Paypal Seller Protection and Chargebacks

Oscartheposcar

I'm considering selling my iPhone on eBay to help raise funds for the new model.
I've read many horror stories about scams and so on, but most of them seem to relate to things I wouldn't consider doing (sending items to Nigeria, responding to clearly fraudulent emails and so on).
However, I am a little concerned about PayPal, specifically what would happen if the buyer initiates a "chargeback" after the item has been sent. A Daily Telegraph article explains what I mean: (can't post links, but Google "PayPal made to pay £220 after eBay mix-up")


I also note something about Royal Mail's Special Delivery service perhaps not meeting PayPal's requirement for an online signature to prove who signed for it on delivery?

On PayPal's own website it states "Sellers who accept credit card payments run the risk of receiving chargebacks. Most sellers factor potential chargeback losses into the cost of doing business" - so if accepting PayPal is compulsory on eBay, you're basically forced to take a risk of losing the money you thought you'd been paid?

So, my question to anyone who has sold successfully on eBay is what would happen if
1) I only sell to a UK buyer
2) I check that their postal address has been verified with PayPal
3) Send it via Special Delivery (despite my doubt about the proof of delivery they provide)
But in a few days or weeks, the buyer claims their card was stolen? Would seller protection provide any protection at all?

This sounds paranoid, but I couldn't afford to write off two or three hundred quid or "factor it into the cost of doing business".
Thanks for any advice.

macfly

Special Delivery is as good as it gets. It's true there is no person to person delivery service, but couriers don't do that either to my knowledge. It's address to address. There are hundreds of phones for sale on ebay. Just do it.

cyberbob

Special delivery is guaranteed to e tracked so if you don't get proof of delivery you would be able to claim off Royal mail. To defend against a paypal CC chargeback for fraudelant use of a Credit card you only need proof of posting to defend against this one. So you just need to keep that for 6 months.

Most people who have problems with paypal it's due to them not understanding how paypal works. Your doing the intelligent thing and enquiring first. Most newspaper articles that report problems forget to mention the reason the problems occur

so to summarise.

1/ Proof of posting will protect you from fraudulent Credit card charge back (keep for 6 months)

2/ Royal mail special delivery is guaranteed tracked and signed for so you have a claim against them if something goes wrong. It has insurance up to £500 you can pay for more.

3/ ebay set your seller preferences to exclude those with 2 or more unpaid item strikes and without a credit card on file (that gets rid of most scammers)

4/Make sure your listing is accurate with lots of photos.

5/ Only send to the paypal address when paypal say OK to send with big tick in box. It no longer matters if the address is confirmed or not.

6/ Paypal will more than likely if your a newish or infrequent seller hold your money for up to 21 days or until positive Feedback received this was brought in when buyer and seller protection was increased 2 years ago. You need to send the item as soon as PP tell you its OK to send.

7/ Send the item within 7 days of auction end.

theonlywayisup

I concur with the comments by macfly and bob.

I would probably add something to the listing along the lines of....

IMEI number taken for security - maybe add the last 3 digits.
Invisible security markings on phone.
I do not ship to Nigeria.

Go for it and good luck. If you get stuck or don't feel happy about it, come back here for advice.

soolin

I would actually state clearly that you are aware of the 419 scam and will not ship overseas. Then remember to set your seller preferences very tightly.

sach160

I'm afraid I have to disagree with the other posters from my experience. The shipping address must be shown on the proof of shipping receipt for Paypal seller protection, and Royal Mail do not do this. I had a case rejected for this reason.

If you google you will find many cases of Paypal behaving like this. I think it's disgraceful and would warn extreme caution to any seller on ebay selling high value goods on ebay.

katep23

I have had two POP's recently; the first one had no address on so when I went back to the Post Office I queried it and they said just to write it on!

The second POP they provided me with after I queried the first one had the full address on it though so they obviously can do it if you specifically ask for it before they print the receipt.

alien1234

Sell on gumtree for cash on collection?

soolin

sach160 wrote: »

I'm afraid I have to disagree with the other posters from my experience. The shipping address must be shown on the proof of shipping receipt for Paypal seller protection, and Royal Mail do not do this. I had a case rejected for this reason.

If you google you will find many cases of Paypal behaving like this. I think it's disgraceful and would warn extreme caution to any seller on ebay selling high value goods on ebay.

OLD THREAD ALERT

Firstly this trhead is 10 months old so I suspect the phone has long gone. Secondly we are talking special delivery and yes the posting receipt shows the buyer address, if you just have a till receipt for monies paid for postage then you haveb't used special.

terra_ferma

cyberbob wrote: »

Special delivery is guaranteed to e tracked so if you don't get proof of delivery you would be able to claim off Royal mail. .

I know this is an old thread, but I have a relevant query to add.
I seem to remember someone stating that if this happens they only refund you the cost of the service paid for, I think that case was about recorded delivery and they go the whole 74p back.
Does anyone remember that, or has had the same experience?

PS agree about old post, although we can make allowance as it's a new member, but let's keep things relevant :-)

soolin

terra_ferma wrote: »

I know this is an old thread, but I have a relevant query to add.
I seem to remember someone stating that if this happens they only refund you the cost of the service paid for, I think that case was about recorded delivery and they go the whole 74p back.
Does anyone remember that, or has had the same experience?

PS agree about old post, although we can make allowance as it's a new member, but let's keep things relevant :-)

If an item is lost then the full amount can be claimed. The repayment of the recorded delivery cost is when , as often happens, the item is delivered but the tracking does not update. Then you are in the horrible position of RM saying item arrived but we will repay the 77p, but will not update the online message, *and* losing a paypal claim.