PayPal Buyer Protection Policy
PayPal Buyer Protection Policy
Effective date: December 11th, 2019
These are the terms of a contract between you and PayPal (Europe) S.à r.l et Cie, S.C.A., 22-24 Boulevard Royal, L-2449 Luxembourg (“PayPal”, “we” or “us”).
These terms apply to how PayPal Buyer Protection affects you as a payer or recipient (payment recipient) of a payment for a purchase. PayPal Buyer Protection is not a payment service.
The user agreement for the country where you are registered with PayPal as resident forms part of these terms. Capitalised words which are not defined in these terms are defined in that user agreement. As much as possible, these terms and the user agreement should be interpreted as a consistent whole. Where a conflict of interpretation arises, these terms override the user agreement to the extent of the conflict.
- a claim means a challenge to a payment that the payer files directly with PayPal, pursuant to these terms.
- a dispute means a dispute filed directly with PayPal in the Resolution Centre pursuant to these terms.
- not received or NR, when used to describe your purchase, means that you did not receive your purchase.
- significantly not as described or SNAD, when used to describe your purchase, has the meaning given in section 8 of these terms.
1 What is PayPal Buyer Protection?
PayPal Buyer Protection enables PayPal to make a final decision at its full and sole discretion on any problem raised by a buyer in respect of any purchase paid for using PayPal. The final decision may result in PayPal reimbursing the buyer for the amount of the payment made through PayPal for the purchase (up to the full price of the purchase and (where applicable) original postage costs) and the payment recipient bearing liability to PayPal for that reimbursement.
PayPal Buyer Protection is neither a product warranty nor a service warranty. No guarantees are given. PayPal Buyer Protection does not affect your statutory rights against the payment recipient. Please also consider section 2 below (Is PayPal Buyer Protection right for me?).
If you are a payment recipient, your liability under PayPal Buyer Protection may be covered by the <Seller Protection Programme>. Sometimes we may be able (but shall not be obliged) to waive your liability for the reimbursement for other reasons (at our full and sole discretion).
Whether you are the buyer or payment recipient, you acknowledge that the Services may be used as a method of payment for a wide and complex variety of types of purchases, both online and offline. Accordingly and notwithstanding anything otherwise in this Agreement, you agree that PayPal may (but shall not be obliged to) at any time and for any reason at its full and sole discretion and without liability:
- make a final decision on any problem with a purchase raised by a buyer with a PayPal account registered anywhere in the world (whether under the PayPal Buyer Protection policy or user agreement of the country of registration of that buyer’s PayPal Account or otherwise) in favour of the buyer or the payment recipient. The final decision will always be communicated in writing (which may be by email). In the event that PayPal makes a final decision on the problem in favour of the buyer or payment recipient, each party must comply with PayPal’s final decision; and
- waive the terms and conditions of coverage under PayPal Buyer Protection (whether stated in this Agreement or otherwise, including, without limitation, the conditions of reimbursement at section 4) at any time and for any reason, for the purpose of facilitating the resolution of any problem raised by a buyer relating to a purchase paid for using PayPal. As a non-exhaustive guide, this may include allowing reimbursement for disputes or claims raised outside of the timeframes set out in section 5 for certain purchases (typically purchases agreed to be delivered or performed outside of the timeframe set out in section 5), where we have reason to believe that the buyer did not have a reasonable opportunity within that timeframe to determine that there was a problem with that purchase.
PayPal is not obliged to reimburse you for any costs that you incur to comply with any of PayPal’s requests for cooperation for the purpose of resolving the problem (including, without limitation, costs that you incur to return a SNAD item to the payment recipient or another party as PayPal requests), although sometimes it may reimburse these costs.
If you sell or market to buyers in other countries, you should read the PayPal Buyer Protection policies of the countries in which your target buyers are based (the relevant PayPal Buyer Protection policies are available here and are also accessible via the “Legal” or “Legal Agreements” footer on most PayPal site pages) as these policies will apply to you as a payment recipient or seller.
