10. Your Liability - Actions We May Take.
10.1 Your Liability. You are responsible for all Reversals, Chargebacks, Claims, fees, fines, penalties and other liability incurred by PayPal, a User, or a third party caused by or arising out of your breach of this Agreement, and/or your use of the PayPal Services. You agree to reimburse PayPal, a User, or a third party for any and all such liability.
Liability for PayPal Claims. If you are a Seller and PayPal makes a final decision that you lose a Claim filed directly with PayPal, you will be required to reimburse PayPal for your liability. Your liability will include the full purchase price of the item and original shipping cost (and in some cases, you may not receive the item back). You will not receive a refund on your PayPal fees. PayPal Seller protection may cover your liability, see section 11 below.
If you sell to a buyer and the buyer files a Significantly Not as Described (SNAD) Claim, you will generally be required to accept the item back and refund the buyer the full purchase price plus original shipping costs. You will not receive a refund on your PayPal fees. If you lose a SNAD Claim because the item you sold is counterfeit, you will be required to provide a full refund to the buyer and you will not receive the item back (it will be destroyed).
10.2 Temporary Holds for Disputed Transactions. If a User files a Claim, Chargeback or Reversal on a payment you received, PayPal may place a temporary hold on the funds in your Account to cover the amount of the liability. If you win the dispute or the transaction is eligible for PayPal Seller protection, PayPal will lift the temporary hold. If you lose the dispute, PayPal will remove the funds from your Account. This process also applies to claims that a buyer files directly with eBay through the eBay resolution process if your Account is your reimbursement method for buyer claims.
10.3 Reimbursement for Your Liability. In the event that you are liable for any amounts owed to PayPal, PayPal may immediately remove such amounts from your Balance. If you do not have a Balance that is sufficient to cover your liability, your Account will have a negative Balance and you will be required to immediately add funds to your Balance to eliminate the negative Balance. If you do not do so, PayPal may engage in collection efforts to recover such amounts from you.
10.4 Actions by PayPal. If we have reason to believe that you have engaged in any Restricted Activities, we may take various actions to protect PayPal, eBay, other Users, other third parties, or you from Reversals, Chargebacks, Claims, fees, fines, penalties and any other liability. The actions we may take include but are not limited to the following:
We may close, suspend, or limit your access to your Account or the PayPal Services (such as limiting access to any of your Payment Methods, and/or your ability to send money, make withdrawals, or remove financial Information);
We may contact Users who have purchased goods or services from you, contact your bank or credit card issuer, and/or warn other Users, law enforcement, or impacted third parties of your actions;
We may update inaccurate Information you provided us;
We may refuse to provide the PayPal Services to you in the future;
We may hold your funds for up to 180 days if reasonably needed to protect against the risk of liability; and
We may take legal action against you.
PayPal, in its sole discretion, reserves the right to terminate this Agreement, access to its website, or access to the PayPal Services for any reason and at any time upon notice to you and payment to you of any unrestricted funds held in custody for you.
10.5 Account Closure, Termination of Service, or Limited Account Access. If we close your Account or terminate your use of the PayPal Services for any reason, we will provide you with notice of our actions. If we limit access to your Account, we will provide you with notice of our actions and the opportunity to request restoration of access if appropriate.
10.6 eBay Item Hold. PayPal, in its sole discretion, may place a hold on a payment you receive for an eBay transaction when PayPal believes there may be a high level of risk associated with the transaction. If PayPal places a hold on your payment, it will show as "pending" in your Account.
10.7 Reserves. PayPal, in its sole discretion, may place a Reserve on funds held in your Premier or Business Account when PayPal believes there may be a high level of risk associated with your Account. If PayPal places a Reserve on funds in your Account, they will be shown as “pending” in your PayPal Balance. If your Account is subject to a Reserve, PayPal will provide you with notice specifying the terms of the Reserve. The terms may require that a certain percentage of the amounts received into your Account are held for a certain period of time, or that a certain amount of money is held in reserve, or anything else that PayPal determines is necessary to protect against the risk associated with your Account. PayPal may change the terms of the Reserve at any time by providing you with notice of the new terms.
