Does PayPal Have Buyer Protection?
As someone who’s dealt with shady transactions on PayPal, I’ve found solace in having some protection from their Buyer Protection program.
I’ll explain this protection, how it works, and how to use it.
Let’s fight an unfair transaction.
Key Takeaways
- Buyer Protection offers full refunds on qualifying orders up to $20,000.
- Qualifying orders fall under these categories: Significantly Not as Described or Item Never Received.
- Buyer Protection doesn’t protect buyers against fraudulent transactions.
- It doesn’t cost anything to receive Buyer Protection.
- You must file a dispute and potentially escalate it to a claim to receive the refund.
- PayPal requires you to mail the disputed item back to the seller at your expense.
Is PayPal Buyer Protection Worth It?
Of course, it’s worth it.
PayPal Buyer or Purchase Protection isn’t a service that you buy. It’s a “feature” that automatically applies to qualifying transactions.
PayPal will honor its Buyer Protection. So long as you (the customer) can prove that the merchant actually sent you an item that’s not as described or fake. Or that you never received your purchased item.
What Is PayPal’s Buyer Protection?
- Cost for Buyer Protection: $0
- Coverage: Up to $20,000
PayPal Buyer Protection (AKA Purchase Protection) is a program designed to protect you if something goes wrong with a sale.
This protection means you could get a full refund if the transaction was done through PayPal and if:
- You don't receive your item: The seller never ships your order, or it gets lost in transit.
- The item is different than described: It's the wrong item, it's missing major parts, it's broken or damaged, or it's a counterfeit.
How Much Protection It Offers
PayPal’s Buyer Protection will refund customers the entire purchase on an order up to $20,000. This coverage includes shipping costs.
Who’s Eligible?
You must meet the following qualifications to fall under PayPal’s Buyer Protection umbrella:
- Purchases eligible for Purchase Protection.
- You attempted to resolve your issue with the seller (through a dispute).
- Submit your dispute within 180 days of the transaction.
- Your PayPal account must be in good standing.
- You respond to PayPal’s requests within their specified timeframe.
So long as you don’t have a shady past on your PayPal account and file a dispute with the seller, you’ll meet almost all these requirements.
Let’s See How the Buyer Protection Process Works
Here’s how it works:
- Pay for your item with PayPal and ensure it's covered under the Buyer Protection policy (most tangible goods).
- If the item doesn't arrive or isn't as described, contact the seller first to try and resolve the issue.
- If you can't reach a solution with the seller, open a dispute in the PayPal Resolution Center within 180 days of your purchase.
- PayPal will look into your dispute and gather information from you and the seller.
- PayPal makes a decision based on the evidence. You'll receive a full refund if your claim is approved, including the original shipping cost.
Imagine you bought a brand new camera online using PayPal. The seller advertises it as having a 12x zoom lens. However, when you receive the camera, you will discover it only has a 3x zoom lens. This is different from what was described in the listing.
Thus, this would fall under PayPal’s Buyer Protection. From there, you open a dispute. If the dispute isn’t resolved, you escalate to a claim, which would pull PayPal into the conflict.
Summary: PayPal Buyer Protection covers you if an item isn't as described or never shows up. If the seller doesn't help, PayPal steps in to investigate and may give you a full refund.
Here’s What PayPal Purchase Protection Covers
PayPal will cover the following types of items under their Purchase Protection:
- Tangible goods: Most physical items you buy online are covered, such as clothing, electronics, furniture, books, and more.
- Some digital goods: Certain downloadable software, digital music, and ebooks.
- Services: Some services purchased through PayPal may be covered, such as event tickets or professional services.
Such items are covered so long they fall under one of the following situations [1]:
- Significantly Not as Described: You received a product that wasn’t what the merchant promised.
- Item Not Received: You paid for a product, but never received it.
Also, to receive the protection, you must file a dispute within 180 calendar days after finishing the transaction and making the payment.
What Is Not Covered
PayPal’s Buyer Protection doesn’t cover the following:
- Items that the seller described accurately
- Products or services that the seller can prove the buyer used
- Non-fungible tokens (NFTs)
- Gold
- Business investments
- Gambling and other activities that have an entry fee and offer a prize
- Payments to government agencies or third parties acting on their behalf
- Seller provided proof of delivery or shipment
- You collect the item in person
- Someone collects the item (in person) on your behalf
- Real estate
- Donations, tips, and crowdfunding
- Motorized vehicles
- Industrial machinery
- Card-present transactions
- Prepaid cards (e.g., gift cards)
- Money sent to friends or family
- Payments NOT made from PayPal accounts
- Payments are done using PayPal’s Payouts (formerly Mass Pay)
- Claims reported past PayPal’s deadline
- Custom-made products (e.g., 3D printed products)
- Other products that violate PayPal’s Acceptable Use Policy
After initiating a dispute, your seller may try to be sneaky and change the product’s description to claim that it was accurate.
Use tools like Internet Archive to access that website’s edit history and see if you can find a copy of the product description when you order it.