2 Is PayPal Buyer Protection right for me?
The outcome of any decision made by PayPal under PayPal Buyer Protection might not always be suitable for your particular needs and you should carefully read these terms and consider your options before using PayPal to resolve a problem.
If PayPal is contacted to resolve a problem, PayPal may require you to take an irreversible action to resolve the problem, which might make it no longer practicable in the circumstances for you to resolve the problem in another way. For example, PayPal may require you to return the item to the payment recipient under section 6.
It may be more suitable for your particular needs and prospects to resolve your problem without involving PayPal. Below is a non-exhaustive list of ways of resolving your problem without involving PayPal.
- Resolve the problem directly with the payment recipient: Before contacting PayPal about a problem, you should contact the payment recipient directly to resolve the problem in accordance with the payment recipient’s return policy (if any) as stated on their sales listing, website or other sales literature. If you do this:
- the conditions for reimbursement at section 4 will still apply (including, without limitation, the timeframe for raising a dispute set out in section 5b). It is your responsibility to keep track of these deadlines; and
- there is a risk that the payment recipient may require you to take certain actions that could cause you to fail to meet the conditions for reimbursement at section 4 (for instance, if (whether as part of the payment recipient’s return policy or otherwise) the payment recipient directs you (and you proceed) to post an item that you purchased to an address that does not correspond with our record of the payment recipient’s address, we may determine that you have not posted the item back to the payment recipient in compliance with section 6).
If you are a payment recipient, as you may be liable for any reimbursement made by PayPal to the buyer, you acknowledge that it is in your interests to resolve directly with the buyer any problem with a purchase paid for through PayPal.
- Pursue your statutory/legal rights: You may wish to contact the European Consumer Centre (ECC-Net) at https://ec.europa.eu/info/live-work-travel-eu/consumers/resolve-your-consumer-complaint/european-consumer-centres-network_en for advice on your consumer rights and other legal rights (if you are a UK resident you can also contact the Citizens Advice Bureau by visiting https://www.adviceguide.org.uk).
- Pursue your card chargeback rights: You may pursue your chargeback rights with your card company or card issuer (if they apply), but if you do so at the same time as pursuing the resolution of your problem (whether through a claim or dispute) under PayPal Buyer Protection or if you seek a double recovery, PayPal may close your dispute or claim and/or hold you liable for the amount you have been reimbursed under PayPal Buyer Protection, and you will have to rely solely on your chargeback rights.
Whichever way you attempt to resolve your problem, it may involve you taking an irreversible action, which could harm your prospects of resolving your problem in another way, so please consider your options carefully.
3 What happens when PayPal makes a final decision in favour of the buyer…
If am a buyer? If PayPal makes a final decision on your problem (including, without limitation, a dispute or a claim) in your favour, PayPal may (but shall not be obliged to) reimburse you for the amount of the payment made through PayPal for the purchase (up to the full price of the purchase and (where applicable) original postage costs). Please see section 4 (Conditions for reimbursement) for details of the conditions of reimbursement.
If I am a payment recipient? If PayPal makes a final decision on the buyer’s problem in the buyer’s favour, you will be liable to PayPal for the amount that PayPal may reimburse to the buyer. PayPal shall not be obliged to refund your PayPal fees associated with the transaction or any other fees charged from your PayPal account by a third party associated with the transaction (such as the fees charged by a third party platform on which you make your sale). In some cases (for instance, if you lose a SNAD claim because PayPal has reason to believe that the item you sold is counterfeit) you might not receive the item back (for instance, a competent authority may take control and/or possession of the item or it may be otherwise irreversibly dealt with).
