PayPal Buyer and Seller Protection

This is PayPal's Purchase Protection Program policy, which explains when and how PayPal will refund you if you don't receive an item you paid for or if it arrives significantly different from what was described. The most important thing to know is that PayPal has sole discretion over whether your claim is approved, you must open a dispute within a strict deadline (180 days from payment), and if PayPal gives you a temporary refund that is later reversed, PayPal can debit your account to take that money back. If a dispute is denied, you can file an appeal with PayPal if you have new evidence, or file a complaint with the CFPB at consumerfinance.gov/complaint.

This document governs PayPal's Purchase Protection Program for US account holders, establishing the contractual terms under which buyers may seek refunds for 'Item Not Received' (INR) and 'Significantly Not as Described' (SNAD) claims, forming part of PayPal's broader User Agreement. The most significant obligations created include mandatory adherence to a four-step online dispute resolution process—including opening disputes within strict timeframes, escalating to claims within 20 days, and providing documentation on PayPal's demand—with non-compliance resulting in automatic claim denial. Notable deviations from industry standard include PayPal's reservation of 'sole discretion' in all eligibility determinations, the explicit exclusion of return shipping costs from coverage, the clawback mechanism allowing PayPal to recover temporary refunds by debiting user accounts if disputes are not resolved in the buyer's favor, and the broad exclusion of NFTs, PayPal World QR code payments, and items intended for resale. The program engages the FTC Act Section 5 (unfair or deceptive acts or practices), the CFPB's jurisdiction over payment processors and dispute resolution under the Electronic Fund Transfer Act (EFTA/Regulation E), and state consumer protection statutes. Material compliance considerations include the adequacy of the sole-discretion standard under CFPB supervisory guidance on fair dispute resolution, and the risk that the clawback-of-temporary-refund mechanism may be scrutinized as an unfair practice if consumers are not given meaningful notice.