PayPal Enhanced Seller Protection is close to launch

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PayPal are evaluating Enhanced Seller Protection, to complement the Basic Seller Protection available to sellers today. The Enhanced Seller Protection would include features such as coverage for all losses including chargeback’s, non-receipt, damage in transit, significantly not as described and unauthorised purchases. Most importantly the seller would not be required to ship to confirmed addresses to qualify for protection, this will be especially attractive to those that ship internationally where PayPal is unable to confirm addresses.

This could be a great feature for some sellers, especially those for sellers in categories where losses are particularly prevalent such as mobile phones, CDs, DVD’s etc. Also many sellers are faced with the difficult decision whether to insist on signed for services or stand losses when often they suspect the buyer simply claims non-receipt of goods.

Although there would be certain requirements such as proof of posting sellers would no longer have to provide proof of delivery to qualify for Enhanced Seller Protection. Use of PayPal shipping which has just launched in the UK would be ample proof of shipping. In addition funds would not be placed on hold in the sellers account during an investigation but would be available to spend or withdraw.

Of course there is a downside in the form of an extra percentage charge to pay for Enhanced Seller Protection. Exactly what this percentage might be is uncertain at the moment, but many sellers could find it costs less than the additional £0.68 cost of Recorded Signed for service. It could make financial sense to pay a percentage to PayPal rather than purchase additional postage insurance.

Currently it is likely that a seller would have to opt in or out of Enhanced Seller Protection for all or none of their transactions. There is a possibility that they may be able to select the service for selected transactions only, but if this is introduced it would be at a higher rate than those who opt in for all transactions. For those that do opt for greater security the £3250.00 pa claim limit would be changed to a maximum claim limit per transaction with no annual cap on claims.

Offering better protection for sellers will keep PayPal at the forefront of online payment services. Others such as Google’s Checkout will have to up their game to stay competitive. Whilst many professional sellers will already have systems in place to combat fraud and mail losses it’s an important safety net which is likely to prove popular with those struggling to reduce risks in transacting online.

PayPal are currently surveying users to establish which levels of protection would be favoured in comparison to the fees that would be levied. Later this year, when Enhanced Seller Protection is released, sellers concerns about chargeback and fraudulent claims of non-receipt could be a thing of the past.

4 Responses

  1. I have a much safer way for sellers to get paid – bank transfer. Free to buyers and sellers in the UK, most of the EU and a few countries including Switzerland. Buyers would need to check the seller’s credentials rather than being lazy and relying on PayPal as at present.

  2. Good to see eBay are at last recognising how unfair the sellers get treated by rogue buyers at times. I hope this is more than jsut good news rumours and turns in to a genuine level of seller protection without too many unrealistic conditions attached.

  3. Wow! Is just goig to be for the UK? Hopefully this will be also for the US or is eBay/paypal using the UK as guinea pigs again to see if it works.

  4. Hi.

    When is this applicable.

    Sellers always lose versus dishonest buyers who regularly do scams via snad and item not received.

    Please remember, not everyone ships with tracking since it is more expensive.



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