I went to Customer Support and typed defect and got the following:
"Note: As of August 20, 2014, a new measure - the transaction "defect rate" - will replace the four individual detailed seller rating requirements in evaluating seller performance. This new rating may impact your status.
The following transaction-related defects affect your defect rate and seller status:
- Detailed seller rating of 1, 2 or 3 for item as described
- Detailed seller rating of 1 for shipping time
- Negative or neutral feedback
- Return initiated for a reason that indicates the item was not as described
- eBay Money Back Guarantee (previously known as eBay Buyer Protection) or PayPal Purchase Protection case opened for an item not received or an item not as described
- Seller-cancelled transactions
- Starting with the August 20 evaluation, to meet eBay's minimum standard, sellers can have up to a maximum 5% of transactions with one or more transaction defects over the most recent evaluation period. A maximum 2% will allow a seller to qualify as an eBay Top Rated Seller. Only transactions with US buyers count.
Please read about important updates to how seller standards are calculated."
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Non payers should get unpaid item strikes and be added to block bidders lists. Period.