4 Conditions for reimbursement
You may be reimbursed under PayPal Buyer Protection for a problem with a purchase only if all of the following requirements are met:
- Your purchase is an eligible purchase. Purchases of most goods and services are eligible (including travel tickets, intangible items such as rights of access to digital content and other licences), except for the following transactions:
- purchases of real estate (including, without limitation, residential property);
- purchases of any interest in a business (including, without limitation, any items or services forming part of a business or corporate acquisition);
- purchases of vehicles (including, without limitation, motor vehicles, motorcycles, caravans, aircraft and boats), except for personally portable light vehicles used for recreational purposes like bicycles and wheeled hoverboards;
- payments on crowd-funding and/or crowd-lending platforms;
- purchases of custom made items (unless they are claimed to be Not Received);
- purchases of goods and services prohibited by the PayPal Acceptable Use Policy;
- purchases of industrial machinery used in manufacturing;
- purchases of items equivalent to cash (including, without limitation, stored value items such as gift cards and pre-paid cards);
- purchases of goods and services using Zong, Website Payments Pro or Virtual Terminal;
- Personal Transactions;
- gambling, gaming and/or any activity involving a chance to win a prize;
- payments made in respect of financial products and investments;
- payments to state-run bodies (except for state-owned enterprises) or traders acting on mandates received from state-run bodies;
- purchases of items which you collect in person, or arrange to be collected on your behalf (including at a retail point of sale) and which you claim to be Not Received;
- payments made in respect of gold (whether in physical form or in exchange-traded form); and
- PayPal Mass Payment transactions.
PayPal may at its sole discretion automatically close any dispute or claim you file which PayPal has reason to suspect is not related to an eligible purchase as outlined above.
- You sent the payment for your purchase from your PayPal Account to the payment recipient’s PayPal Account through the Send Money tab applicable to payments for goods and/or services on the PayPal website or app, or the payment recipient's PayPal checkout flow (including, without limitation, the PayPal Location Based Payments Functionality, if used by the payment recipient).
- Your problem is either that:
- Your purchase was not received / NR; or
- your purchase is significantly not as described / SNAD.
If your problem is a transaction that you did not authorise (including, without limitation, a duplicate or incorrect payment when using the PayPal Location Based Payments Functionality), please see section 12 and visit the PayPal Security Centre at https://www.paypal.co.uk/security. You can report the problem via the PayPal Security Centre or here.
- You have followed the process described in section 5 (How do I resolve my problem?).
- You have not received a recovery for that purchase from another source.
- Your eligibility is not otherwise suspended.
- PayPal has made a final decision on your problem in your favour.
5 How do I resolve my problem?
- Try to resolve your problem directly with the payment recipient
Use reasonable endeavours to resolve the problem directly with the payment recipient. If you are still unable to resolve the problem, go to the Resolution Centre and follow steps b, c and d.
- Open a dispute
Open a dispute within 180 days of the date on which you made the payment for the purchase you would like to dispute. We may refuse to accept any dispute that you open in relation to that purchase after the expiry of that period (please be aware of this if you agree a delivery time of an item or performance of a service with the payment recipient that falls after the expiry of that period).
- Escalate the dispute to a claim
If you and the payment recipient are unable to come to an agreement, escalate the dispute to a claim within 20 days of opening the dispute. It is your responsibility to keep track of these deadlines.
You must wait at least 7 days from the date of payment to escalate a dispute for a purchase Not Received (NR), unless otherwise stated by PayPal..
If you do not escalate the dispute to a claim within 20 days, PayPal may close the dispute and you will not be eligible for a payment under the terms of PayPal Buyer Protection.
In certain cases, PayPal may permit you to edit or change a claim after filing only if you wish to add further information or if you wish to change the reason of your dispute/claim from “Not Received” to “Significantly Not as Described”. Otherwise you may not edit or change a claim after filing it.
- Respond to PayPal’s requests in a timely manner
Once a dispute has been escalated to a claim, PayPal may make a final decision on your problem in favour of the buyer or the payment recipient. Before (and for the purpose of) making a final decision on your problem, PayPal may request your cooperation in resolving the problem under section 6.
6 Cooperating with PayPal to resolve the problem
Whether you are the buyer or the payment recipient, for the purpose of resolving the problem, PayPal may request and require you to (and you shall in a timely manner): (i) provide documentary evidence (at your own expense, unless PayPal agrees otherwise) to support your position (including, without limitation, proof of delivery, receipts, third party evaluations and police reports); and (ii) take any other action that PayPal specifies. If you refuse to comply with PayPal’s requests, PayPal may make a final decision in favour of the other party.
