PayPal's Seller Protection Policy is a farce, and at least one PayPal employee admits it.
We started this thread when it was discovered PayPal published one of it's pages on the web with some internal comments still included. The comment was, "too strong I think given the limited ability to comply with SPP." (SPP is seller protection policy. Click here for a sceen shot) Now you have to think for a moment, why would someone at PayPal consider this too strong of a claim? Well we went through their SPP and we found out why.
To be covered on the Seller Protection Policy at Paypal, all of the following conditions must be met:Only the first $5000 in contested sales are covered per year.
You must be a Verified Business or Premier Account.
Only good if both parties are from: US, UK or Canadian.
The payment is listed as "Seller Protection Policy Eligible" on the Transaction Details page. How do you know if it's "eligible?" I could find no "eligibility requirements" on the site. Here is how they say to check:
"To see the Transaction Details for a payment, log in to your PayPal account and click the History subtab of the My Account tab, then click the Details link next to the transaction in question. If a transaction is not listed as "Seller Protection Policy Eligible" it will not be covered under the Seller Protection Policy
Easy, right?! Make sure to check every payment you get!
Seller must ship to the address listed on the Transaction Details page.
Seller must ship to the confirmed address listed on the Transaction Details page. Be sure to make sure it's confirmed, just being listed is not good enough.
Seller must have tracking that shows address shipped to, and it must match the confirmed address listed on the transaction detail page.
Also, the confirmed Address must be the address at which the buyer receives their credit card statements, or an address of the buyer which PayPal has confirmed outside the credit card system. Of course you as the seller have no idea how to verify this, but you have to do it anyway to be covered under the SPP.
Seller must get signature of buyer, (if value is over $250) at the confirmed address that matches address shown on transaction detail page, and is at the same address that the buyer receives their credit card statement and the signature must be of buyer/paypal account holder. To get a "signiture required" is an extra cost option that most people don't even know about, let alone specify when they ship their packages.
So the UPS and Fedex "driver release" will not cut it. Having grandma sign for it won't cut it. You must send it restricted delivery, to the addressee only and that addressee has to be the paypal account holder, and it has to be confirmed by paypal and it has to be confirmed to be the address that the account holder recieves their credit card bill. Whew! That's a mouthful, but that's just the beginning...
You must send the item within 7 days of payment. Send it on day 8, and you will lose.
The tracking number verification must be available online, and it must show the ship to address and it must match the paypal account holder, and it has to be the address confirmed by paypal as the address the account holder recieves their credit card bill. But more importantly, does any online shipper provide the address of the recipient via online tracking? None that I'm aware of. I know the post office does not. I know Fedex ground and UPS ground only show the city and state. That I'm aware, there are no shipping companies that show the address of the recipient via the online tracking number. So this requirement is impossible to fulfill.
You must reply to paypals requests within 7, or as few as 3, days. If you miss it by one day, you lose.
If any one of these conditions are not meet, you lose! How items have you shipped that meet everyone of these requirements? None! Because it's impossible to meet them all.
Based on my reading of the PayPal "Seller Protection Policy," no one will ever qualify!
Now you know why someone at PayPal considered calling it "excellent" as being too strong. Because it's true! Taken directly from http://www.paypal.com/us/cgi-bin/webscr?cmd=p/gen/ua/policy_spp-outside For some reason, there was only a little media coverage and it focused on the mistake, not the admission, nor what it means. Very strange.
PayPal Sucks. Use a Merchant Account To Accept Credit Cards