PayPal is expanding its buyer protection program on eBay.com by boosting coverage from $500 to $1,000 and opening the program so it applies to more sellers.

Currently PayPal's program offers buyers $500 for non-delivery of items, and for the delivery of items that are "significantly not as described." That amount will be increased to $1,000 under the expanded program that goes into effect on November 8, 2004.

eBay sellers in the U.S, Canada, Germany and UK can offer PayPal Buyer Protection by maintaining a 98 percent positive feedback rating and having at least 50 feedback points. Under the program's expansion, eBay will include feedback from repeat trading partners instead of counting only unique feedback ratings. For transactions that do not qualify for PayPal Buyer Protection, PayPal will continue to offer its buyer complaint process, and eBay will continue to provide its standard purchase protection of $200 coverage with a $25 processing fee.

In addition to eBay.com, PayPal Buyer Protection will also continue to be offered on eBay sites in the U.K. and Canada at an expanded rate of GBP 500 and $1250 CAD, respectively, beginning November 22, 2004. In Germany, eBay buyers will continue to receive coverage of up to EUR 400.

Buyers should look for the PayPal Buyer Protection icon in the "Seller Information" box on an eBay "View Item" page. Both buyers and sellers should examine the terms and conditions of the protection plan carefully. For example, buyers must file claims within 30 days of the PayPal payment to be eligible for protection, and sellers must be able to provide original photos of the actual item they are selling, among other requirements.

Sellers should also note their liability is 100% of the selling price of the item: "For items worth more than $500, if the case is decided in the buyer's favor, PayPal will reimburse the buyer for the maximum amount of coverage. In addition, PayPal will make a best effort attempt to recover the remainder of the refund from the seller."

Sellers wishing to opt-out must call PayPal customer service at 888-221-1161.

http://www2.ebay.com:80/aw/marketing.shtml#2004-09-30083249