We’ve delved further into this issue for you. Hopefully this is all useful and good news, but if you still feel uncomfortable please note that you don’t need to sign up for Stripe. This is an additional service we want to offer Folksy sellers so they can still receive orders from customers who are unable to use Paypal, or who would rather not use Paypal.
Disputes & Chargebacks
The seller protection is much the same on PayPal and Stripe. On both platforms a buyer can claim the item hasn’t been received to open a dispute or Chargeback and you will be asked to provide evidence to prove that the item was sent:
There are two ways to open a claim in PayPal. Only one in Stripe.
In the case of a Chargeback (ie. when the cardholder queries the payment with their bank - this can happen through Stripe or PayPal), the bank will decide the outcome of the dispute.
In the case of a PayPal dispute (ie. where the buyer has opened a claim in PayPal’s Resolution Centre), PayPal decide the outcome of the dispute.
For both types of dispute, the evidence you will provide and the resolution process is much the same.
Paypal Seller Protection
For a transaction to be eligible for PayPal Seller Protection it must meet a number of criteria as set out here https://www.paypal.com/webapps/mpp/ua/useragreement-full?locale.x=en_GB#011
It’s important to note that PayPal Seller Protection is not a promise. It’s a set of guidelines for you to follow which will make it more likely for PayPal to rule in your favour.
Similarly a dispute against a transaction that meets the same criteria on Stripe is as likely to be ruled in your favour as it would be in PayPal.
As the resolution process for all disputes depends on the evidence you submit, we would recommend always keeping good records, using a delivery service that requires a signature on delivery where possible, and communicating well with your customers throughout the order process (eg letting them know when and how you have posted an order). Things that can help include: records of email communications, shipment tracking numbers, proof of shipment and delivery that includes the full delivery address, not just the city/town or postal code code, and proof of any replacements sent.
There is advice from both PayPal and Stripe to prevent disputes happening:
Distance Selling Regulations / Consumer Contract Regulation
To answer your other question, the Distance Selling Regulations are the same, whether you are paid through Paypal or through Stripe. You can read those here: