Card payment service provider PayPal has announced that it will provide additional merchant protection against chargebacks. If merchants ship an online order that turns out to be unauthorised or fraudulent, PayPal will cover the reimbursement to the consumer's account.The new service will operate from October 1 and will be available to merchants who can provide proof of shipping and demonstrate they followed proper procedures.PayPal Australia's spokesman, Adrian Christie, said the new program was part of the company's push to develop its business as more than a card payment collection service.Christie said online payment security was often a difficult area for merchants, who do not want to use cumbersome arrangements that frustrate online or telephone shoppers and so cause them to abandon their purchases.The merchant security arrangement is already in operation in the United States. "It has a proven track record," Christie said.He said PayPal would also use analytics to identify risky activity and stop potentially fraudulent transactions before they occur.