Paypal purchase and seller protection

Your PayPal transactions are secured and accounted for. We help protect buyers' eligible transactions, and sellers against fraudulent payments. We've got your back while you shop or sell online. Terms and Limitations apply.

Shop with confidence

If your order is significantly different to the seller's description or doesn't arrive, you have 180 days to file a dispute. We can protect you, if your purchase is eligible for the full purchase price plus original shipping costs. To help protect your purchase, make sure you:

  • Pay with PayPal
  • Keep your account in good standing
  • Respond to our request(s) for documentation and other information in a timely manner
  • For terms and limitations, see our User Agreement.
Buying Something From, or Returning Something to, a Seller Who Accepts PayPal

How to buy something

You can buy something from a seller who accepts PayPal, in any currency that the seller accepts and that PayPal supports, using the funds in your PayPal balance, or using any payment method linked to your PayPal account. This includes, for example:

  • Buying something at an online retailer's website and selecting PayPal as your payment method at checkout.
  • Sending money to a seller for good or services.
  • Using your PayPal account to buy something at a seller's physical store.

If the seller you are buying from sells goods or services and that seller does not already have a PayPal account, they can claim your payment by opening a PayPal account. If they don't open a PayPal account within 30 days, your purchase will be refunded.

In order to manage risk, PayPal may limit the payment methods available for a transaction when you buy something. In addition, payment methods may be limited for certain sellers or if you make a PayPal payment through certain third-party websites or applications.

When you authorize a payment to a seller who accepts PayPal, some sellers may take up to 30 days to complete the transaction. In these instances, your payment may appear as a pending order in your PayPal account. In that case, your authorization of the payment will remain valid until the seller completes the transaction (but no longer than 30 days). If you used a debit or credit card as the payment method, your debit or credit card issuer also may show a pending authorization for a period of time until they release the hold or receive a completed transaction. If your payment requires a currency conversion by us, the transaction exchange rate will be determined and applied as described in the How Paypal convert currency section and may be the rate at the time the payment is processed.


When you buy something from a seller who accepts PayPal, you don't pay a fee to PayPal. If PayPal performs a currency conversion for your purchase, PayPal's transaction exchange rate (including our currency conversion fee) will be used.

Your credit card,Visadebit card or Mastercard debit card issuer may also charge you a separate fee for non-Canadian transactions.

Payment review

When PayPal identifies a potentially high-risk transaction, Paypal review the transaction more closely before allowing it to proceed. When this happens, PayPal will place a hold on the transaction and notify the seller to delay shipping of the item. As a buyer, this may delay your receipt of the item you purchased. If Paypal clear the transaction, Paypal will notify the seller and direct them to ship the item. If Paypal don't clear the transaction, Paypal will cancel it and return the funds to you, unless Paypal are legally required to take other action.

Automatic payments

You can agree with a seller who accepts PayPal to use PayPal as the payment method for future purchases with that seller. This agreement is between you and the seller and allows the seller to take funds from your PayPal account with your authorization on a one-time, regular or sporadic basis. Examples of automatic payments that can be arranged by you either with a seller or with PayPal include those that PayPal calls a "billing agreement", "subscription", "recurring payment", "reference transaction", "preauthorized debit or PAD", "preauthorized transfer" or "preapproved payment."

You may cancel an automatic payment up to 3 Business Days before the date of the next scheduled payment from your account settings or by contacting us through the PayPal Help Centre. Once an automatic payment is canceled, all future automatic payments under your agreement with that seller will be stopped. If you cancel an automatic payment, you may still oPaypal the seller money for the purchase or have additional obligations to the seller for any goods or services that you receive but have not paid for.

If you have given advance authorization, either to a seller or to PayPal, that permits a seller to take or receive payments from your PayPal account on a regularly recurring basis (for example, every month or otherwise on a routine billing cycle), and if such payments will vary in amount, you have the right to advance notice of the amount and date of the transfer from the seller at least 10 days before the transfer is made. If the seller provides the option, you may choose to receive this advance notice only when the amount of your automatic payment will fall outside a range established between you and the seller.

If you have authorized an automatic payment and PayPal performs currency conversion for an automatic payment transaction, PayPal will use the transaction exchange rate (including PayPal's currency conversion fee) in effect at the time the automatic payment transaction is processed.


