Burned By PayPal

[jyl]

Sold my first eBay item using PayPal last month. Someone bought it for $72, I received confirmation of receiving a PayPal payment, I sent the item FedEx, and then PayPal noticed me the payment was made with fraudulent funds and reversed the credit to my account. Their position is that if a purchase is ineligible for "seller protection", which you don't know from the payment confirmation email they send you, then the risk of fraud is yours. The buyer is no longer registered with eBay and my item is gone.

I'm royally pissed, since the security that was breached and allowed the fraudulent payment to be made is PayPal's, so I don't see why I should have to pay for their vulnerability. Anyway, I'm probably going to dump PayPal and require a good old fashioned cleared check for any future sales.

Just posting this as a warning to others venturing into the PayPal world.

[tabs]

Another one......

I nevr have used Pay Pal, and I never will ......Only checks and they must clear before I send....

[will944]

Great....and I was just paid for an item I sold......

[andycook]

I have accepted many payments through PayPal and have not had any issues. Only difference is I require the people to pay through PayPal using a credit card of some sort. PayPal generally authorizes the card before before my account is credited. Even if the the buyer is perhaps over thier limit, it will authorize and they get slammed with a huge overlimit charge. Just my $.02.

[jyl]

Andrew, the PayPal payment in my case was via credit card as well. But they claim the payment was fraudulently made, whatever that means (details have not been forthcoming) so they reversed it.

[Joeaksa]

Check out www.ebaysucks.com

Remember that Ebay purchased Pay Pal. Never attach pay pal to an active bank account or debit card. I wait a week on any transaction, credit card or not. That gives me time to make sure that its not being done on a bogus card.

JoeA

[RickM]

Originally posted by jyl
Andrew, the PayPal payment in my case was via credit card as well. But they claim the payment was fraudulently made, whatever that means (details have not been forthcoming) so they reversed it.

This is what get's me. They have us pay through the nose to provide this service. Then when their authorization mechanisms fail you're on the hook. Talk about get nailed from every angle.

Class action suit I say.

BTW, I'd never take a personal check. If the check bounces or is bad in any way one may be stuck with bank charges and a black mark on one's record.

[widebody911]

PayPal has already lost one class-action suit. Hate to use the "R" word, but there needs to be some regulation in this sector of the finanacial industry. They're operating in new, uncharted territory, and they pretty much get to make up the rules as they go along.

[RallyJon]

There's always BidPay. Kinda like PayPal, but completely seller-biased. Check out www.bidpay.com for details.

Of course, when I see a seller who only accepts BidPay, I can't help but wonder about his ethics. Maybe to the point of avoiding him entirely. Remember that a transaction goes both ways, and there's always going to be risk for somebody.

[RickM]

So what can Paypal users do to protect themselves?

1- Open a sub checking/savings account and use it exclusively for Paypal transactions. When money goes in it's transferred immediately to the primary/host or other account.

2- After signing up with the CC (or changing the existing one) cancel the CC or report it stolen (to the CC issuer not Paypal) so the number is no longer active. Paypal wont bother you until it hits it's expiration date. Hopefully that's not for a year or two.

Will this approach work?

[mikester]

Only accept cashier's checks and money orders myself. If I get a personal check I will deposit it but I hold the item for 10 days before I will send.

[on-ramp]

Always insure your packages going out and make the buyer pay for it. If there's fraud involved, you can file a claim and get your money back (hopefully).

[stevepaa]

I do the same as Mikester, but I prefer US postal money orders. I really am leery of using Pay Pal. So if the seller won't accept cashier's checks, I don't bid. And I don't accept Pay Pal.

[BGCarrera32]

Cashier's checks and money orders are no guarantee either...they can be forged or have insufficient funds to cover the check after its been mailed. Those items also need to clear first before you ship anything.

Ask me how I know...

[K. Roman]

Here's what you could do.

Complaints about Paypal service should be directed to Rhonda Coale and Sarah Imbach. Sarah Imbach is VP Fraud Investigations and Appeals. Sarah can be reached by e-mail at simbach@paypal.com. Rhonda Coale works for Sarah and she can be contacted at rcoale@paypal.com. You may also call her at (402)-935-2233. Another avenue for handling complaints about Paypal is to contact the Nebraska Attorney General at http//www.nol.org/home/ago/ and fill out a consumer complaint form online. You can also call the Atty. General at (402)-471-2682 or toll free at 1-800-727-6432. It is VERY important that regulatory agencies learn about the despicable manner in which Paypal treats its customers. This will make them wake up and take notice.


http://www.paypalsucks.com/PayPalWhistleBlower1.shtml

[tabs]

Beyond only taking checks and letting them clear...I insure everything I ship unless it's only a couple a dollar item...also in the un politically correct trade that I deal in..I only ship to FFL or C&R Dealers....

Alas I am only a citizen again....

[Moneyguy1]

The whole idea of PayPal and e-bay lend themself to fraud. Unless I can verify the identity of the individual, I won't deal. Too many horror stories.