Paypal Warning

udydudy

soolin wrote: »

There are two types of paypal chargebacks, firstly for item not received which is why ALL items over £34 MUST be sent trackable. It is there in the terms and conditions that we sign up for when we choose to take paypal..........

I have always used paypal as the only mechanism to be paid for any of my sales, I also sell only to ebayers with UK addresses and also ensure that no buyer tries buying too many times at my auctions.

There is a recent fraud going on in ebay where in the purcahse is done on an account in ebay and then paid through by paypal. both the accounts have the same address so most sellers send the item thinking it is a genuine transaction. after 2-3 days of the payment coming in to your paypal account the paypal account holder files fradulent transaction report with paypal which results in paypal withdrwaing the funds from your paypal account.

After this Paypal ignores any requests for the money to be restored even if you give them tracking information quoting that the paypal transaction was fradulent.

Having noticed that these buyers have bought 40-50 items in the past one month and I would suspect each of these have been reported the same way. EBay has not done anything to stop this. I have sent ebay umpteen compalints ony to be responded by a standard template reply.

Paypal has not even bothered to respond as far as they are concerned they removed the money form my account and they could notcare two hoots!.

Both these organisations seem to be above morals and do not accept any responsibility. As long as their coffers are filled they do not care.

SO the best I can do now is close both accounts and forget selling on ebay anymore.!!

Piper1_2

Same thing happened to me. I have reported to Ebay, PayPal and the police. I have a case ref no from the police but heard nothing more. Ebay have responded to emails saying they can't tell me what they have done to the buyer due to 'data protection' - greta, wheres was my protection!! These fraudsters shouldn't be protected!!!!This happened in December - I then had the email from PayPal saying the payment had been unauthorised so I now had to pay the money back to PayPal, and now in May I recieve a letter from 'Debt Recovery' acting on behalf of PayPal wanting the £500 to be paid. I don't have £500 especially not for something I sold in good faith. If Ebay / PayPal new this user was a conman why did they let him/her carry on buying goods - he/she should have been removed. I know I was not the first person this had happended to as I received emails from other uses saying he/she had done it or tried to do the same thing to them.IF EBAY/PAYPAL ACTED ON WHAT PEOPLE TOLD THEM WE WOUDLN'T BE IN THIS MESS - THE ONLY REASON I USED PAYPAL IS I THOUGHT THEY WERE SAY AND THAT YOU WERE PROTECTED.If anyone has any help they can offer me it would be greatly apprecited.Thank you.

jhobhouse wrote: »

I would advise anyone using Paypal to stop now. please read on:

I recently lost in a ‘Chargeback’ case on my Paypal account. I am still fighting this case as I believe not only am I not at fault but the fraud is a result of the combined incompetence and loopholes in the Paypal / Ebay system. To summarise briefly, I sold a camera on Ebay for £772, the buyer payed by Paypal and once the money had cleared into my Paypal account the buyers decision was to come and pick up the item in person, which they did. Soon after I received an email from someone in the USA claiming to be the owner of the Paypal account I had been fraudulently paid from. I tried to recontact the buyer without success. I then received emails from other sellers on Ebay who were having trouble with the buyer. I passed all this information on to both Paypal and Ebay expecting some sort of action on this very serious issue. Nothing was done – it seems Paypal and Ebay are happy to ignore fraud taking place on their sites as long as the money keeps rolling in.

Since then despite my protests Paypal have reclaimed the money from my account putting my balance in the negative. I phoned Paypal but was told it was impossible to speak to the resolution centre, however the representative I did talk to told me that under no circumstances could Paypal charge my credit card or bank account for the negative balance – I would have to log in and action that myself in order to keep using the account. They have gone back on their word and charged my credit card. The total they have taken from me including their charges is £817.58

To cite an analogy, if my credit card is stolen and someone spends £200 on it in a supermarket and I report the theft, the supermarket don’t get forced to repay the £200. They, as the seller, are not at fault in the same way I am not. The fault lies with those who let the fraud happen.

