Getting to know Seller Protection

Chargeback Protection is an opt-in risk product that helps eligible merchants reduce the risk of fraudulent credit or debit card transactions. We’ll help protect your Advanced Credit and Debit Card transactions from or “item not received” chargebacks, and once you submit the info we need, we’ll waive the chargeback fee and remove the hold on the dispute amount. Read the Terms and Conditions for Chargeback Protection.

This feature is only available for business accounts with Advanced Credit and Debit Card checkout.

Which merchants are eligible for Chargeback Protection?

To be eligible for Chargeback Protection, a merchant must have a PayPal business account and have enabled Advanced Credit and Debit Card checkout.

How can a merchant apply for Chargeback Protection?

Merchants can apply for Chargeback Protection from within their PayPal account. Simply click on 'Manage Risk and Fraud' in the Payment Preferences section within Account Settings and select Chargeback Protection. Terms apply.

How does Chargeback Protection work?

• We’ll help provide risk decision-making on all your Advanced Credit and Debit Card transactions and decline potentially fraudulent payments. If an approved transaction is later identified as fraudulent, it will be chargeback-protected once the info we need is submitted.
• We’ll monitor Advanced Credit and Debit Card checkout transactions
• We’ll review those transactions for risk of fraud
• We’ll waive any chargeback fees and remove the hold on the disputed amount if a transaction is later found to be “unauthorized” or “item not received” upon our review of the info requested from you.

How does a merchant end Chargeback Protection?

You can end Chargeback Protection anytime. There are no yearly caps on ​losses, no fixed duration,​ revenue requirements, or cancellation fees. Merchants simply need to click on “Manage Risk and Fraud” in the Payment Preferences section within Account Settings and select “No protections right now."

How much does Chargeback Protection cost?

• Plan - Chargeback Protection

• Fee* - 0.40% per approved transaction

*Fees are subject to change.

What info must a merchant provide in connection with an eligible chargeback dispute?

If a chargeback occurs, merchants must submit proof of shipment /delivery as requested by the Resolution Centre to qualify for Chargeback Protection.

What types of transactions are eligible for Chargeback Protection?

Chargeback Protection applies to PayPal Commerce Platforms Advanced Credit and Debit Cards (ACDC) checkout. Exclusions apply.

What types of chargebacks are eligible under Chargeback Protection?

Chargeback Protection is only offered for “unauthorised” and “item not received” chargebacks. You must still respond to these chargeback disputes in the PayPal Resolution Centre to get the benefits of Chargeback Protection.

What types of chargebacks are not eligible under Chargeback Protection?

All chargebacks other than “unauthorised” and “item not received”, such as “broken item”, “significantly not as described”, “refund not processed”, and “duplicate charge”, are not eligible for Chargeback Protection. You’re expected to respond as usual to these chargeback disputes in the PayPal Resolution Centre.

What are the differences between Chargeback Protection and Fraud Protection?

Chargeback Protection

• Chargeback Protection is a built-in, risk decisioning tool available to eligible PayPal merchants for a fee.
• PayPal uses risk models and analysis in real-time to accept or reject transactions based on their risk level.
• PayPal will waive any chargeback fees and will release the disputed amount to the merchant for any “unauthorised” or “item not received” chargebacks that may later occur upon receipt of the requested information from the merchant.

Fraud Protection

• Fraud Protection* is a built-in, fraud analysis tool provided to ACDC PayPal merchants at no rate.
• Merchants set risk rules and filters within the Fraud Protection tool, determining which orders to accept or reject.
• Merchants carry the liability for any chargebacks that may occur when using Fraud Protection.

*When you sign up for Chargeback Protection, we’ll automatically disable Fraud Protection on your account. You’ll no longer have access to the Fraud Protection dashboard if you are enrolled in Chargeback Protection.

Chargebacks happen when your customer disagrees with a credit card charge and asks the credit card provider for a refund.

Customers initiate chargebacks for a variety of reasons:

• An item is different from its description or is defective.
• An item hasn’t been received.
• A credit card charge isn’t recognised.
• A payment is processed multiple times.
• A payment is unauthorised.

You can learn how to avoid disputes and chargebacks on our website.

If a buyer files a claim, chargeback or reversal against you, we’ll place a temporary hold on the funds in your PayPal account. This is done to ensure that you’re aware of this and there are sufficient funds available to cover the full amount of the claim, chargeback or reversal.

To resolve the case, you need to submit the necessary documents required in the Resolution Centre. We’ll also need the following documents from you as proof of shipment:

• For an unauthorised transaction, proof of shipment is required.
• For items not received, proof of shipment or proof of delivery is required.

We'll review and determine whether the transaction meets the eligibility requirements for Seller Protection. If it does, we will lift the temporary hold on the funds and restore the funds to your account. Otherwise, the funds will be returned to the buyer’s account. A fee may apply in a chargeback case.

Learn more about Seller Protection in Australia.

With PayPal, you can enjoy a safer and easier way to send and receive payments for goods, services and more.

Shopping globally with peace of mind

Simply link a card to your PayPal account and you can start making payments in over 20 currencies. Instead of entering your card information for every transaction, you can now pay with just a few clicks without compromising your security. You can also withdraw funds into your bank account anytime. We use industry-leading anti-fraud technology and a dedicated team of risk experts to help keep your transactions safer.

Growing your sales from various channels

Select from our wide range of payment solutions to receive payments from buyers all over the world. Accept safer payments anytime, anywhere – through your own website, using PayPal Here in your storefront, or by simply emailing an invoice to your customers. Besides our expertise in payment security, our Seller Protection protects you from any losses arising from unauthorised payments and items not received on eligible transactions.

Find out more about how we protect you.