EBay to expand PayPal protection

EBay Inc. is expanding the protections available to people who use its PayPal payment service for transactions on EBay’s Internet marketplaces.

EBay executives said buyers who pay for items with PayPal would be eligible for full refunds if a seller failed to deliver an item. Previously a buyer’s coverage was capped at $200, or $2,000 if the item’s seller enjoyed a good reputation on San Jose-based EBay.

EBay sellers who accept PayPal as a payment method -- as nearly all of them do -- will also get unlimited protection against a charge being reversed. Such reversals can happen if a buyer claims not to get an item or if a payment is fraudulently made. Previously sellers’ coverage had an annual limit of $5,000, and applied only for shipments to the U.S., Canada and Britain.