When you buy something from a seller online using PayPal and the transaction is ultimately refunded, the money will typically be refunded to the original payment method you used for the transaction if you used a credit card, Visa debit card, Mastercard debit card or PayPal balance. If you used a bank account as the payment method for the transaction, Paypal will refund the money to your bank account, or to your PayPal balance if Paypal cannot refund it to your bank account. For purchases you make in a seller's store location that you paid for using your PayPal account and the transaction is ultimately refunded, the money will be refunded to your PayPal balance.

If PayPal performed a currency conversion for your transaction and a refund is issued:

  • Within 1 day of the date of the original payment, PayPal's transaction exchange rate (including our currency conversion fee) used at the time of the original payment will apply.
  • Beyond 1 day of the date of the original payment, PayPal's transaction exchange rate (including our currency conversion fee) on the date of the refund will apply.

Money will be refunded in the currency you paid; or if Paypal are unable to refund in the currency you paid, in your primary holding currency; or if Paypal are unable to refund in your primary holding currency, then in Canadian dollars.

Payment Method Used for My Transaction

Selecting a preferred payment method

You can choose any of the payment methods in your PayPal account as your preferred payment method. You can select a preferred payment method in your account preferences on or in the PayPal app. There may be times when your preferred payment method cannot be used, for example, if you select a credit card that is expired.

You can set separate preferred payment methods for online transactions, in-store transactions and automatic payments with a seller.

If you have chosen a preferred payment method, it will be shown as the primary method of payment. If you have not chosen a preferred payment method, it's still your choice.

The availability of certain payment methods may be limited based on that particular seller or the third party website you are using to complete the transaction.

If you have not selected a preferred payment method, or your preferred payment method is unavailable, Paypal will show you available payment methods, including the payment method you used most often or most recently, at the time of transaction. You can also click on the "Manage" link to see all of your available payment methods, or add a new one, and select a payment method during the transaction.

Backup payment method

Certain one-time online transactions may require that a backup funding method be used in the event that your selected or preferred payment method is unavailable. In those instances, the backup funding method may be displayed to you on your transaction review page, before you complete the transaction. Note that this only applies for one-time, online transactions, and not for in-store or automatic payments. If PayPal determines currency conversion is necessary for a transaction that also requires a backup payment method, you may not be able to separately choose whether PayPal or your card issuer performs the currency conversion on your backup payment method.

Sending money to friends and family

When you send money to friends and family using your PayPal balance (if available) or your bank account, Paypal waive all fees, so Paypal always show you these payment options first, even if you have a set preferred payment method for your online purchases. Remember, you always have the choice to select any payment method in your PayPal account by clicking the "Change" link on the Send Money page. If you select a payment method with a fee, Paypal will always show you the fee before you send money.

Automatic payments

Some sellers allow you to store PayPal as the way to pay when making purchases on their site, so you can check out faster. Often, this entails creating an agreement with the seller that permits them to request that Paypal chargeyour PayPal account each time you make a purchase.

You can select a payment method for future purchases with a particular seller either at the time of creating the agreement or in your account settings on For example, you can instruct your monthly movie subscription service to always charge your credit card for the monthly cost.

If your chosen payment method is unavailable (e.g. credit card expired), a particular agreement with a seller does not provide for the ability to specify a payment method, or if you have not designated a payment method for future transactions with a seller, the payment method used will be in the following order, if applicable: 1. balance; 2. bank account (instant transfer); 3. PayPal co-branded debit card; 4. PayPal co-branded credit card; 5. debit card; 6. credit card; and 7. E-cheque.

You can cancel any agreement in your account settings on

Bank account transfers

When you use your bank account as a payment method, you are allowing PayPal to initiate a transfer from your bank account to the recipient. For these transactions, PayPal will make electronic transfers from your bank account in the amount you specify. You authorize PayPal to try this transfer again if the initial transfer is rejected by your bank for any reason.


E-cheque is a payment method where you use your bank account as your payment method, and the payment is not received by the recipient until the transaction is processed from the bank. This process usually takes 3-5 Business Days, but this amount of time will increase if the payment is sent from a bank account located outside Canada.

PayPal's Purchase Protection Program

When you buy something from a seller who accepts PayPal, you may be eligible for a refund under PayPal's Purchase Protection program. When applicable, PayPal's Purchase Protection program entitles you to reimbursement for the full purchase price of the item plus the original shipping costs you paid, if any. PayPal determines, in its sole discretion, whether your claim qualifies for the Purchase Protection program. PayPal's original determination is considered final, but you may be able to file an appeal of the decision with PayPal if you have new or compelling information not available at the time of the original determination or you believe there was an error in the decision-making process.

IMPORTANT: You may be required to return the item to the seller or other party Paypal specify as part of the settlement of your claim. PayPal's Purchase Protection program does not entitle you to reimbursement for the return shipping costs that you may incur.

PayPal's Purchase Protection program may apply when you encounter these specific problems with a transaction:

  • You didn't receive your item from a seller (referred to as an "Item Not Received" claim), or
  • You received an item, but the item isn't what you ordered (referred to as a "Significantly Not as Described" claim).

If you believe that a transaction made through your PayPal account was not authorized by you, this type of claim is different from the Purchase Protection program, and is described below under Liability for Unauthorized Transactions and Other Errors.

Item Not Received claims

Your claim will not qualify for a refund under PayPal's Purchase Protection program for an Item Not Received claim if:

  • You collect the item in person, or arrange for it to be collected on your behalf, including if you use PayPal in a seller's store location, or
  • The seller has provided proof of shipment or proof of delivery.

If the seller presents evidence that they delivered the goods to your address, PayPal may find in favour of the seller for an Item Not Received claim even if you claim you did not receive the good

Significantly Not As Described claims

An item may be considered Significantly Not as Described if:

  • The item is materially different from the seller's description of it.
  • You received a completely different item.
  • The condition of the item was misrepresented. For example, the item was described as "new" but the item was used.
  • The item was advertised as authentic but is not authentic (i.e. it is counterfeit).
  • The item is missing major parts or features and those facts were not disclosed in the description of the item when you bought it.
  • You purchased a certain number of items but didn't receive them all.
  • The item was damaged during shipment.
  • The item is unusable in its received state and was not disclosed as such.

An item may not be considered Significantly Not as Described if:

  • The defect in the item was correctly described by the seller in its description of the item.
  • The item was properly described but you didn't want it after you received it.
  • The item was properly described but did not meet your expectations.
  • The item has minor scratches and was described as "used."

Ineligible items and transactions under PayPal's Purchase Protection program

Payments for the following are not eligible for reimbursement under PayPal Purchase Protection:

  • Real estate, including residential property.
  • Financial products or investments of any kind.
  • Businesses (when you buy or invest in a business).
  • Vehicles, including, but not limited to, motor vehicles, motorcycles, recreational vehicles, aircraft and boats.
  • Significantly Not as Described claims for wholly or partly custom-made items or an item purchased from a classified listing and picked up in person.
  • Donations including payments on crowdfunding platforms.
  • Items prohibited by the PayPal Acceptable Use Policy.
  • For Item Not Received claims, items which you collect in person or arrange to be collected on your behalf, including items bought in a seller's store location.
  • Industrial machinery used in manufacturing.
  • Anything purchased from, or an amount paid to, a government agency.
  • Stored value items such as gift cards and pre-paid cards.
  • Gambling, gaming and/or any other activity with an entry fee and a prize.
  • Payments sent using PayPal's friends and family functionality.
  • Payments sent using PayPal to any bill payment service.
  • Payments made using PayPal Payouts and Mass Pay or guest checkout transactions (i.e. not sent using your PayPal account).

Transaction eligibility for PayPal's Purchase Protection program

To be eligible for PayPal Purchase Protection you must meet all of the following requirements:

  • You have a PayPal account in good standing.
  • You pay for the eligible item from your PayPal account.
  • You respond to PayPal's request for documentation and other information within the time requested.
  • You open a dispute in the Resolution Centre within 180 days of the date you sent the payment, then follow our online dispute resolution process.
  • You have not received a recovery related to such purchase from another source.

Our online dispute resolution process

If you're unable to resolve a transaction related issue directly with a seller, you must follow our online dispute resolution process through the Resolution Centre to pursue a claim under our Purchase Protection program. You may also file a claim (Step 2 below) by calling us and speaking to an agent. The steps you must follow are described below, and if you do not follow these steps your claim may be denied:

Step 1: Open a dispute within 180 days of the date you made the payment. This might allow you to start a direct conversation with the seller regarding your issue with the transaction that may help resolve the dispute. If you are unable to resolve the dispute directly with the seller, proceed to Step 2. We will place a hold on all funds related to the transaction in the seller's PayPal account until the dispute is resolved or closed.

