PAYPAL SELLERS BEWARE!!

NEW SCAM!

There is now an easy way for buyers on Paypal to get and keep both the art or antique (or any item) they bought from you, and then also get their money refunded from Paypal.

I know this is a long guide, but please read it all as there are very complex and burdensome requirements and pitfalls in the Paypal seller protection policies, and not all of them are spelled out.

This guide is to tell you of a bad experience and valuable lessons I learned selling overseas on eBay and accepting Paypal payments.  This could also happen on a domestic sale, so beware.

If you sell on eBay. and accept Paypal, make sure you have BOTH:

• On-Line tracking
• Signature confirmation

BUT, this is not enough!

If you are missing either of these, or if you have both and cannot ALSO provide proof to Paypal within a very limited timeframe, You will lose out! 

The buyer gets BOTH the item, AND their money back!

And there is much more to the process...

Simply meeting both of the requirements is not enough, you need to provide proof to Paypal of the delivery within a very limited timeframe.

If you are using the United States Postal Service, this means you must send it either:

• Registered mail, or
• Certified Mail

PLUS, you need to add:

• Signature Confirmation

This works out to a minimum of $8.00-$15.00 to send anything internationally, $6.00 domestically, and then you are STILL NOT GUARANTEED to have seller protection, and protect yourself from fraudulent claims by buyers on Paypal.

Why?

On international shipments, the USPS uses a pink return card to verify signature confirmation. You need to wait for this card to be signed, and returned to you, and then you need to fax a copy of rthe signed card to Paypal.

I know this doesn't sound easy, but it ONLY GETS WORSE!

Here are the problems:

• If you don't get back the pink card or other signature confirmation within Paypal's limited timeframe (happened to me) they get a refund.
• If you don't fax a copy to Paypal, they get a refund.
• The fax requirement does not appear anywhere on Paypal's website.
• The fax number (402) 537-5760 does not appear anywhere on Paypal's website.
• You need to call Paypal, wait on hold, complain, and then they give you the fax number.
• Paypal's representatives in Dispute Resolution are rude, abrupt, and very smug when you call, and seem to enjoy making it hard on sellers.  It is unbelievable, they can't wait for you to tell them you didn't do all of the requirements so they can have the thrill of telling you they will rule in favor of the seller.  Watchout for Rob employee # 7360 at Paypal, he is the worst.

You will be forced to give a refund to the buyer, even if you have:

• E-mails from the buyer saying they have the item
• Positive feedback indicating they have the item
• On-line tracking proof of delivery (and no Signature Confirmation)
• Signature Confirmation (and no on-line tracking)
• Have all of the above, but do not recieve, and fax, the signature confirmation to Paypal within a very small time frame.

Please note, that there is NO LIMIT to the amount of money that can be refunded to the buyer under the buyer's protection plan. 

Nothing prevents a fraudulent buyer from making large purchases, paying very small amounts for shipping and hoping that the seller doesn't pay for both on-line tracking and Signature confirmation. 

Plus, even if you meet all of the requirements, once the buyer has the tracking info sent to them from you, they can file an immediate claim on Paypal, which gets the clock ticking, hoping that they can get and keep the item, and that the timeframe expires before you can get the tracking proof, and the signature confirmation returned and faxed to Paypal.

Unfortunately, the truth is, selling on ebay and accepting paypal has become a risky business.  What I don't know, is the policy for Paypal if the items are sent via Fedex or UPS or DHL where there is electronic Signature confirmation.  After spending over an hour on the phone with Paypal, learning all of this, I never got around to asking.

One last note, if you use the eBay "make a mailing label" interface, they use the USPS, creating all of these pitfalls for sellers.  Also, if you don't send your packages within 2 days, Paypal simply keeps your postage money, with no refund, and the USPS will not accept the packages.  I know this is unlawful in California, but not surprisingly, they don't care.

I lost $330.00 on this scam, and it could have been worse.