The Paypal "saga". Why aren't my transactions covered for Paypal Seller Protection? If you are considering using Paypal be warned this is the kind of rigmarole you will have to go through if you need to deal with their Customer Services. I've gone through this pain so you don't have to!

Here is the initial response from Paypal to my enquiry about the problem of a reversed payment, on their web form:

Thank you for contacting PayPal. I appreciate the opportunity to assist you in relation to the payment you received (Transaction ID ############). We have conducted an investigation into the legitimacy of these funds and unfortunately, the funds you received were found to be unauthorised. It was therefore determined that the most appropriate action was to return the funds to their original source. Due to data protection reasons we're unable to give you the specific reason why we're reviewing a payment, especially as it relates to the other user’s account, however it could be one of the following reasons: • Funds obtained by fraudulent means • Stolen credit card details • Stolen bank account details • Unauthorised use of a PayPal account • Buyer's bank denied the transaction I have reviewed this transaction and I regret to inform you this, but this transaction is ineligible for Seller Protection, hence we cannot extend to you the coverage of the said protection. In this regard, you may contact the buyer directly to find out what has happened, as it may simply be that their bank denied the transaction and they will need to process the payment again. Alternatively, you may also contact your local police in order to proceed with the investigation. In accordance with our privacy policies, PayPal will provide the relevant information on this case to the police. We value your business and regret that you've had this experience. Please do not hesitate to contact us should you require further assistance.

Thank you for your response. As I had no reply from yourselves I contacted the customer. They had put a stop on the card linked to their Paypal account because of a suspected fraudulent use elsewhere. They have now supplied the funds again outside of Paypal. I would have been grateful of a notification from yourselves prior to taking back the money however - if potentially any payment could be rescinded, perhaps even as part of a scam (I understand this could be done up to 180 days later). This makes me very wary of taking Paypal for future transactions, especially larger ones. For a couple of days the customer had both my goods and his money back which made me feel very uncomfortable. I would be grateful if you could tell me why this transaction was not covered for seller protection and what I would need to do to make it eligible in the future.

Thanks for contacting PayPal. We received notification that the transaction sent to you was funded by a potentially fraudulent source. This means the funds may have originated from a bank account, credit card, PayPal account, or another source reporting unauthorized activity. In the event we receive notification that a transaction is fraudulent, we are obligated to place a temporary hold on all involved funds until the validity of the transaction can be verified. If the funds are found to be fraudulent, we are required to return the funds to the legitimate owner. PayPal uses state-of-the-art technology to help prevent fraud, and our expert staff monitors transactions 24/7. Although our system is designed to detect fraud, we also rely on consumers to notify us if their information has been compromised. PayPal can not control when fraud is reported to us, therefore, it is not possible for PayPal to prevent all types of fraud from occurring. To help protect you against potential fraud, PayPal offers a free Seller Protection Policy. This policy protects sellers from chargebacks filed for fraudulent funds or false claims of non-receipt of merchandise. For the Terms and Conditions of the Seller Protection Policy, click the "Legal Agreement" link at the bottom of any PayPal webpage and click "User Agreement". Please let me know if you need further assistance.

Thank you for your email. From reading the terms it seems that I may not be eligible for seller protection because my buyers' transaction details are coming through without a postal address. I have challenged some of them about this and they are telling me that they do indeed have a Paypal registered address on their account. Please can you confirm if this is the reason why I am not eligible for seller protection, and please tell me what I should tell my buyers to do, in order to record a valid address and so that it appears on the transaction details for a purchase. Looking at several recent transactions, none of them have an address displayed.

Thank you for contacting PayPal. I will be happy to assist you with your concern regarding Seller Protection. Please excuse the delay in our reply; we are dealing with an unusually large number of email enquiries at the moment. Rest assured that we do care about your business and are working as hard as possible to address all of your concerns promptly. We appreciate your patience regarding this matter. I have checked on the transactions and all of your recent transactions appear to be ineligible for Seller Protection. I would need more information to check for the reason. What items are you selling? Do you sell the items at your own site? Once we have the said information, we can detect the reason why the transactions are not covered and we can advise you on how to proceed. Thank you for choosing PayPal, if you need further assistance, please do not hesitate to contact us again.