As a non-exhaustive guide, PayPal may request and require:
- the buyer to post back to the payment recipient, to PayPal or to a third party (as PayPal may direct) an item that the buyer claims is SNAD and to provide Proof of Delivery. Please take reasonable precautions in re-packing the item to reduce the risk of damage to the item during transit.
Proof of Delivery for tangible items means online documentation from a postal company that includes all of the following:
- A status of “delivered” (or equivalent) and the date of delivery.
- The recipient’s address, showing at least the city/county or postcode (or international equivalent).
Proof of Delivery for intangible items and services means any compelling evidence (as determined by PayPal) to show the sale was fulfilled, including but not limited to the following information:
- The date the item or service was provided.
- The recipient’s address (for instance, email/IP) where applicable.
- the payment recipient to accept back the item sent to it by the buyer and refund the buyer the full purchase price plus original postage costs. If the payment recipient refuses to accept an item sent back to the payment recipient by the buyer at PayPal’s direction), PayPal may award the claim in favour of the buyer, provided the buyer has provided satisfactory evidence to PayPal that the item was sent to the payment recipient at an address supplied to the buyer by PayPal during the claim process.
- the buyer to reasonably cooperate with PayPal to ensure the proper and safe disposal of an item and to provide evidence of its disposal.
- the payment recipient to present evidence to PayPal in a timely manner that the payment recipient delivered to/performed for the buyer the purchase as agreed with the buyer, even where the purchase is not eligible for PayPal Buyer Protection under section 4.a. If the payment recipient does not present such evidence in a timely manner, PayPal may find in favour of the buyer. If the payment recipient presents such evidence in a timely manner, PayPal may find in favour of the payment recipient even if the buyer claims to have not received the purchase.
If PayPal has reason to believe that returning an item that the buyer claims is SNAD to the payment recipient would result in a violation of applicable law, such as laws related to handling counterfeit items, PayPal may report the item to a competent authority. This may result in the authority taking control of and/or possession of the item from the buyer and the payment recipient might not receive the item back.
7 What if my purchase is not eligible for re-imbursement under PayPal Buyer Protection?
You may also look to resolve a problem directly with the payment recipient by filing a dispute through the PayPal Resolution Centre. To do so, you must file a dispute in the PayPal Resolution Centre within 180 days of the date on which you sent the payment. Once you have done so, you should attempt to resolve the dispute directly with the payment recipient. If your payment is not eligible under PayPal Buyer Protection, PayPal is not obliged to make a decision on the claim.
8 What is Significantly Not as Described (SNAD)?
- Your purchase is Significantly Not as Described if it is materially different from the last description of it that you received from the payment recipient before you paid for it (which, for exclusively online purchases, shall be taken to be the payment recipient’s description of the purchase in the relevant online listing) (“Purchase Description”). Here are some non-exhaustive examples:
- You received a completely different item. For instance, you purchased a book and received a DVD or an empty box or the software that you received was not the software that was sold to you.
- The condition of your purchase was misrepresented. For instance, the listing for an item said “new” and the item was used.
- Your purchase was advertised as authentic but is not authentic.
- Your purchase is missing major parts or features and the fact that these parts or features are missing was not disclosed in the listing.
- You purchased 3 items from a payment recipient but received only 2.
- Your purchase was damaged during postage.
- Your purchase is not Significantly Not as Described (SNAD) if it is not materially different from the Purchase Description. Here are some non-exhaustive examples:
- The defect in your purchase was correctly described by the payment recipient.
- Your purchase was correctly described but you didn't want it after you received it.
- Your purchase was correctly described but did not meet your expectations.
- The item that you purchased has minor scratches and was listed as used condition.
- An event you purchased tickets to was postponed.
9 No Double Recovery
You may not receive a recovery for a purchase under PayPal Buyer Protection if you additionally receive a recovery for that purchase directly from the payment recipient or another third party.
10 Event tickets
In certain cases, if you purchase a ticket or pay for the right to attend an event from a payment recipient who is a UK registered PayPal account holder (“Event”), all monies paid by you may be held by PayPal on trust for you, so that the beneficial interest in such monies remains with you until the performance of the Event in question.