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eBay plans to offer $500 in buyer protection coverage for payments made through PayPal in addition to $200 in protection available for all eBay transactions.
Shoppers on eBay Inc.`s eBay.com who use the site`s PayPal payment system will be able to get protection against non-delivery or other fraudulent activity by sellers for up to $500 of the value of goods purchased, CEO Meg Whitman said at the recent eBay Live member conference. This is in addition to the $200 in coverage eBay already offers for nearly all transactions.
EBay is making the PayPal protection program available through its sellers that accept PayPal payments and have a proven track record in fulfilling transactions with buyers. Participating sellers must have a record of at least 50 buyer feedback messages, with at least 98% of them positive. The PayPal protection program, which eBay says will cover about half of all listings on eBay, will initially become available through sellers based in the U.S. or Canada. PayPal is a system that automatically charges a buyer`s credit card or checking account. EBay says there are no new fees related to the PayPal protection program.
But eBay does charge a $25 service fee to buyers who seek reimbursement of up to $200 through eBay`s existing buyer protection plan, which covers nearly all transactions on eBay regardless of whether PayPal is used. There are no direct fees to sellers.
Buyers seeking reimbursement for undelivered or misrepresented goods must first file a fraud protection claim with eBay, which will then e-mail the buyer a fraud protection claim form. The claim form must be approved by eBay`s fraud review team before a reimbursement is made.