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Subscribing to the merchant protection program

PayPal offers a merchant protection program in the following cases:
  • An objection or a cancellation has been made following an unauthorized payment. The payment occurred in a PayPal environment.
  • An objection or claim has been filed for an unreceived object.

In both cases, PayPal refunds the total amount to compensate for the damage suffered, provided that the conditions are met.

In order to benefit from the protection program, you must:
  1. Accept PayPal requirements on your account (the right to suspend accounts and/or eligibility in case of identified risk).
  2. File a complaint for a transaction marked as eligible or partially eligible in the transaction details section of your account.

    The status of transaction’s eligibility to merchant protection is also included in the Expert Back Office transaction detail.

  3. Be able to provide proof of deposit (in case of a tangible item) or proof of delivery (in case of an intangible item or service).
  4. Have transmitted shipping details in the payment request.
  5. Have transmitted shopping cart details in the payment request.
  6. Ship the order to the shipping address specified in the transaction details.
     Hand-delivery and shipping to another address are not covered by the protection.
  7. Accept a single payment via a PayPal account.
     Split payments or payments in installments are not covered by the protection.
  8. Have the possibility to provide PayPal with all required information or documents.

The protection is not automatically attributed to all merchants. Go to the PayPal website for more information.

The protection applies regardless of the merchant’s country, but there might be differences in PayPal requirements. See: https://www.paypal.com/tc/webapps/mpp/ua/useragreement-full#9

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