Aussie sellers to get some protection in March from PayPal - find out how it will work here.
A nasty but accurate rule of thumb when using PayPal, eBay's credit card payment and escrow service, is that it always favours the buyer over the seller. It’s worse if you’re defrauded with a credit card dispute. Not only do you lose your goods and the cash, but you also get hit with a $15 chargeback fee.
PayPal’s not been immune to the criticism, and the company is making changes to better represent eBay sellers using its services. As of the 27th of March, Australian eBay sellers will get some selling protection for most eBay sales, according to PayPal Australia managing director Andrew Pipolo.
First up – and according to Pipolo a world first – is that if you’re paid for a legitimate sale with a stolen credit card, PayPal “may” cover the lost funds and chargeback fee if you can prove that items were sent in good faith. In order to qualify, sellers will need to meet “eligibility criteria”. Pipolo qualified this as meaning that you’d have to have a PayPal.com.au account in good standing, along with proof of postage in the case of issues pertaining to goods not received.
The coverage for sellers who then have disputed goods delivery mirrors PayPal’s stance in the rest of the world, but up until now, Australian sellers have been largely out in the cold. From the 27th, most eBay categories should be covered, with the exception of motor vehicles and certain intangible goods, such as digital downloads, where proof of delivery is nigh on impossible, according to Pipolo.
Pipolo told PC Authority that the primary fraud problem that PayPal.com.au users faced was the use of stolen credit cards, although he was keen to point out that it’s still relatively rare. “Chargebacks from unauthorised credit card charges are very small; around 0.0071 percent of payments on ebay.com.au.”, he said.
It’s perhaps testament to the level of funds going through PayPal.com.au that a problem of that statistical unimportance is still worth chasing as a business case. Still, it’s decent news for those burnt selling on PayPal previously, along with a slightly new set of rules for buyers. Where delivery was proven to PayPal’s satisfaction, Pipolo said, they would follow it up with buyers to reclaim the repaid funds.
It’s worth noting that the announcement today is peppered with a ton of qualifiers; the mantra that sellers “could” be protected was repeated throughout. It’s not all rosy for eBay/PayPal sellers, however. At the same time as it’s introduced these seller-positive facilities, eBay (PayPal’s parent company) is in the process of removing the ability for sellers to leave negative feedback for buyers, a change that will take place in May.