PayPal is preparing to beef up its Seller Protection scheme to reduce the risk of unauthorised transactions or buyers claiming their purchases never arrived.
Starting on 11 October, PayPal will provide sellers with additional protection against fraud: "If you receive an unauthorised payment or a buyer claims they never received their item from an eligible sale, we'll reimburse you for the full payment amount", reads the company's website.
The expanded Seller Protection scheme requires sellers to accept payment to their Australian PayPal accounts, to ship the item to the address specified by the buyer, and to have proof of shipment (paper or electronic, showing the date of dispatch, the shipper's acceptance, and at least the postcode of the delivery address).
Only physical goods are covered by Seller Protection, and items picked up or personally delivered are excluded, along with gift certificates and vehicles. There are some other exclusions, so if you accept PayPal payments it is worth reading the summary of the amended user agreement.
PayPal is offering the expanded protection with no change to fees. Seller Protection is automatic as long as the conditions are met and the seller has not been suspended from the scheme (eg, because of a perceived "increased risk" associated with the account).
The managing director of PayPal Australia, Jeff Clementz, suggested the expanded protection will be beneficial to retailers seeking to address the export market as well as those who only do business locally.