If you can, present a screenshot and a link to PayPal as evidence. This evidence will prove that the description significantly differed from what was described.
Starting a Buyer Protection Claim With PayPal
- How Long You Have to File a Dispute:some text
- Item Not Received transactions: 180 days after you paid for the order.
- Significantly Not as Described transactions: Whichever of the following is sooner:some text
- Within 30 days of the delivery date.
- Within 180 days of paying for your order.
You’ll first need to dispute your transaction. Since this wasn’t an “Unauthorized Purchase,” AKA fraud, you can’t automatically file a claim.
The dispute process is PayPal’s attempt to let the shopper and seller negotiate and find a solution before getting involved. You and the merchant have 20 days to resolve the dispute. Otherwise, PayPal will automatically close the dispute.
Here’s how to file a dispute:
- Access your PayPal account.
- Go to the Resolution Center (usually found under "Activity" or a similar tab).
- Click on Report a problem and select the transaction you want to dispute.
- Choose Dispute a Transaction.
- Select Item Dispute if your issue is related to the item (e.g., not as described or received).
- Provide a clear explanation of the problem and any supporting evidence (photos, communication with the seller, etc.).
- Submit your dispute.
Here’s a video explaining how to do the process on the PayPal app:
From there, PayPal will notify the seller and allow them to address your dispute. This can involve a refund, return, replacement, or another agreed-upon solution. Let’s say you and the merchant couldn’t agree on a solution.
Moreover, if your item never arrived or was not as described, you’ll need to escalate the dispute to a claim.
To escalate the dispute to a claim, you must wait at least 7 days after the payment date of your purchase.
Here’s how to do it:
- Select “Help”
- Return to the "Resolution Center" and find your open dispute.
- Click on "File a Claim" within the dispute details.
- Provide any additional information or evidence that supports your case.
- Submit your claim.
From there, PayPal will investigate the claim and review the evidence submitted by both parties. Once finished, they’ll make a decision. If it’s in your favor (the buyer), then PayPal will force the merchant to issue a refund.
However, you must mail the item back to the seller — possibly at your expense.
There’s a slight caveat to this.
IF the seller loses a Significantly Not as Described case due to the seller giving you a counterfeit item, you will not have to mail the item back to the merchant.
Can Merchants Respond to These Claims?
Merchants can respond to these claims and must provide evidence that the customer received the item or that the item is as described.
For instance, if they bought shipping insurance, they will receive proof of delivery, which could be used to counter your claim.
If you’re a merchant reading this post, it’s ideal that a customer goes through the claims and dispute processes instead of filing a chargeback.
Chargebacks cost more money, they can land you in chargeback monitoring programs and affect your reputation with card processors.
Whether PayPal Will Protect You if You Get Scammed
PayPal's Buyer Protection is designed to protect you in specific situations, but it doesn't cover all scams.
Here are some examples of scams that Buyer Protection may help you with:
- Fake Tracking Number: The seller provides a phony tracking number that shows no movement.
- Empty Box Scam: You receive a package, but it's empty or contains something worthless.
- Counterfeit Goods: You purchase a branded item (e.g., designer clothing, electronics) but receive a fake or knockoff version.
- Bait-and-Switch: The seller advertises a high-quality item, but sends you a lower-quality or different item.
- Broken or Damaged Item: The seller lists an item as "new" or "in good condition," but you receive a damaged product.
- Missing Parts: The seller fails to mention that essential parts of the item are missing.
- Misrepresented Description: The seller greatly exaggerates the features or condition of the item in the listing.
Even if your situation falls into one of these categories, the success of your claim depends on your ability to provide strong evidence of the scam.
Buyer Protection vs. Chargebacks
If PayPal, for some reason, doesn’t honor their Buyer Protection, or if you have a fraudulent transaction, you’ll need to file a chargeback.
However, you must file a chargeback with your bank or card network. PayPal doesn’t directly arbitrate chargebacks.
This process is more complex than disputes and claims and requires a decent time investment.
Here’s how chargebacks differ from Buyer Protection:
PayPal's process is often simpler and faster, but chargebacks may cover a broader range of issues.
If you're eligible for both, consider starting with PayPal's process for its convenience. If that doesn't work or your issue isn't covered, you can explore a chargeback through your card issuer.
FAQs
Can You Get Your Money Back on PayPal if You Sent It to the Wrong Person?
PayPal won’t refund you if you sent money meant for Family or Friends to the wrong person.
Will PayPal Refund Me if a Seller Doesn’t?
Yes, PayPal will refund you if the seller doesn’t. So long as you fall under their Buyer Protection, if the seller is unresponsive, and/or if you submit strong evidence.
Does PayPal Guarantee a Refund?
PayPal doesn't guarantee a refund in every situation.
Wrapping Up
If you didn’t receive your item or if it arrived or was much different than advertised, PayPal may refund you. So long as go through the dispute and claims processes.
What if they don't honor their Purchase Protection? Or what happens if you experience fraud? You'll need to file a chargeback outside of PayPal.
Learn what a chargeback is from one of our guides.
Source
- [1] PayPal: Buyer protection