I sell all the items from my own site. They are model cars and accessories, sold from a UK address mainly to other UK addresses and some abroad. I understand that if I sell on my own site, as long as I post to the Paypal registered address and obtain proof of delivery, I should be covered by seller protection, so please advise what I am doing wrong.

Thank you for contacting PayPal in relation to your query for Seller Protection Programme. The reason why you are Ineligibel for Seller Protection is because you are selling vehicle. Please be advised that motor vehicles, cars, boats, or planes are not covered by Seller Protection since we cannot track their delivery online. Please let me know if you need further assistance.

[I'm sure you can imagine the annoyance at receiving the above reply, having waited a day for each one!]

No you misunderstand. These are TOY cars. Not real ones. They should be covered. Please can you advise.

Regarding your question: PayPal offers Seller Protection for qualified transactions on claims, chargebacks, or reversals based on: A Chargeback or Reversal was issued against you for the reason of an "Unauthorised Payment"; or A Chargeback or Claim was issued against you for the reason of "Item Not Received". PayPal seller protection does not apply to: Claims, chargebacks and/or reversals for Significantly Not as Described (SNAD). Items that you deliver in person.. Seller Protection Availability: Buyers who send a PayPal payment for a item purchased via eBay worldwide and everywhere PayPal is accepted; and Buyers who send a PayPal payment for an item purchased outside of eBay from the UK, US or Canada. Protection Coverage: There is no annual limit on protection. PayPal will provide protection for the full amount of the eligible claim, chargeback, or reversal and waive the Chargeback Fee, if applicable. Eligibility Requirements: Ship the item to the shipping address on the "Transaction Details" page. Follow the postage requirements listed in the User Agreement. Respond to PayPal's requests for documentation and other information in a timely manner. The transaction must be marked eligible or partially eligible for seller protection on the "Transaction Details" page. The item must be a physical, tangible good that can be posted. Your primary residence, as listed in your PayPal Account, must be in the United Kingdom. You must not charge a surcharge for accepting PayPal. For the Terms and Conditions of Seller Protection, click the "Legal Agreement" link at the bottom of any PayPal webpage and click "User Agreement". It is my pleasure to assist you. Thank you for choosing PayPal.

None of your responses so far have been at all helpful. Please stop sending stock replies and let me know why my specific items are not covered by Seller Protection. I have already been sent the stock reply about reading the Paypal agreement two replies ago. We are going round in circles. Please understand the following. I do not see any buyer addresses on my Transaction Details page. But the buyers inform me that they DO have registered Paypal addresses. These addresses are not showing on my transaction details. The Transaction Details page therefore says "not eligible". Otherwise as far as I can see I DO comply with all the other requirements. Please tell me, for example, why Transaction ID ############ was not covered. My transaction details say "Payments without a postal address are not covered by PayPal's seller protection policies and programs." I contacted the buyer and he confirms he DOES have a registered Paypal address - so why did it not come through on my transaction details. What has he failed to do, to enable his address to come through with the transaction?

[Look out, here comes the stock reply again...]

Thanks for contacting PayPal. I understand that you are inquiring about the payment you received which shows as ineligible for Seller Protection. Please be informed that when you list the item on eBay, the system will verify if this transaction will be eligible for seller protection. PayPal offers Seller Protection for qualified transactions on claims, chargebacks, or reversals based on: A Chargeback or Reversal was issued against you for the reason of an "Unauthorised Payment"; or A Chargeback or Claim was issued against you for the reason of "Item Not Received". PayPal seller protection does not apply to: Claims, chargebacks and/or reversals for Significantly Not as Described (SNAD). Items that you deliver in person.. Seller Protection Availability: Buyers who send a PayPal payment for a item purchased via eBay worldwide and everywhere PayPal is accepted; and Buyers who send a PayPal payment for an item purchased outside of eBay from the UK, US or Canada. Protection Coverage: There is no annual limit on protection. PayPal will provide protection for the full amount of the eligible claim, chargeback, or reversal and waive the Chargeback Fee, if applicable. Eligibility Requirements: Ship the item to the shipping address on the "Transaction Details" page. Follow the postage requirements listed in the User Agreement. Respond to PayPal's requests for documentation and other information in a timely manner. The transaction must be marked eligible or partially eligible for seller protection on the "Transaction Details" page. The item must be a physical, tangible good that can be posted. Your primary residence, as listed in your PayPal Account, must be in the United Kingdom. You must not charge a surcharge for accepting PayPal. Following the Seller Protection Policy is completely voluntary. However, if a seller chooses to engage in transactions not covered by the Seller Protection Policy, the seller assumes the risk associated with the transaction, as well as any potential liability. To learn the specific terms and conditions of the Seller Protection Policy, simply click on 'Legal Agreement' located at the bottom of any PayPal webpage and then go to 'User Agreement'. Thank you for your time.

