PayPal G&S: PayPal is highly known for its online payment system that allows users to send, receive, and Request money. However, PayPal also has a feature called “Goods & Services” or “G&S.”
G&S is a way to make sure you’re protected when you buy/sell something online via PayPal. So, if you haven’t heard of G&S, or you’re just curious about how it works, here’s a quick explanation!
Keep on reading to find out how PayPal GS protects both the buyer and the seller, who is eligible for this purchase protection program and is there any fee for using PayPal GS.
What Is PayPal G&S In 2022?
As of 2022, PayPal provides a purchase protection program called PayPal G&S. Here, G&S means Goods and Services. So, all commercial transactions made through PayPal GS will be covered by PayPal’s Purchase Protection and Seller Protection Programs.
This means that buyers and sellers can transact with confidence, knowing that they are protected against fraud or other issues that may arise.
These programs provide coverage for items that are not received by the buyer, or if the item received is significantly different from what was described by the seller.
In addition, the programs also protect sellers from buyers who file fraudulent claims or chargebacks.
Overall, the PayPal Goods and Services protection programs offer a high level of protection for both buyers and sellers on the platform.
This makes PayPal an attractive option for businesses and individuals who are looking to conduct commercial transactions online.
This program also gives PayPal a competitive advantage over other digital payments providers like Skrill, Stripe, Square, Venmo, Payoneer, etc.
How Does PayPal G&S Protect the Seller?
PayPal’s Goods and Services (G&S) protects sellers by providing a number of features and services.
One of the most important is PayPal’s Seller Protection Program, which may reimburse sellers for certain types of buyer claims or chargebacks.
To be eligible for this protection, sellers must meet certain requirements such as –
- Maintaining proof of delivery to the buyer’s confirmed address
- You must have sold a physical item that is tangible in nature
- You have your primary address in the United States
- The shipment has been delivered within the prescribed time
- You should have responded to PayPal requests within 10 business days
Other protections offered by PayPal G&S include fraud monitoring, dispute resolution services, and buyer/seller protection policies.
Together, these features and services help create a safe and secure environment for online transactions.
How Does It Work?
When a buyer initiates a chargeback or claim against a seller, PayPal will first attempt to resolve the issue between the buyer and seller.
If the dispute cannot be resolved, PayPal may reverse the transaction and refund the buyer.
In cases where it is determined that the chargeback or claim is valid, PayPal’s Seller Protection Program may reimburse the seller for the full amount of the transaction, including shipping and handling costs.
“Item Not Received” Disputes
When a buyer files a complaint that they did not receive an item that they purchased from a seller, PayPal’s Seller Protection program may cover the seller if they meet certain requirements.
In order for a seller to be eligible for protection, they must provide proof of delivery to the buyer as well as meet other basic requirements.
If the buyer files a chargeback with their card issuer, PayPal will mark the payment as eligible for Seller Protection if the seller meets all of the requirements.
This means that the seller will not be responsible for any losses incurred as a result of the chargeback. The buyer may also be required to return the item to the seller in some cases.
By ensuring that they are able to provide proof of delivery and meeting other basic requirements, sellers can be confident that they will not be held responsible for any losses if a buyer files a chargeback.
This protection gives sellers peace of mind knowing that they will not be out of pocket if a dispute arises.
Sale Of Intangible Goods & Services
Even Intangible goods have the same level of Seller protection as physical goods when it comes to PayPal.
The company has a few different things in place to help make sure that the person who is selling the product is protected against any type of fraud that could happen.
First, PayPal requires that all integrations are up to date and being used correctly. This helps to ensure that the data being passed back and forth between the seller and PayPal is secure.
Second, it has a process in place to flag transactions that may be eligible for Seller Protection.
This allows the company to take a closer look at the transaction and make sure that everything is legitimate.
Finally, they require that the seller provide proof of shipment or delivery for the intangible good.
This helps to ensure that the buyer actually receives the product they paid for and that there is no fraud taking place.
So, if you are a seller of intangible goods, you can rest assured that PayPal has your back when it comes to their Seller protection program.
You just need to make sure that you are using the correct integration and following all of the required steps.
QR Code Payments
PayPal Seller Protection Program requires the seller to maintain evidence of shipment or delivery when claiming protection.
So, the proof of delivery or shipment is the key factor that decides whether the seller is eligible for protection or not.
But, when it comes to QR code transactions, there is an additional requirement that the seller has to meet.
