Paypal - Seller Protection - Lifting Limits - A Summary

cyberbob

OK Seller Protection on Ebay. (Yes it Exists)

I have had some time on my hands today, waiting for some auctions to finish and avoiding cleaning Cat Litter trays (I’ll have to do it though!)

I have realised that there are a few general questions that seem to come up about Paypal seller protection. Most of these questions are Reactionary (after the fact). A lot of problems can be avoided by being a bit more pro-active. I could not find this information in any other threads so thought I would put it together

There has been a few threads recently where Paypal have put money on hold for Sellers while they investigate. I thought I would clarify what Seller protection is available as far as I understand. Please feel free to add any mistakes I have made or any more information you have.

I am not a big Fan of Paypal (as I have been accussed of before) but I am not a fan of banks either but I need to use both so the best way to get the best out of them is to understand them and work within there procedures

Paypal even though they are not a bank act like one. There staff do not seem to know there own rules and you have to harass them and point out where they are wrong and what coverage you actually have at points. So if you have a problem do not take what they say at face value

I have in the past had my own problems with them and found the best way to deal with them is to constantly be on there backs any phonecalls find out who you are speaking to and follow up with an email repeating what was said in the phonecall and to whom you spoke.

Phone Number 08707 307 191

As a Seller no matter what you have to offer Paypal as an option. No arguments if you don't you won't last long on ebay. Also most buyers would rather pay this method anyway. Paypal is a business like a bank its business is money and the making of. As a Seller your best way to protect yourself from scam buyers and Paypal mismanagement is to understand what Paypals rules are what you are covered for and what you need to do. It is far better to do this before you get problems.

When Paypal brought in the Payments on Hold Policy they also increased Seller protection. So those people who complain about payments being held must realise that this enables us as sellers to have more protection through paypal.

Payments on Hold Summary

Why might my payments be held?

PayPal will hold payments in transactions where the vast majority of seller fraud occurs. Here are the most common instances in which a payment may be held:

* You have been on eBay less than six months and sell an item above £50.
* You have a feedback score of less than 98% and sell an item above £50.
* More than 5% of your transactions result in dissatisfied buyers*.
* You have an average Detailed Seller Rating (DSR) of 4.5 or less.
* You have received less than 20 Detailed Seller Ratings.
* You are listing your item in a higher-risk category.

Your payments will not be held if

* You have been an eBay member for more than 6-months, and
* Your total Feedback score is greater than 100, and
* Fewer than 5% of your transactions result in dissatisfied buyers*.

Or

* Your average DSR is greater than 4.5, and
* You have received more than 20 DSRs in the last 12 months, and
* Your buyer dissatisfaction percentage is less than 5%.

What will happen if my payment is held?

The amount held will show as "Pending" in a separate PayPal balance on your account page. You will still have access to all other funds in your PayPal account.

Your funds will immediately be released when one of the following occurs:

* The buyer leaves you positive feedback.
* 21 days pass without a dispute, claim, chargeback, or reversal filed on the transaction.

If you receive a dispute, claim, chargeback, or reversal on the transaction subject to the hold, PayPal may hold the payment in your account until the matter is resolved, even if the claim, chargeback or reversal is made after the hold is released.

I'm a new seller on eBay... will my payment get held?

If you are a new seller and have a record of good performance, you will receive your payment instantly in the vast majority of cases.

Link to Paypal Page HERE

Main Rules of Seller Protection

1. First you need to make sure the item is 'Eligible' for Seller Protection by checking your 'Transaction Details'. Log in to PayPal, go to your Account History and click on the 'Details' link next to the transaction

2. Retain online trackable proof of delivery, such as Royal Mail's Recorded Delivery. If you hand deliver an item or post it in any other way that cannot be tracked online, your transaction will not qualify for Seller Protection.

3. Post to the buyer's address provided in the 'Details' link in your account history.

4. For transactions with a value of £150 or more, you need to provide proof of signature from the recipient if the buyer claims that the item did not arrive.

4. Post the item within seven days of receiving payment. (This is where Ticket sellers have problems)

5. Only accept payments in full from a single PayPal account.

6. During a dispute process, respond to all PayPal enquiries within the given deadlines, as disputes need to be resolved within a specific time frame.

Link to Paypal Page HERE

As I have said in my experience and others some staff at Paypal do not seem to understand there own rules so be persistant.

Paypal Limits

The other thing that has been coming up a lot is Paypal limits. Specifically the infamous £1700 one. If you get these limits removed before you hit them an awful lot of stress and holds on your accounts can be avoided.

You can complete the steps and remove all your limits, as follows:

1. Log in to your PayPal account at www.paypal.co.uk
2. Click the 'View Limits' link on the ‘Account Overview’ page
3. Tick the box next to ‘Receiving Limit per year’ and click 'Lift Limits'
4. Follow the instructions to lift each one

Note: You can begin these steps at any time, however if all the steps are not completed and you reach the annual receiving limit of £1,700 then you will no longer be able to withdraw or send money, fund transactions or close your account until you complete the steps.

LINK TO PAYPAL PAGE

My advice to any seller get the £1700 limit removed as quick as possible. You may not think you will hit that limit, but you never know. Its a lot easier to do before than after.

WARNING - Paypal Seller protection is different for Non Ebay Purchases and the coverage is less LINK HERE

One other thing that I do my Paypal accounts are not linked to my everyday current or business accounts. I have accounts I specifically opened for Paypal that I keep funded. This means that if there is ever a Problem it minimises risks to my Bank Account. (Paranoia maybe, but it works for me) Online banking means transfer between accounts is easy and now normally within 2 hours.

If I have made any errors please point them out. I have provided links to the relavant Paypal pages.

I would rather that this didnt turn into a I hate paypal thread (there are enough of those and a few websites if you wish to have a really good rant), but I can’t control what others write. Paypal is a necessary evil understanding it will help you as a Seller and also means that if something does go wrong you will know your rights without having to Search everywhere

Bob