Paypal say the following on their website:
‘In a dispute over a chargeback, the decision is ultimately made by the credit card company and PayPal cannot control the outcome.’

Not only is this a sad statement of their shirking of responsibility, but I feel it does not apply to my case, where not only had the funds cleared, but more importantly I had done all I could to alert them to the fraud taking place and they did nothing. I cannot seem to find out who Paypal are regulated by.

Throughout the experience I have received nothing but template emails in response to my detailed emails which included requests for them to call or email me personally. This lack of personal interest in a case which has put me into a debt I will not be able to clear for some time has upset me a great deal.

If anyone has any advice or has been in this situation i would be very grateful....

schony

I sold an item for £ 60 to a UK buyer at a confirmed address. All was ok and suddenly 2 or 3 weeks later paypal inform me that the buyers bank demanded the money back as the buyer had insufficient funds in his account to cover the amount. Pay pal told me this after they took the payment back, no ifs ands or buts, no discussion. Was that legal? Surely the buyers bank was at fault and they lost their money and should reclaim it from their account holder? Any way its gone now. Totally unconnected to the previous complaint Paypal have now permanently limited my account. I cannot pay in, withdraw, £0 balance any way, and CANNOT CLOSE my account. Surely this is wrong. If they wont allow me to do business and run the account they surely cant force me to keep the account open?. I must say that the first thing I did when they said my account was permanently limited was cancel my direct debit. I have heard the horror stories before.Do they have the right to retain information on me if I am not doing business with them any more?

custardy

was seller protection in place?
did you post with a signed for service?

marleyboy

soolin wrote: »

Scammers will target those new users or naive ones who don't understand how it works, and this is what probably happened here. The fact that you allowed collection for paypal item means you have no comeback at all against paypal.

To be safe when using paypal goods must be sent to a confirmed address, and to stop a chargeback proof of delivery must be obtained. Any seller who does not follow those basic requirements will be targetted by scammers..

Agreed, but isnt that what Paypal is supposed to be securing the customer from, the majority of people assume that once cleared by Paypal, there is to be no comebacks from scammers, (hence the extra service charge we pay to them to cover it), in that respect PAYPAL is no different to a debit card, or a chequebook.

Blacksheep1979

jhobhouse wrote: »

To cite an analogy, if my credit card is stolen and someone spends £200 on it in a supermarket and I report the theft, the supermarket don’t get forced to repay the £200. They, as the seller, are not at fault in the same way I am not. The fault lies with those who let the fraud happen.

Actually they do and that's why companies will usually only ship to registered addresses and don't let you pay over the phone and pick something up without proof of having the account or pay in the shop without the pin no. etc.

Sorry bit harsh what has happened but you haven't shown due care here, the real warning should be don'tlet someone pay by paypal and collect.

aakayb

I have just had paypal transaction reversed a few days ago, even though:

1) I have sent the item to a confirmed address
2) I have sent the item within 7 days
3) I have a premier account
4) Item is a tangible good
5) I have proof of postage (Roal Mail Special Delivery)

Paypal have said it was a fraudulent transaction and it is not eligible for seller protection even though all the above points are covered. I don't see what more I could have done to avoid this chargeback.

If anyone has any ideas how I could this resolved, please let me know.

Blacksheep1979

have you withdrawn the money? If so tell paypal to sod off, if not you're going to have to try pursuade them which isn't likely

C_Ronaldo

How was the OP meant to know the buyers account had been hacked,

aakayb

Blacksheep1979 wrote: »

have you withdrawn the money? If so tell paypal to sod off, if not you're going to have to try pursuade them which isn't likely

I withdrew the money for the relevant transaction, but the chargeback happened 10 days after the transaction, by which time I had sold another item. So the money from the transaction after was frozen and then given back to the buyer.