PayPal is launching Payment Review later this summer in order to reduce fraudulent transactions. PayPal will identify those transactions it believes may pose a risk and will keep those transactions pending while it investigates them. Once PayPal completes the transaction, sellers will be protected 100 percent - on those transactions. (All other transactions will be covered under the seller protection policy, as they currently are.)
PayPal said it believes the new procedure will have a big positive effect in reducing chargeback issues for sellers.
Jeff Clementz, Director of Product Marketing at PayPal, said it is optional for sellers, who may go ahead and fulfill pending transactions, but those transactions would not be covered under the Payment Review policy.
Clementz said when PayPal identifies a risky transaction and holds it, it will have clear messaging to buyers that it is PayPal - and not the seller - who is holding up the transaction. He said the hold time would be short, but would not be more specific at least until closer to the feature launches.
In related news, eBay took its PayPal Security Key out of beta testing and is making it available to all customers. The Key has a promotional one-time fee of $5.00 for PayPal and eBay account holders in the U.S. It will also become generally available in Germany and Australia, with more countries to follow.
The PayPal Security Key is a small electronic token that generates a unique security code approximately every 30 seconds. Members can use this code, along with their user name and password, to sign into both their eBay and PayPal accounts, helping to prevent unauthorized users from accessing them.
PayPal is launching Payment Review later this summer in order to reduce fraudulent transactions. PayPal will identify those transactions it believes may pose a risk and will keep those transactions pending while it investigates them. Once PayPal completes the transaction, sellers will be protected 100 percent - on those transactions. (All other transactions will be covered under the seller protection policy, as they currently are.)
