A Seller’s Guide to protecting yourself when accepting Paypal Payments on eBay

Whether you use eBay occasionally, selling a few things here an there, or are a Powerseller, selling hundreds of items a day, there are a few guidelines that should be followed.  This list is compiled from our experience of selling on eBay for the past 5+ years.

Accepting payments and Shipping:

• If you accept payments through Paypal, it’s good policy to ship to the “Confirmed Paypal shipping address on the buyer’s account, with proof of delivery (a USPS Delivery confirmation number) at the least.  Please keep in mind that Paypal can only confirm addresses within the US, Canada, and UK.

Why do we do this?  Because on the off chance the buyer reverses payment  for any reason, you have Paypal’s backing to hold those funds in your account as long as you have proof that you shipped to the buyer’s confirmed Paypal address.

• For transactions that total $250.00 USD and above, make sure you go a step further and have signature confirmation of delivery from the buyer (whether you are using USPS, UPS, Fedex, or DHL).  Paypal will require signed proof of delivery for these higher ticket transactions to back you.

• When shipping multiple units to the buyer, do not combine packages if the buyer paid you through Paypal in separate payments.  If the buyer paid you separately, then ship each item in it’s own separate package.  Paypal views each payment as a separate required shipment that can possibly be disputed by the buyer.  Going back to guideline #1, always have proof of delivery for everything you ship.  One way to go around this is to bill the customer for everything in one payment, so you can ship all invoiced items in one shipment.
  
• There will always be a case where the buyer has an unconfirmed paypal address or is requesting to ship to a college or work address.  Please keep in mind that if you accept their request you are taking a risk.  Use your best judgment based on their feedback and their communication with you.  You can always accept different methods of payment if it comes down to an unconfirmed address (ie: money orders, credit cards, cashiers checks, western union, or Bidpay to name a few).  You can also set your Paypal personal settings to allow you to view unconfirmed winner payments with the option to accept or deny the payment.
   
  
• Educate the customer.  Let them know how they can have Paypal confirm their addresses if needed.  Make it clear as to what your auction terms are for your preferences and requirements on accepting payments and shipping addresses.  This will hopefully minimize any misunderstanding and time wasted for both parties.

Dealing with disputes:

If a disagreement goes as far as the buyer filing a dispute through Paypal, and you’ve followed the above guidelines, it should be pretty straight forward as to what you need to follow up with.

1. Always respond as soon as possible to any dispute filed against you (whether it’s a Buyer Dispute, a Buyer Claim, or Chargeback). Paypal usually requires one within the next 10 days of filing.
   
2. Communication is always key.  More often than not, a simple email or phone call would clear up any misunderstanding there may be for a given transaction, and it’s something that can usually be worked out.  And like we said before, if you followed the above Paypal guidelines when accepting payment, there should be no question on how Paypal will back you up.

eBay has incorporated Paypal in such a way to help make for a near seamless transaction when buying something online.  And for the most part, these transactions go smooth, but remember you’re also dealing with people and emotions.  For the few times there are problems, it’s always nice to have a guideline as to what you can do to help minimize these issues from happening.  Hopefully this guide will help make your experience, as well as your buyers’ experiences, a smooth one.