My enquiry doesn't relate to an Ebay sale, it was for an item sold on my own site. This is the third time I have been sent virtually the same answer, please can you tell me why this specific sale was not covered?

Thanks for contacting PayPal. I appreciate the opportunity to assist you with your questions. The Seller Protection Policy (SPP) is similar to a form of insurance offered on selected payments received into a seller?s PayPal account. Like any insurance it is offered on condition that certain eligibility requirements are met by the seller. SP eligibility is assigned on a transaction by transaction basis. Not every transaction will be eligible for coverage Eligibility is assigned at the time of the payment. Seller need to check each payment as it enters their account to see if it?s eligible. In addition, sellers must meet a set of selling criteria to be covered in the even of a problem. These criteria are outline in Seller Protection Policy in User Agreement section 11The maximum payout under SPP is £3,250.00 GBP per year For transactions of ?.00GBP +, the seller needs to provide proof of receipt (signed or otherwise acknowledged by the buyer) in addition to postage and tracking information Seller Protection is only available on transactions within the USA, Canada and the UK. If you have your own website or using eBay for listing same thing applies. As what was provided to you before on how you can be qualified. You will need to follow the guidelines to be covered. Thank you for your time.

OK - it seems that you are unable to tell me why specific transactions are not covered. Even though I comply with all the requirements. And even though the buyer has a registered address. It seems my only option to avoid any risk is not to use Paypal and close my account. Unless someone can tell me why specific transactions, which meet all the criteria, are not covered, then that is what I will have to do.

Thank you for contacting PayPal in relation to the reversed payment from your account. I understand that a payment has been reversed and this disqualifies you for the Seller Protection Program. The reason for this matter is that the transaction itself is not eligible. When you receive payment from your buyers, always make sure that the address shows on your transaction details as confirmed and your Seller Protection should show as eligible. Eligibility for the Seller Protection depends on the transaction. So this means that some items may qualify and some may not. Since that on your transaction details, I see that you are not qualified, we can not cover you for the amount reversed. Please contact us if you need further assistance.

OK - one last try... 1. Have a Verified Premier or Business account YES, I HAVE SUCH AN ACCOUNT. 2. Post to the confirmed address on the Transaction Details page This confirmed address is displayed on the Transaction Details page and the payment is marked as eligible for the Seller Protection THIS IS THE PROBLEM - THE BUYER'S REGISTERED ADDRESS IS NOT SHOWING ON MY TRANSACTION DETAILS - WHY? 3. Timely postage EVERYTHING IS POSTED SAME DAY 4. Retain reasonable proof-of postage that can be tracked online EVERYTHING IS SENT BY A TRACKED MAIL SYSTEM 5. Send tangible goods ALL MY GOODS ARE TANGIBLE 6. Only accept payments in full from single PayPal accounts ALL PAYMENTS ARE SINGLE PAYMENTS FROM A SINGLE ACCOUNT 7. Do not impose an additional charge on the buyer NO ADDITIONAL CHARGES ARE IMPOSED 8. Timely response to all PayPal inquiries I RESPOND AS QUICKLY AS I CAN 9. For transactions equal to £150.00 GBP or more in value, the seller needs to provide proof of receipt (signed or otherwise acknowledged by the buyer) in addition to postage and tracking information. YES THE MAIL SYSTEM WE USE ARRANGES THIS. PLEASE NOTE THAT I COMPLY WITH ALL THE REQUIREMENTS THAT I AM ABLE TO. THE FACT THAT THE BUYER'S ADDRESS DOES NOT COME THROUGH ON MY TRANSACTION DETAILS IS NOT A FAULT AT MY END BUT A PROBLEM WITH PAYPAL. PLEASE CAN YOU TELL ME WHY, IN THE CASE OF THE TRANSACTION MENTIONED PREVIOUSLY, HIS REGISTERED ADDRESS DID NOT COME THROUGH, SO I CAN ADVISE HIM IF HE NEEDS TO CHANGE HIS ACCOUNT SETTINGS, FOR EXAMPLE.