Step 2: Escalate the dispute to a claim for reimbursement within 20 days after opening the dispute, if you and the seller are unable to come to an agreement, or Paypal will automatically close the dispute. You can escalate the dispute to a claim for reimbursement through the Resolution Centre. The seller or PayPal may also escalate the dispute to a claim at this point. If you are making an Item Not Received claim, PayPal may ask you to wait at least 7 days from the transaction date to escalate the dispute.

Step 3: Respond to PayPal's requests for documentation or other information, after you, the seller or PayPal escalates your dispute to a claim for reimbursement. PayPal may require you to provide receipts, third party evaluations, police reports or other documents that PayPal specifies. You must respond to these requests in a timely manner as requested in our correspondence with you.

Step 4: Comply with PayPal's shipping requests in a timely manner, if you're filing a Significantly Not as Described claim. PayPal may require you, at your expense, to ship the item back to the seller, to PayPal or to a third party (which will be specified by PayPal) and to provide proof of delivery.

Proof of delivery means:

  • For transactions that total less than $850 CAN (or the foreign currency threshold in the table below), confirmation that can be viewed online and includes the delivery address showing at least city/province or postal code, delivery date, and the identity of the shipping company you used.
  • For transactions that total $850 CAN (or the foreign currency threshold in the table below) or more, you must provide signature confirmation of delivery.

Signature confirmation thresholds

Currency Transaction value Currency Transaction value
Australian Dollar: 850 AUD New Zealand Dollar: 950 NZD
Brazilian Real: 1,750 BRL Norwegian Krone: 4,600 NOK
Canadian Dollar: 850 CAD Philippine Peso: 34,000 PHP
Czech Koruna: 15,000 CZK Polish Zlotych: 2,300 PLN
Danish Krone: 4,100 DKK Russian Ruble: 48,000 RUB
Euro: 550 EUR Singapore Dollar: 950 SGD
Hong Kong Dollar: 6,000 HKD Swedish Krona: 4,950 SEK
Hungarian Forint: 170,000 HUF Swiss Franc: 700 CHF
Israeli Shekel: 2,700 ILS Taiwan New Dollar: 23,000 TWD
Japanese Yen: 77,000 JPY Thai Baht: 24,500 THB
Malaysian Ringgit: 3,100 MYR U.K. Pounds Sterling: 450 GBP
Mexican Peso: 10,000 MXN U.S. Dollar: 750 USD

Step 5: PayPal will make a decision (including automatically closing any dispute or claim), in its sole discretion, based on the coverage and eligibility requirements set forth above, any additional information provided during the online dispute resolution process or any other information PayPal deems relevant and appropriate under the circumstances.

Note that when you are making Digital Goods Micropayments Purchases, there are special rules that apply and that include pre-determined thresholds where Paypal may, at our discretion, reverse the transaction without requiring you to take further action. We may limit the number of automatic reversals that you benefit from, but, even if that is the case, you will still be able to follow PayPal's standard dispute resolution processes described above.

Dispute with us or your card issuer

If you used a credit card,Visa debit card or Mastercard debit card as the payment method for a transaction through your PayPal account and you are dissatisfied with the transaction, you may be entitled to dispute the transaction with your card issuer. Applicable card chargeback rights may be broader than those available to you under PayPal's Purchase Protection program. For example, if you dispute a transaction with your card issuer, you may be able to recover amounts you paid for unsatisfactory items even if they don't qualify for protection under a Significantly Not as Described claim with us.

You must choose whether to pursue a dispute with PayPal under our Purchase Protection program, or to pursue the dispute with your card issuer. You can't do both at the same time or seek a double recovery. If you pursue a dispute/claim with us and you also pursue a dispute for the same transaction with your card issuer, we'll close your dispute/claim with us. This won't affect the dispute process with your card issuer. In addition, if you pursue a dispute with your card issuer, you cannot pursue a dispute/claim with us later.

If you choose to dispute a transaction with PayPal and Paypal decide against you, you can seek to pursue the dispute with your card issuer later. If PayPal does not make a final decision on your claim until after your card issuer's deadline for filing a dispute, and because of our delay you recover less than the full amount you would have been entitled to recover from the card issuer, Paypal will reimburse you for the remainder of your loss (minus any amount you have already recovered from the seller or your card issuer). Before contacting your card issuer or filing a dispute with PayPal, you should contact the seller to attempt to resolve your issue in accordance with the seller's return policy.