PayPal expand protection for UK buyers and sellers

August 4, 2008

eBay UK have announced this morning that both buyers and sellers are to receive more protection when using PayPal on eBay.

Buyers will now be covered for items not received or significantly not as described for the full amount of their purchase; the current limit is £500.

Expanded seller protection will now be available for all sellers, not just PowerSellers. The current annual limit of £3,250 will be removed, so that sellers will have unlimited against chargebacks and reversals for unauthorised card use or non-delivery. Coverage is valid for the 190 countries in which PayPal operates, and there are no more “confirmed addresses”: sellers are covered so long as they post to the address provided on the eBay transaction page, and can provide a proof of delivery (with signature for transactions of £150 and above). There are more details for sellers in the expanded seller protection FAQs page.

The changes are effective from October 2008. This is the same announcement that was made for US customers back in June.

Written by Sue Bailey · Filed Under Paypal | Leave a Comment 

PayPal refuse risk leaving no buyer protection

July 30, 2008

When attempting to make a payment via PayPal earlier today, this message appeared stating the seller can’t currently accept payments through PayPal.

I’m guessing that either their account isn’t fully verified, or PayPal have put them on hold due to a security risk. I suppose I should be thankful to PayPal for protecting my money but I’m not - in reality they’re only protecting their own money leaving me to shoulder all of the risk.

None of the alternative payment options offered (credit card, cheque or postal order) qualify for buyer protection, buyers are only covered if they pay via PayPal. Buyer protection sounds great when bidding with a nice logo explaining you’re protected up to £500.00. It’s not quite so good when it comes to paying and you find that if you pay you won’t be covered at all.

I phoned PayPal and they definitely advised against giving out card details over the phone - their entire raison d’être is to keep my card details safe. Cheques and postal orders once cashed are pretty much impossible to reverse should the goods not arrive.

Faced with this situation what would you do? More importantly what kind of impression would this situation make on a new buyer who has been told countless times by eBay that PayPal is the safest way to pay online? Other forms of payment might be safe for the seller but with no buyer protection they sure don’t feel very safe as a buyer.

Written by Chris Dawson · Filed Under Paypal | 11 Comments 

PayPal expand protection for US buyers and sellers

June 19, 2008

PayPal have announced improvements to both buyer and seller protection for users in the US. The cap on buyer protection is being removed for most transactions, so that buyers have unlimited protection against items not received or significantly not as described, whatever the purchase price. Scott Thompson, PayPal’s President said “we’re providing protection whether a transaction costs $50 or $50,000.”

For US sellers on eBay.com, seller protection is being widened to include transactions in the 190 countries in which PayPal operates. Sellers will be covered against claims, chargebacks and reversals due to an unauthorised payment or an item that was not received. The coverage cap for this will also be removed.

The changes are due to be implemented this autumn.

Written by Sue Bailey · Filed Under Paypal | Comments Off 

PayPal buyer protection to increase

April 22, 2008

Carl-Olav Scheible of PayPal had some interesting comments regarding buyer protection, at Catalyst today.

When asked if PayPal in the UK would be increasing buyer protection cover upwards from the current £500 maximum he explained that the level of protection doesn’t influence buyers more buyers to use PayPal. Generally if a buyer is wary of spending online it doesn’t appear to make a difference if all or just part of their purchase is protected.

However the long term aim is to increase covereage, the first step will be to bring the £150 level up to match the £500 coverage, and from then on to increase the total coverage level which is expected to be between £2,000 and £10,000. We should see this in six - twelve months time.

Written by Chris Dawson · Filed Under Featured | 1 Comment 



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