Thank you for contacting PayPal. I am willing to assist you in relation to the address that should be confirmed so that you will be eligible for Seller Protection Policy. Please be informed that to be eligible for the Seller Protection Policy, the buyer's address should be confirmed. You can see the information of the confirmed address in the History log by click the 'Details' on the transaction. If you will purchase item you will not be able to see if your address is confirmed on the Transaction details, you need to check it to your Profile page by clicking the credit/debit card under Financial Information. We appreciate your patience and understanding. Should you have any further inquiries, please don't hesitate to contact us. Thank you for choosing PayPal.

Thank you for your email. You say: "always make sure that the address shows on your transaction details as confirmed and your Seller Protection should show as eligible." Please can you tell me how to ensure the buyer's address appears on the transaction details. If I buy from someone with a registered address presumably it will show. And if I buy from someone WITH a registered address, why does it NOT show?

PS: Today I have received a further order paid by Paypal, transaction ID ############. Again the order has come through as ineligible on the transaction details. Please can you advise precisely why this is. Again no address is shown. If you cannot offer seller protection for this transaction I will have to refund the payment and ultimately there will be little point in my continuing to offer Paypal in my store.

[Here comes that stock reply again...]

Thank you for contacting PayPal in relation to the payment that you received. I have reviewed your account and it shows that indeed your Buyer did not supply a shipping address and other than that you were also ineligible for Seller Protection. In cases like this, as a precaution, it would be better that you do not send the item to the said Buyer than take the risk of losing your item and the money. I understand that you are quite worried about this, but please be reminded that our Seller Protection is similar to a form of insurance offered on selected payments received into a seller?s PayPal account. For your future reference, below are the guidelines about Seller Protection: The requirements for SPP are: 1. The seller has a Verified Premier / Business account. 2. The seller posts to the confirmed address listed on the Transaction Details page. 3. The payment is marked as ?Eligible? for Seller Protection on the Transaction Details page of the payment. 4. The seller posts the item within 7 days of receiving the payment. 5. The seller can provide reasonable proof-of-delivery which can be tracked online: (I) this tracking documentation must show that the seller shipped to the address listed on the Transaction Details page (ii) For transactions greater than £150, the seller also needs to provide an online proof-of-receipt in the form of a signature from the recipient. 6. The goods in question are tangible. Virtual items are not covered. 7. Payment for the goods was made in full from one PayPal account only. 8. The seller does not surcharge the buyer. 9. The seller co-operates in resolving disputes by responding to PayPal?s requests for information within 10 days. Please let me know if you need further assistance.

Thank you I think the confusion is finally starting to clear. Can you just finally confirm to me, what I must ask my customers to do. What steps do they have to take. Is it just a case of entering an address in their profile, or is it more complicated than that? I am not aware that there are any other reasons why I would not be eligible for protection. Is there anything else I, personally, should have done in respect of that latest transaction, to be covered by protection?

Thank you for contacting PayPal in relation to our Seller Protection Policy. The Seller Protection Policy is based evaluated on the basis of the information that the seller supplied when making a payment to you. This is usually reliant on the level of verification they have completed within their account. As a seller, if you receive a payment that is not covered by Seller Protection it is your choice if you wish to go ahead with the payment. If you do so, and the funds are reversed for fraud related reasons, you will not be insured through PayPal. Otherwise, you may issue a refund to the buyers. Please let me know if you need further assistance.

