under our Acceptable Use Policy or licenses and other access to digital content are not eligible under PayPal's protections for buyers.

13.8 Relationship between PayPal's protection programs and Chargebacks

Credit card chargeback rights, if they apply, are broader than PayPal's protection programs. Chargeback rights may be filed more than 45 days after the payment, may cover unsatisfactory items even if they do not qualify as SNAD, and may cover intangible items.

You may pursue a Dispute/Claim with PayPal, or you may contact your credit card company and pursue your chargeback rights. You may not pursue both at the same time or seek a double recovery. If you have an open Dispute or Claim with PayPal, and also file a chargeback with your credit card company, PayPal will close your Dispute or Claim, and you will have to rely solely on your chargeback rights.

If PayPal does not make a final decision on your Claim until after your credit card issuer's deadline for filing a chargeback, and because of our delay you recover less than the full amount you would have been entitled to recover from the credit card issuer, we will reimburse you for the remainder of your loss (minus any amount you have already recovered from the seller).