For the first time, buyers who pay with PayPal will be protected on eligible transactions for 100 percent of an item's purchase price, with no cap on coverage. In addition, all U.S. eBay sellers will receive improved seller protection for eligible transactions when they are paid through PayPal.
“We're combining the power of eBay and PayPal to give all buyers and sellers more confidence and trust,” said Lorrie Norrington, eBay's president of marketplace operations. “Buyers who pay with PayPal on eBay will be covered, with no limits, on most transactions. Any seller who gets paid with PayPal will be covered on most transactions, too, and can ship to 190 countries worldwide where PayPal is accepted.”
Giving Paypal Users an Advantage
Norrington introduced the protections at the company's seventh eBay Live! community conference this week. Currently, 97 percent of eBay.com listings offer PayPal and more than 90 percent of active eBay users in the U.S. have PayPal accounts.
PayPal Buyer Protection covers eligible transactions on eBay.com for items that aren't received and for items that are significantly not as described. Beginning this fall, PayPal will remove the coverage limit, giving buyers more confidence when they pay for eBay purchases with PayPal.
PayPal's improved seller protection covers sellers against claims, charge-backs and reversals due to an unauthorized payment or an item that was not received. Under this improved protection, sellers can ship to buyers in markets worldwide where PayPal is accepted and be eligible for protection. PayPal's seller protection is provided without any additional cost, and beginning later this year, PayPal will remove the annual coverage cap.
PayPal's increased buyer and seller protections take effect this fall.
“Today's announcement makes it simple for our customers — we're providing protection whether a transaction costs $50 or $50,000,” said Scott Thompson, president of PayPal. “As PayPal celebrates its 10th anniversary this year, we're pleased to deliver these new protections and allow customers to shop on eBay with even more confidence.”
PowerSellers Get More Benefits
Along with the payment protections, eBay also introduced at eBay Live! incentives and rewards for its best PowerSellers.
For PowerSellers, eBay announced a discount program rewarding sellers who consistently provide the best customer experiences, as measured by eBay's Detailed Seller Rating. DSRs are a scorecard that buyers use to rate sellers on a 0-5 scale (five being highest) across four key metrics.
Sellers with DSRs of at least 4.9 across all four categories will receive 20 percent off their final value fees, the commission eBay charges sellers for sold items. Sixteen percent of PowerSellers immediately qualify for the discount, which will appear on July invoices.
But not all sellers are happy with the changes over the past few months, some of which have affected their ability to leverage the new PowerSeller benefits.
A seller named “1finesale” has closed up shop on eBay since the feedback-policy change. “I rarely had non-paying bidders, but within a matter of a few weeks had five … that has never happened before. Up until the change, I had a 99.9 percent positive feedback rating … I am with those that are finished with eBay, their fees, their policy changes to protect buyers but not sellers.”
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