I received an email from Paypal today explaining that they have
upgraded our Seller Protection to now include tickets, travel and services.
Why is this significant? Well, nobody really sells tickets or travel on Fiverr, however services are what most of us offer.
Below are quotes of some of the most significant parts of this link which explains things in full along with my own comments and explanations.
Paypal says they can “Protect Your Transactions” in the following 2 situations (The your in this case is Fiverr, not you. BUT, Fiverr represents you in the case of chargebacks).
1. Unauthorised transaction
A buyer requests a refund of an item or service, after claiming they didn’t authorise the payment. If the sale is eligible, our Seller Protection will reimburse you for the full amount.
2. Item not received
A buyer pays for an item or service, claims he or she didn’t receive it, then files a request for a refund. PayPal Seller Protection covers you for the full amount of the payment on eligible sales.
Paypal then says the process for chargebacks is as follows:
- If a buyer files a claim or in case of a chargeback or a payment reversal, we may place a temporary hold on the funds. (Then Fiverr takes this from your account)
- We’ll ask you to provide information including proof of shipping or delivery within the time frame communicated (usually 7- 10 days). (You need to submit this info to Fiverr Customer Support)
- You’ll be able to access your money as soon as we’ve determined that your transaction is eligible. (If successful, you get the money back to your account).
The list of product types that are and are not covered:
What can be covered by Seller Protection?
Physical goods (clothes, toys, electronics, car parts, etc.)
NEW. Services (yoga classes, website design, etc.)
NEW. Tickets (concerts, shows, sport events, etc.)
NEW. Travel (trip, flight or hotel bookings, etc.)
What isn’t covered by Seller Protection?
Items that are delivered or picked up in person
Digital goods (music, computer game downloads and licenses for digital content)
Claims or chargebacks arising from items being significantly different to how you described them
Payments not made through PayPal.
Furthermore, in the email I received, Logo Design was specifically mentioned.
To summarize, it seems like Paypal has decided to be a bit more conscious about digital SERVICES (Not Digital Products) which covers the vast majority of sales on Fiverr.
What you should do as a “Best Practice” situation:
- Make your gig clear - it needs to be clearly defined so there can be no disputing what is agreed - particularly important for Custom Offers where it is tempting to just say things like “as discussed” - DON’T, always be specific!
- When you deliver, make it clear what has been delivered and how it matches up EXACTLY with what was agreed.
- In the event of a chargeback, react quickly but calmly. Quote Paypal’s own rules to Fiverr Customer Support with links that back up your claim.
The full Paypal update page in case you missed it - https://www.paypal.com/IE/webapps/mpp/seller-protection
The full Paypal official Chargeback Guide (remember, only Fiverr CS can respond but by knowing how it works and what they need, you can help them a lot). https://www.paypal.com/my/webapps/mpp/security/sell-chargebackguide1
The info and opinions in this topic are my own and do not necessarily represent Fiverr, Paypal or any other third party. Always check with CS regarding procedures.