PAYPAL POTHOLES

Something to think about...PayPal does offer a 'Buyer Dispute', but they do not offer a 'Seller Dispute'.

The System Is Broken

It is very important for Seller's on eBay to be aware of the PayPal Potholes some 'scam artist' buyers will try to steer you into, in an attempt to steal your merchandise.

Credit Card Chargeback

The Scam: Buyer pays for merchandise with a Credit Card through PayPal. Buyer claims they never got the item. Buyer issues claim through the Credit Card company that they never got the item. The credit card company issues a chargeback against PayPal, and PayPal in turn passed the chargeback to YOU, the seller. That's right, that money will be taken out of your account. Even if you provide PayPal with PROOF of delivery with Delivery Confirmation, they will not reverse that charge against your account. Image this happens after you sell a $500.00 autographed Mickey Mantle baseball. Don't image, it happened to me. They got their $500.00 back and a $500.00 Mickey Mantle autographed Ball.

PayPal says they have chargeback protection but that 'protection', and I mean this literally, is a joke. After you read through their chargeback protection policy, the bottom line is, the only time you are protected is when you resolve the issue with the buyer through the PayPal claim process, and THEN they do the chargeback. The problem is, it NEVER happens that way. PayPal knows that. The buyer always issues the claim with the credit card company FIRST. In that case, you have no protection from that chargeback. So, what kind of protection is that?

Item Not As Described

Buyer states after receiving item that the item was "Not as Described". They file a claim, you agree to refund their money. Problem is, once you make that agreement, PayPal immediately refunds their money...BEFORE you get your items back. You must be aware of this. It seems simple enough but it bares outlining here...DO NOT have PayPal refund their money until the item is back in your hands. You have absolutely no recourse if PayPal issues the refund prior to you receiving your merchandise. The [PayPal] system is such that if you do NOT state you will agree to a refund only after the item have been returned, PayPal simply issues the refund. Remember, during the claims process to request explicitly, the buyer to return the items FIRST!

The Insurance Scam - The Importance? of Delivery Confirmation

The Scam: Buyer states they never received their item. They paid via PayPal. Without Delivery Confirmation you have no proof of delivery.

Also Delivery Confirmation only confirms the item was delivered. Some buyers will claim that the item "wasn't delivered to my address!"

 Historically PayPal will grant refunds in this case, even when you produce Delivery Confirmation - it has happened with items I have sold. If you used insurance with your delivery and you look to get your money back through that process, if the buyer does not sign the insurance form that states they never received it, you obviously never get the money...you NEED their signature. But, if they do sign the insurance form, and you can somehow prove they did receive it, their act is considered a Federal Crime which is a Felony, and you have solid recourse in having this person prosecuted under Federal Law.

PayPal Customer Service Number:

 1-888-221-1161

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Safe Bidding Everyone

Mark