When a QR code payment was made, in order to be eligible for protection, the seller would need to provide PayPal with either proof of delivery OR such alternative documentation or information that would substantiate that the item was delivered to the buyer.
Only then the seller be protected under PayPal Seller Protection Program. In case, the seller is not able to provide any of these, then he/she would not be eligible for protection.
How Does PayPal G&S Protect the Buyer?
PayPal’s Goods and Services (G&S) program provides purchase protection for buyers on eligible transactions.
If an item is not received or is significantly not as described, PayPal will reimburse the buyer for the full purchase price plus original shipping costs.
However, there are some exclusions, such as for items that violate PayPal policies, real estate, vehicles, industrial machinery, custom-made goods, and prepaid cards.
G&S purchase protection is a great benefit for buyers who shop on PayPal-enabled sites, as it provides an extra level of protection against fraud or misrepresentation.
So, if you’re ever considering buying something on a site that accepts PayPal, be sure to check and see if G&S purchase protection applies! It could save you a lot of hassle (and money) in the long run.
Even if it’s an unauthorized charge, PayPal will reimburse the buyer as long as it’s reported within 60 days.
And for items that are not received or are in incorrect condition, buyers have 180 days to create a dispute.
So, if you’re ever unhappy with a purchase made through PayPal, be sure to reach out and let them know as soon as possible.
What Percentage Does PayPal Take For G&S?
The percentage PayPal collects on each transaction depends on the country of the recipient and whether it is a purchase or a sale.
For instance, if you are based in the U.S. and you use PayPal to sell a tangible item to someone, such as a book, you will be charged 3.49% of the total amount of the sale, plus a fixed fee based on the currency used.
So, let’s say that you are a U.S-based PayPal seller and your buyer is from Canada. If you sell him/her a pair of shoes for $100, your PayPal fee would be 3.49% of $100, which is $3.49, plus the Canadian fixed fee of CAD$0.30.
CAD$0.30 is the Canadian fixed fee because that is the currency of the transaction. Now, when you convert CAD$0.30 to USD, it comes out to be about $0.23. So in total, your PayPal fee for this transaction would be $3.72.
If you were the buyer in this scenario and paid using your PayPal balance or a linked bank account, you would not have been charged any fees.
However, if you had used a credit or debit card to fund the purchase, you would have been charged a fee of 2.9% + $0.30.
This is because when you use a credit or debit card to fund a PayPal transaction, PayPal charges the sender (in this case, the buyer) a fee of 2.9% + $0.30.
So, in our example above, if the buyer had used a credit or debit card to pay for the shoes, he/she would have been charged a PayPal fee of 2.9% of $100, which is $2.90, plus $0.30. Therefore, the total fee would have been $3.20.
As a general rule of thumb, if you are selling something on PayPal, you can expect to pay a fee of 3.49% + $0.30 (for transactions in USD).
If you are the buyer and are paying with a credit or debit card, you can expect to pay a fee of 2.9% + $0.30.
And if you are the buyer but are using your PayPal balance or a linked bank account to pay, you will not be charged any fees.
Making Use of PayPal G&S
If you’re looking to send or receive money using PayPal, you’ll need to use the Goods and Services option.
This is because when you’re dealing with physical goods or services, there’s always the potential for something to go wrong.
For example, if you sell someone a piece of furniture and they never receive it, PayPal’s Seller Protection policy may cover you.
The same goes for services – if you hire someone to do a job and they don’t deliver, you may be protected.
Using the Goods and Services option is pretty simple. It’s as easy as 1-2-3:
Step 1: Log in to your PayPal account and click on the ‘Send & Request’ option that sits at the top of the page.
Step 2: Enter the phone number, email address, or contact name of the person you’re sending money to.
If they’re already in your PayPal contacts, you can just select them from the drop-down menu.
Step 3: Enter the amount you want to send and you may also write a short note to go along with the payment.
Step 4: When you’re happy with everything, click ‘Continue’ and then select the ‘Paying for an item or service’ option in the pop-up window.
Step 5: Choose how you want to pay – with your PayPal balance, bank account, or debit/credit card.
Step 6: Review the payment details and click ‘Submit’ to send the money on its way!
So, if you are a buyer or seller using PayPal, make sure you choose the paying for Goods and Services option to ensure you’re covered by PayPal’s Seller Protection policy or purchase protection for buyers.