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PayPal's Seller Protection Program
PayPal's Seller Protection Program
Last updated on January 26, 2026
What’s Eligible
If you sell a good or service to a buyer, you may be eligible for PayPal’s Seller Protection program, which terms and conditions are set forth herein and form part of the User Agreement. When it applies, PayPal’s Seller Protection program may result in you retaining the full purchase amount. PayPal determines, in its sole discretion, whether your claim is eligible for PayPal’s Seller Protection program based on the eligibility requirements, any information or documentation provided during the resolution process, or any other information PayPal deems relevant and appropriate under the circumstances. There is no limit on the number of payments eligible for PayPal’s Seller Protection program. By accessing the Transaction Details page in your PayPal account you can see transactions that may be eligible for protection under this program.
PayPal’s Seller Protection program may apply when buyer(s) claim that:
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They did not authorize, or benefit from, funds sent from their PayPal account (referred to as an “Unauthorized Transaction” claim), and the Unauthorized Transaction(s) occur in an environment hosted by PayPal; or
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They didn’t receive the item from you (referred to as an “Item Not Received” claim); provided, however, that Item Not Received claims that result from buyers filing chargeback claims with their issuers for card-funded transactions are not eligible for PayPal’s Seller Protection.
PayPal’s Seller Protection program may also apply when a transaction is reversed because of a successful chargeback by a buyer because they did not authorize the card-funded payment or when a bank funded payment is reversed by the buyer’s bank.
These terms describe PayPal’s Seller Protection program as it applies to you, but you should also be familiar with the Impact of various purchase protection processes on sellers.
Basic Requirements
To be eligible for PayPal’s Seller Protection program, all of the following basic requirements must be met, as well as any applicable additional requirements:
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The primary address for your PayPal account must be in the United States.
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The item must be a physical, tangible good that can be shipped, except for items subject to the Intangible Goods Additional Requirements. Transactions involving items that you deliver in person in connection with payment made in your physical store, may also be eligible for PayPal’s Seller Protection program so long as the buyer paid for the transaction in person by using a PayPal goods and services QR code.
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You must ship the item to the shipping address on the Transaction Details page in your PayPal account for the transaction. If you originally ship the item to the recipient’s shipping address on the Transaction Details page but the item is later redirected to a different address, you will not be eligible for PayPal’s Seller Protection program. We therefore recommend not using a shipping service that is arranged by the buyer, so that you will be able to provide valid proof of shipping and delivery.
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The shipping requirement does not apply to eligible transactions involving items that you deliver in person; provided, however, that you agree to provide us with alternative evidence of delivery or such additional documentation or information relating to the transaction that we may request.
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You must respond to PayPal’s requests for documentation and other information in a timely manner as requested in our email correspondence with you or in our correspondence with you through the Resolution Center. If you do not respond to PayPal’s request for documentation and other information in the time requested, you may not be eligible for PayPal’s Seller Protection program.