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PayPal Expands Buyer Protection
By Ryan Naraine

October 6, 2004


In a move that could boost e-commerce sales by increasing customer confidence, online shoppers using PayPal in their eBay transactions will now get up to $1,000 of buyer protection.

The move by PayPal, which is owned by eBay, doubles the coverage from $500 for qualified transactions on the e-commerce and online auction site. The expansion takes effect on Nov. 8 -- just in time for the holiday shopping season -- and covers approximately 80 percent of all eBay-listed items, the company said.

Not all items are covered because the protection is extended only when certain purchasing conditions are met.

PayPal spokeswoman Amanda Pires told ECommerce-Guide.com's sister site, internetnews.com, that the expanded program covers transactions with "qualified sellers" that result in non-delivery or delivery of items that are significantly not as described.

An eBay-qualified seller is described as one who maintains a 98 percent positive feedback rating and has at least 50 feedback points. PayPal also added an enhancement to the positive feedback percentage eligibility requirements to include feedback from both unique and repeat buyers.

"The program was launched a year ago and it has been very successful to encourage buyer confidence and trust on eBay. With the Christmas shopping season approaching, we wanted to expand it to deal with expected increase in transactions," Pires said.

She said the company's buyer complaint process is still available for transactions that do not qualify for PayPal Buyer Protection. eBay's standard purchase protection offers $200 of coverage with a $25 processing fee.

The expanded protection is only available in the United States, Canada, Germany and the United Kingdom.

PayPal urged shoppers to keep looking for the "PayPal Buyer Protection" icon in the eBay seller's information to see if the doubled coverage applies.

The move comes on the heels of other PayPal efforts to help online shoppers purchase with confidence, or to afford items that they might normally. In June, PayPal debuted Buyer Credit, enabling shoppers to sign up for financing for higher-cost items they purchase on eBay and elsewhere on the Web.

eBay itself has taken a number of steps that, among other things, can improve the buying and selling experience. Last month, the company expanded its Feedback Withdrawal process by instituting a third-party review process in eBay Motors.

Ryan Naraine is a senior editor at internetnews.com, a sister site of ECommerce-Guide.com.

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