EBay has announced that it will be offering full refunds with no cap later this year for those that buy with PayPal if a seller fails to deliver an item.

EBay owns PayPal – an online payment service that prides itself on its security – and it has taken off the prior cap on refunds for non delivery.

Previously eBay had capped the limit on refunds to $200, or $2000 if the seller had a consistently good reputation.

Confidence

PayPal spokeswoman Sara Gorman told USA Today that the changes reflect the service's increasing confidence in its ability to spot and block many fraudulent transactions before they occur.

We've contacted eBay in the UK to find out when and if the changes will be in effect for British users.