Thanks for your email, I take it that "evaluated on the basis of the information that the seller supplied" should read "evaluated on the basis of the information that the buyer supplied". It would seem, if this is correct, that if the buyer chooses not to verify their address, then for me to send goods to them is very risky. In the circumstances it would probably not be advisable for me to continue to offer Paypal except for perhaps very small sums, as it seems that none of my customers have verified their addresses.

[Must be time for another reminder of the stock reply...!]

Thanks for contacting PayPal. I appreciate the opportunity to assist you with your questions. It is indeed very risky on the seller's end to send an item to an unconfirmed address. If this is the case, I would personally suggest for you to take in to consideration section 11 of PayPal's User Agreement about Seller Protection Policy. The following terms are effective for transactions made on or after 10/31/08. To view the protection terms and conditions for transactions made prior to 10/31/08 see Exhibit ?A? (under section 11.10) below. 11.1 What is PayPal seller protection? Protection for Claims, Chargebacks, or Reversals based on the following reasons: a. Unauthorized Payment b. Item Not Received Seller protection is available for transactions with buyers everywhere PayPal is accepted. Seller protection does not provide protection for Significantly Not as Described (SNAD) Claims, Chargebacks, or Reversals or for items that you deliver in person. 11.2 How much protection is provided by PayPal seller protection? PayPal will protect you for the full amount of the eligible Claim, Chargeback, or Reversal and waive the Chargeback Fee, if applicable. There is no annual limit on protection. 11.3 What happens when a buyer files a Claim, Chargeback, or Reversal? PayPal will place a temporary hold on the funds in your account to cover the full amount of the Claim, Chargeback, or Reversal. If PayPal determines that the payment is covered by seller protection, we will release the hold and restore your access to the funds. If the payment is not eligible for seller protection, PayPal will remove the funds from your account and return the payment to the buyer. In addition, you will be responsible for PayPal?s Chargeback Fee, if applicable. 11.4 What are the eligibility requirements for PayPal seller protection? You must meet all of these requirements to be covered: 1. Ship the item to the shipping address on the ?Transaction Details? page. a. You may access the ?Transactions Details? page by logging into your PayPal Account, selecting ?History? and then selecting ?Details? for the transaction. 2. Follow the shipping requirements described below. 3. Respond to PayPal?s requests for documentation and other information in a timely manner. 4. The transaction must be marked eligible or partially eligible for seller protection on the ?Transaction Details? page. a. If it is marked eligible, protection for both Unauthorized Payments and Item Not Received will apply. If it is marked partially eligible, protection for only Item Not Received will apply. b. Items sold on eBay will be marked eligible even if the shipping address is marked unconfirmed. Generally, items sold on websites other than eBay will be marked eligible if the shipping address is marked confirmed and partially eligible if the shipping address is marked unconfirmed. 6. The item must be a physical, tangible good that can be shipped. 7. Your primary residence, as listed in your PayPal Account, must be in the United States. Should you have any more queries, please do not hesitate to contact us by phone at 08707 307 191 or send us an email by clicking the 'Contact Us' link on any PayPal webpage and we will be more than glad to assist you regarding your concerns. It is my pleasure to assist you. Thank you for choosing PayPal.

Thanks, I am almost clear on this. Can you confirm, that the only reason this particular transaction was not covered, was because the buyer provided an unconfirmed address? Or would there have been an additional reason?

Thanks for contacting PayPal in relation to Seller Protection Policy. I appreciate the opportunity to assist you with your questions. Having reviewed your account and the transaction in question it shows that it did not meet with one criteria of Seller Protection Policy. To be eligible for the Seller Protection Policy, the policy guideline must be followed: Posting to the confirmed address on the Transaction Details page This confirmed address is displayed on the Transaction Details page and the payment is marked as eligible for the Seller Protection. To learn the specific terms and conditions of the Seller Protection Policy, simply click on 'User Agreement' located at the bottom of any PayPal webpage. Please let me know if you need further assistance.