WHY PAYPAL DO NOT COVER ANYMORE GLOBAL TRANSACTION

Payments + Shipping & Fulfilment
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Topic summary

A merchant discovered that PayPal Seller Protection may now only cover transactions in specific countries (France and the US) when using PayPal with Shopify Payments, rather than providing global coverage as before.

Key concerns raised:

  • Merchants weren’t notified about this significant change in protection coverage
  • Unclear whether the higher PayPal processing fees (1-2% extra) are justified without international fraud protection
  • No apparent way to restrict PayPal to only domestic transactions

Specific case:
The merchant received an order from Uruguay shipping to the US (with a US IP address) and is uncertain about coverage eligibility.

PayPal’s response:
PayPal reportedly told the merchant that transactions processed through Shopify are no longer routed to their PayPal account and therefore aren’t covered by PayPal protection at all.

Current status:
The merchant is considering removing PayPal as a payment option entirely due to lack of international protection and inadequate support from Shopify’s customer service team. The issue remains unresolved with no clear guidance on mitigation settings or transaction routing.

Summarized with AI on October 30. AI used: claude-sonnet-4-5-20250929.
1

I see in shopify help about PAYPAL

If your customers use PayPal as a payment method, then you might be eligible for PayPal Seller Protection. If your customers place their order using PayPal wallet with Shopify Payments in France, or PayPal Wallet with Shopify Payments in the United States, then you might be eligible for PayPal Seller Protection.

Seller Protection protects you from chargebacks, reversals, and claims for the full amount on eligible payments due to an unauthorized transaction, or an item not received.

So it mean that paypal protection do not cover anymore global transactions only US transactions ?

why merchants have not being advice of this potential RISK.

and why to pay 1 or 2% more to use paypal if it does not cover anymore protection fraud from international customers.?

2

HI thank you for your email ,but i do not see see any setting in shopify for paypal mitigation , and to be honest if paypal do not cover anymore global protection there is no point to use it because i will receive international payments with paypal that will not be protected better to eliminate paypal from my merchant account.Or there is a way to avoid international paypal payments?

3

For example today i received a payment from a customer from uruguay to ship to the US. The ip show a us ip address, is this cover ? or not? there is no one in shopify to ask plus shopify customer support is so bad and basic they only read the same help portal that we can read online. I called Paypal for this transaction today and paypal told me that because the paypal transaction in shopify are not routed to my paypal account anymore they are NOT COVER at all by the paypal protection.

4

HI thank you for your email ,but i do not see see any setting in shopify for paypal mitigation , and to be honest if paypal do not cover anymore global protection there is no point to use it because i will receive international payments with paypal that will not be protected better to eliminate paypal from my merchant account.Or there is a way to avoid international paypal payments?