To help protect merchants against fraudulent transactions, PayPal will be providing an expanded Seller Protection policy in Asia Pacific from 11 October 2013.
According to Paypal, fraudulent transactions are costing online businesses a significant amount of time and money, indirectly hindering offline businesses from embracing e-commerce. The Seller Protection policy thus acts as an additional layer of security to reduce this risk.
Rohan Mahadevan, vice president of Asia for PayPal, said: "Seller Protection...will help merchants to manage their risk ...[while] empowering them to capitalise on the multi-billion-dollar cross-border trade opportunity in Asia's fast growing economy."
The policy will be available to PayPal merchants in Singapore, Taiwan, Thailand, Vietnam, Philippines, Malaysia, Indonesia, Japan, India, Hong Kong, China, Australia and New Zealand.
How the Seller Protection policy works
Whenever a customer files a Claim, Chargeback or Reversal, PayPal will temporarily hold the funds in the merchant's account to cover the full amount. Merchants are then required to submit the appropriate documents via the PayPal Resolution Centre for Paypal's review. If the transaction meets the eligibility requirements for Seller Protection, Paypal will restore the funds to the merchant's account. Otherwise, the funds will be returned to the buyer and a Chargeback fee might be charged.
No subscription or extra fee is required for the Seller Protection policy as long as the merchant meets the eligibility criteria.
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