eBay is testing an expanded version of its Buyer Protection program in Germany. PayPal Buyer Protection protects buyers from certain kinds of fraud when they use PayPal to purchase items. The program in Germany had covered PayPal buyers up to 400 Euros and applied only to purchases made from sellers who had 50 feedback points with a 98 percent positive feedback rating.

The expanded program raises protection to 500 Euros and eliminates seller feedback requirements. In August, eBay will begin a marketing campaign in Germany called, "Pay with PayPal and you're protected."

PayPal spokesperson Amanda Pires said they are able to extend the program to cover purchases from all sellers, even those with low feedback, due to internal systems that help manage fraud.

Interestingly, German law requires that all sellers, including eBay sellers, accept returns from customers for any reason (http://www.bloomberg.com/apps/news?pid=10000100&sid=a52B5.oiPXTA&refer=germany).

The company will not launch the expanded program to other international sites until they evaluate the performance of the program in Germany.

Pires said that all sellers in Germany will benefit from the increased confidence buyers will feel through the program.