PayPal collection in person fraud processes

One of the problems when selling items which are collected in person is that you PayPal only cover transactions for which there’s online proof of delivery. However when listing on eBay, you are still obliged to offer PayPal as a payment method even if collection in person is the only delivery method offered.

We read recently in the Guardian that PayPal had “introduced new policies” covering fraud when an item is paid for with PayPal and collected in person so had to find out more.

According to the Guardian a PayPal spokesperson said “to help buyers and sellers who have been the victims of fraud as a result of exchanging goods in person. Provided the customer can provide evidence that they reported the crime to the police [which can be done quickly online through Action Fraud], we will consider a goodwill refund.”

We asked PayPal for confirmation and they explained that “It’s not strictly speaking a new policy. What we have done is to formalise a process where we consider goodwill refunds to sellers who have been the victims of fraud through local pick up. In the case highlighted by the Guardian, the transaction (sale of a car) wasn’t covered by seller protection but we still made a refund because the seller had reported the alleged fraud to law enforcement. Each case is considered on its merits”.

It’s good to know that if a buyer chooses to pay by PayPal for an item that they’re collecting that the seller isn’t left without any protection at all – it’s welcome news that PayPal will still consider these edge cases and look after their customers.