In certain circumstances, PayPal will step in and reimburse you if you don’t receive what you paid for from a seller, under the PayPal Buyer Protection scheme.
PayPal Buyer Protection
The first stage is to raise a ‘dispute’ with the seller. This must be done within 180 days of initial the PayPal payment. If you can’t bring the dispute to a satisfactory resolution within 20 days of raising it, then you can escalate it and raise a claim under the PayPal Buyer Protection scheme.
Reasons to make a claim
You can raise a claim if an item wasn’t received at all or it was received but was ‘significantly not as described’.
For example: if an item was described as new but was in fact used, or you ordered a book but received a DVD, or you ordered three items but only two arrived, then you are able to raise a claim. An item would also be significantly not as described if it was damaged in transit.
Find out more about what to do if an online order hasn’t arrived.
PayPal Buyer Protection exceptions
Some items are not covered buy the scheme, including complaints related to cars and other vehicles, flights, custom-made items and Ebay classified advertisements.
PayPal Buyer Protection reimbursements
If PayPal determines a claim in your favour, it will reimburse you the full purchase price of the item and the original postage costs.
You will have to cover the cost of sending back any item that you received but that was significantly different to the way it was described, however.
Consumer Credit Act Section 75
Don’t forget that if you buy goods or services on your credit or debit card, you have extra protection if the item cost more than £100 and not more than £30,000. Learn more about Section 75.
PayPal has frozen my account
PayPal will, on occasion, lock accounts that it believes have transactions larger than normal to protect them against fraud.
If your account has been affected, go online to PayPal’s Resolution Centre, and you should be able to find out why your account has been locked.
If the limitation isn’t lifted in three days, call PayPal directly.
If you're dissatisfied with its complaints process, you can escalate the problem to the Financial Ombudsman Service after eight weeks.