How good is PAYPAL protection?

Tim_Tozer

Having just been caught with some counterfeit software on EBAY I'm £52 out of pocket! I'm going to try and claim it from PAYPAL and hope they will refund me as they promise. However I'm wondering how I stand with my usual statutory rights. I note PAYPAL will only pay up on three claims a year but is that legal? - When buying by credit card it would seem all purchases are covered (subject to conditions) so is there any way PAYPAL or EBAY would be under similar obligations - after all they priofited from my purchase? - As the use of EBAY and therefore PAYPAL is becoming so popular now it would seem protection for just 3 transactions is less than generous, if not rather dangerous! -

masonic

You always have the option to take the matter up with your credit card company, even if you have already complained to paypal and they did not refund you. It is normally more convenient to go through paypal first, but not compulsory.

nk2005

Tim_Tozer wrote:

Having just been caught with some counterfeit software on EBAY I'm £52 out of pocket! I'm going to try and claim it from PAYPAL and hope they will refund me as they promise. However I'm wondering how I stand with my usual statutory rights. I note PAYPAL will only pay up on three claims a year but is that legal? - When buying by credit card it would seem all purchases are covered (subject to conditions) so is there any way PAYPAL or EBAY would be under similar obligations - after all they priofited from my purchase? - As the use of EBAY and therefore PAYPAL is becoming so popular now it would seem protection for just 3 transactions is less than generous, if not rather dangerous! -

Paypal are quite good at chargebacks so you should be OK as long as it indicated on the Sellers page that you were covered by upto £500 compensation and not just the standard protection, when you buy something through paypal on a credit card you are transfering money to your paypal account and not the seller, paypal then transfer the money to the seller, this is how they get around the credit card protection rules, credit cards charge Paypal 2.5% so I don't suppose their charges are too bad

masonic

nk2005 wrote:

Paypal are quite good at chargebacks so you should be OK as long as it indicated on the Sellers page that you were covered by upto £500 compensation and not just the standard protection, when you buy something through paypal on a credit card you are transfering money to your paypal account and not the seller, paypal then transfer the money to the seller, this is how they get around the credit card protection rules, credit cards charge Paypal 2.5% so I don't suppose their charges are too bad

Even if Standard Protection is displayed on the listing, you can do a paypal chargeback for goods not received (read: goods not sent by trackable means).

On the subject of credit card payments, money is not transferred into your paypal account first (also, if you are refunded, it goes straight back on to your credit card). Paypal is held responsible for the transaction, though, so they are the ones that get "charged back" in a credit card dispute, which is probably why they don't like you doing it.

tab99_uk

they are rubbish and need to be closed down.

Hintza

tab99_uk wrote:

they are rubbish and need to be closed down.

A well reasoned and thought out response???!!!!

bleugh

https://www.paypalwarning.com
https://www.aboutpaypal.org
https://www.paypalsucks.com

paypal are alright for the buyers and are ok for SMALL VALUE transactions only
personally i wont trust transactions >30 quid with them as i've lost £200 in the past

use your noggin and you'll be ok, paypal offers NO protection for stupid sellers that buy 'mega cheap plazma tellie, buy it now £499 0 feedback seller'

or likewise to sellers that insist on posting to 0 feedback users with the name 'omar bin nigerian' from central london with an unregistered address

robowen

If the seller has withdrawn his/your money out of his paypal account...paypal wont be able to get it back. They cant go to his bank account and raid it. They can only get the contents of his paypal account.

If you are going to pursue this seller, then do the chargeback before warning the seller of your intentions.

rob

glen1977_2

any ideas what i should/could do?

back on the 13th august i sold my mobile phone to somebody in glasgow who paid the £80 straight away using paypal. the buyer then received the item a few days later and left me positive feedback on ebay.
from then i heard nothing until the 10th september when paypal contacted me informing me that they had 'frozen' the £80 of this sale and therefore my paypal account showed a minus £80. they were to investigate possible 'fraudulant' payment.
i checked out the buyer of my item who had now been removed from ebay, and looking at her last 8 or so transactions, she had been selling items but not sending them out to her buyers. obvious why she was booted from ebay!
paypal were notified about my frustration on this subject - the fact that it was nearly a month since the transaction and so on. all they could say was i was not covered by the payment protection. great. i honestly thought any transaction through paypal was covered.
since then i used paypal for a couple of purchases i made and the -£80 was added to my next payments.
about 6days ago paypal have informed me that they were right to take this payment back from me and that is the end of the matter. so i am now missing my mobile phone.
is there anything i can do? i have notified the police in glasgow and told them that paypal will give them the details of what has happened, but the police there said they do not deal with paypal/ebay incidents.
what next - do i just write-off the mobile phone?!?!?!?!?
thanks

masonic

glen1977 wrote:

any ideas what i should/could do?

Now I may be jumped upon here for getting this wrong, but I believe that paypal normally back down if you can show that the item was sent by trackable means to the paypal verified address of the buyer. I presume, therefore, that you either did not send by trackable means, or sent to an unverified address. I have seen people advised to abandon their paypal accounts and wait it out, but you run the risk of legal action if you do. Personally, I think I would be looking for some legal advice if faced with this situation.

richto

ONLY if you are covered by seller protection - meaning that the buyer had a credit card confirmed delivery address and completed the expanded use process.

We refuse to accept Paypal for orders over £50 unless the address is confirmed, and dont take Paypal at all unless the account is at least verified.