Captured before automated identity checks (Oct 14, 2026): accurate as of its capture on Sep 11, 2026; our capture on Oct 15, 2026 found the same text, but its identity was not checked by them.
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This document sets out the terms and conditions of PayPal's Purchase Protection program, which may provide buyers with a refund covering the full purchase price plus original shipping costs when a purchased item is not received or is materially different from its description. PayPal reserves sole discretion to determine claim eligibility and may issue a temporary refund during investigation that can be reversed and recovered from the buyer's PayPal account balance if the dispute is not resolved in the buyer's favor, with at least five business days' advance notice before any deduction. The document also establishes that buyers must choose between filing a dispute with PayPal or pursuing a chargeback with their card issuer, as pursuing both simultaneously for the same transaction will result in PayPal closing its dispute process.
This document governs PayPal's Purchase Protection program, a buyer dispute resolution mechanism incorporated by reference into PayPal's user agreement, with an effective date of January 26, 2026. The terms authorize coverage of the full purchase price plus original shipping costs for eligible Item Not Received and Significantly Not as Described claims, while reserving to PayPal sole discretion to determine claim eligibility, make final decisions, issue temporary refunds that may subsequently be recovered from the claimant's account, and require item return at the buyer's expense. The document establishes a structured five-step online dispute resolution process with defined timeframes (disputes must be opened within 180 days of payment for Item Not Received claims, and within 30 days of delivery or 180 days of payment for Significantly Not as Described claims, whichever is sooner), a mandatory 20-day escalation window, and an explicit prohibition on pursuing concurrent disputes with both PayPal and a card issuer for the same transaction. The program engages consumer protection frameworks administered by the Consumer Financial Protection Bureau and the Federal Trade Commission, particularly regarding dispute resolution procedures for payment services, card chargeback rights under Regulation E and card network rules, and consumer disclosure obligations. Compliance teams should note the document's explicit acknowledgment that card issuer chargeback rights may be broader than PayPal Purchase Protection coverage, the clawback mechanism for temporary refunds, and the extensive list of ineligible item categories including NFTs, gift cards, crowdfunding payments, and items intended for resale.
The agreement establishes that PayPal holds sole discretion over whether a claim qualifies for Purchase Protection coverage, and that its original determination is considered final subject only to a limited appeal based on new information or identified decision-making error. Under these terms, temporary refunds issued during dispute investigation may be recovered from the buyer's PayPal account if the dispute is ultimately resolved against the buyer, with the document stating PayPal will provide at least five business days' advance notice before any such deduction. You can appeal PayPal's decision if you have new or compelling information not available at the time of the original determination, or if you believe there was an error in the decision-making process.
Which mapped governance frameworks each document engages, tied to the specific provisions that engage them.
We withheld clauses we had published from this document. Each withholding is recorded in our correction log:
“Anything prohibited by PayPal's Acceptable Use Policy.”
“Have a PayPal account in good standing.”
“You may be required to return the item to the seller or other party we specify as part of the settlement of your claim.”
“You must choose whether to pursue a dispute with PayPal under our Purchase Protection program, or to pursue the dispute with your card issuer. You can't do both at the same time or seek a double recovery.”
“Personal Payments including payments sent using PayPal's friends and family functionality.”
“Escalate the dispute to a claim for reimbursement within 20 days after opening the dispute, if you and the seller are unable to come to an agreement, or we will automatically close the dispute.”
“Non-fungible tokens (NFTs).”
“you will not qualify for a refund under PayPal's Purchase Protection program for an Item Not Received Claim if the seller has provided proof of shipment or delivery.”
“PayPal's Purchase Protection program may result in coverage for the full purchase price of the item plus the original shipping costs you paid, if any.”
“PayPal determines, in its sole discretion, whether your claim is eligible for the Purchase Protection program based on the eligibility requirements, any information or documentation provided...”
“We will place a hold on all funds related to the transaction in the seller's PayPal account until the dispute is resolved or closed.”
“If the dispute is not resolved in your favor, the refund amount may be recovered as amounts owed to PayPal, which means we may take actions, including but not limited to debiting your PayPal account accordingly.”
Every distinct legal provision identified in this document. Featured provisions appear above with analysis.
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