11. Protection for Sellers.
11.1 PayPal Seller Protection.
PayPal Seller protection is protection we provide Sellers from Claims, Chargebacks, or Reversals that are based on
Unauthorized Transaction or
Item Not Received
Seller protection is available for eligible payments from buyers in any country.
11.2 Scope of Protection.
PayPal will protect you for the full amount of the eligible payment and waive the Chargeback Fee, if applicable. There is no limit on the number of payments for which you can receive coverage.
11.3 Eligibility Requirements.
To be eligible for Seller protection, you must meet all of the basic requirements listed below; plus, you must meet the Item Not Received requirements listed below to be covered for Item Not Received protection and you must meet the Unauthorized Transactions requirements listed below to be covered for Unauthorized Transaction protection.
Basic Requirements:
You must ship the item to the shipping address on the Transaction Details Page.
You must respond to PayPal’s requests for documentation and other information in a timely manner.
The item must be a physical, tangible good that can be shipped.
Your primary residence, as listed in your Account, must be in the United States.
Item Not Received Additional Requirements:
The payment must be marked “eligible” or “partially eligible” for Seller protection on the Transaction Details Page.
You must have a Proof of Delivery as described below.
You must ship the item within 7 days of receipt of payment. Or, if the payment is for pre-ordered or made-to-order goods, shipment is required within the timeframe specified in your item listing.
Unauthorized Transactions Additional Requirements:
The payment must be marked “eligible” for Seller protection on the Transaction Details Page.
You must have a Proof of Shipment or a Proof of Delivery.
11.4 Proof of Shipment, Proof of Delivery, and Signature Confirmation Requirements.
"Proof of Shipment" is online or physical documentation from a shipping company that includes all of the following:
The date the item is shipped.
The recipient’s address, showing at least the city/state or zip code (or international equivalent).
"Proof of Delivery" is online documentation from a shipping company that includes all of the following:
The date the item is delivered.
The recipient’s address, showing at least the city/state or zip code (or international equivalent).
Signature Confirmation as described below for payments of $250 USD or more or the following foreign currency equivalents:
350 Australian Dollar (AUD) 380 New Zealand Dollar (NZD)
500 Brazilian Real (BRL) 1,600 Norwegian Krone (NOK)
325 Canadian Dollar (CAD) 12500.00 Philippine Peso (PHP)
6,000 Czech Republic Koruna (CZK) 800 Polish New Zloty (PLN)
1,500 Danish Krone (DKK) 150 Pound Sterling – United Kingdom (GBP)
200 Euro (EUR) 400 Singaporean Dollar (SGD)
2,000 Hong Kong Dollar (HKD) 2,000 Swedish Krona (SEK)
55,000 Hungarian Forint (HUF) 330 Swiss Franc (CHF)
1,000 Israeli Shekel (ILS) 8250.00 Taiwan New Dollar (TWD)
28,000 Japanese Yen (JPY) 9000.00 Thai Baht (THB)
2,200 Mexican New Peso (MXN)
“Signature Confirmation” is online documentation that can be viewed at the shipping company’s website and indicates that the item was signed for on delivery.
11.5 Items/transactions not eligible for Seller protection.
The following are examples of items/ transactions not eligible for Seller protection.
Claims or Chargebacks for Significantly Not as Described.
Items that you deliver in person.
Intangible items, digital goods, and services.
PayPal Direct Payments.
Virtual Terminal Payments.
PayPal Business Payments.
Items that are not shipped to the recipient address. If you originally ship the item to the recipient address but the item is later redirected to a different address, you will not be eligible for Seller protection. We therefore recommend not using a shipping service that is arranged by the buyer, so that you will be able to provide valid proof of shipping and delivery.
