The Paypal seller protection policy for USPS delivery confirmation for packages mailed worth $250.00 or less and USPS signature confirmation for those over $250.00 may not be sufficient to protect the seller from buyers who report packages not received for which they declined postal insurance.
If the post office loses the package and delivery cannot be proven to Paypal, the seller has the dollar amount of the sale reversed from their paypal account.
To avoid financial loss when merchandise is lost or stolen while in the carrier's possession, the package must be insured. (Not mentioned in their seller protection policy) If insurance is purchased, Paypal logic follows that the buyer will get reimbursed through PayPal, the seller will get reimbursed by the carrier, and the carrier absorbs the loss due to their error.
As a result, the seller must consciously make a decision whether to insist that their customers purchase insurance for merchandise paid through PayPal.
If the package is not insured, the seller automatically assumes non-delivery risk if parcel is lost or stolen prior to delivery.
If the parcel is delivered as indicated by USPS delivery confirmation or USPS signature confirmation and the package is subsequently stolen or reported not received by the
buyer, PayPal will protect the seller under these circumstances.
So postal insurance should be charged to the buyer (or paid by you) to insure the buyer cannot omit insurance then tell Paypal they want their money back because the post office lost the package.. Beware.
Insurance claims. Who gets paid? Make sure you understand the process.
The Seller pays for the insurance
(They usually collect the insurance fee from the Buyer)
All insurance claims are filed by the Seller
Insurance payment is sent to the Seller
The Seller passes on the insurance payment to the Buyer.
