Benefiting from the merchant protection program

PayPal has implemented a merchant protection program in the two following cases:
  • An opposition or a cancellation has been made following an unauthorized payment.
    The payment must occur in PayPal environment.
  • An opposition or a complaint 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, one must meet the following criteria:
  1. Accept PayPal requirements via one's 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.
    In the Expert Back Office, each PayPal transaction contains a Paypal authentication tab within transaction details. This tab displays the Merchant protection reference with the value returned by PayPal.
    Three values are possible:
    • ELIGIBLE
      Merchant is protected by PayPal's Seller Protection Policy for unauthorized payments and Item Not Received.
    • PARTIALLY_ELIGIBLE
      Merchant is protected by PayPal's Seller Protection Policy for Item Not Received.
    • INELIGIBLE
      Merchant is not protected by PayPal's Seller Protection Policy for Item Not Received.
  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. 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.
  5. Accept a single payment via a PayPal account.
    Split payments or payments in installments are not covered by the protection.
  6. Have the possibility to provide PayPal with all required information or documents.

This protection applies regardless of the merchant's country, but there might be differences in PayPal requirements. For more information on merchant protection, see https://www.paypal.com/tc/webapps/mpp/ua/useragreement-full#9