Some interesting bits of information explaining how and what is a PayPal chargeback and exactly how it works in relation to PayPal. Might be interesting to some.
Found this interesting post on a PayPal procedure I have never heard of. Apparently they have a “rolling/minimum reserve” a portion of your money from transactions they hold I presume just in case of chargebacks or other “incidents” you would think the fees and seller insurance would cover that. Whats interesting in this PayPal users case is they already paid $15K in fees and PayPal took around $30K out of there funds.
Another satisfied eBay seller? read on. Quite a few good points raised in this story, basically shows eBay’s supporting scamming buyers left and right with no appeal for you the seller.
Just a small collection of various comments from people on their experience with PayPal, some are short stories, they reveal a lot about how PayPal treats people.
From todays Daily Mail. The classic bid on item, win it for stupid low price, get sent a photo of the item. This scam is older than eBay, yet still manages to work very well, popping up from time to time. A bad seller will put a tiny disclaimer somewhere in the listing that it is really for a picture/photo/artist rendition of the item. Way back it used to be hidden using clever HTML and Java to cover it up when eBay used to allow scripts and things in ads.
Here are few random random quotes/stories from users about there PayPal experience. US and UK PayPal users comments are here, there is even a comment from a (ex?) PayPal employee.
“Paypal is well known for freezing accounts for any reason and for inconsistently applying their own rules.”
Digital goods and PayPal just don’t go, we know that, but what about services? seems there not protected either if this is anything to go by. Here we have a story of a web designer who did everything right and everything went wrong, even when PayPal was presented with the huge string of back and forth emails between the 2 parties which made note the client was happy and then the email which was basically saying i’m going to scam you ha! PayPal even tried to weasel there way out over definitions of wording, you try that with them and see how they react very 1 sided. In the end PayPal decided to not chase the designer for the money but he still loses the money.
Stumbled across a few strangely relevant Wikipedia articles that could well be applied to eBay, PayPal. First up “Winners curse” which explains what some might say is auction fever with a negative end overpaying for something just to get it, second up is “Buyers remorse” which is actually covered in various eBay/PayPal protection programs (or so they say) it does have a section but is not really enforced and finally “Friendly/Chargeback fraud” which is just way too common with PayPal and people scamming away for free stuff and then PayPal slam you with the bill (so much for seller protection…)
Yes as the title says, here is a really odd PayPal dispute/chargeback/robbed seller story. Basically in some countries PayPal have a temporary credit facility called “Pay me later” 30/90 day credit I think it is anyhow… someone bought a sellers laptop paid for it using this PayPal issued credit (using a fake ID of course), when the real person disputed it PayPal reversed the funds from… PayPal! now PayPal vowed to work with the buyers credit card company to get it sorted who are…. PayPal in this case! now PayPal also decided to issue the seller a chargeback fee from PayPal for PayPal! getting good this. Go read up and get confused.
Another few comments from various places from various users of eBay that once again don’t paint the wonderful picture eBay would like us to see. The usual suspects none paying bidders, masses of Chinese wholesale crap and general poor service.
Came across this one, not sure what to say on it. Someone was selling there in game items for real money cash (i’m sure this goes on all day long), all was going well until the next day when they got a email from PayPal account “unauthorized account activity” and the money reversed (charge back?) with PayPal chasing the seller (as usual). Now i’m not even sure if digital items are allowed to be sold and payments put thru PayPal I know eBay no longer allow it and there must be a physical item to go with it at least. This would seem to be a excellent scam to gather up free game items or even worse virtual currency’s which the scammer could then sell/use for whatever.
Strange case this one, buyer buys a laptop it does not appear, tracking numbers (this is the interesting bit) say it does, buyer wins case anyhow… around a month later the case is reopened this time siding with the seller based on the tracking info. PayPal state they “may” take the money back regardless. Now the amount of times I have heard there is no way a case can be reopened and here one is reopened… shows nothing is quite as simple as it seems with PayPal also the choice of wording was a bit bad “may” you can never get a straight yes or no with them. Also it seems they only bothered to check the shipping info once (or did they?) as it did not work the 1st time hence the buyer winning, it would be all to easy to mistype a URL or a number.
A video detailing one sellers story dealing with a slightly nut job buyer who filed a chargeback and had the payment reversed by PayPal under “unauthorized charge” when the buyer signed for the item and a few other weird twists in the story, dispute after dispute for what ever reason all relating to this one item in a back and forth battle. The thing is this buyer was doing this regular to various sellers for varying amounts. Eventually the seller won (got a lotto ticket?)
PS: She reveals a interesting fact right at the end, with the BBB (Better Business Bureau) that PayPal have a “A++” rating, yet they have 6,600 or so complaints against them… the reason you may ask? apparently one of the head people from PayPal or eBay is on the BBB’s board of directors… think about that…
Short story about a seller who sells his item, only to have a chargeback done against him by the buyer outside of PayPal/eBay (Visa code 53?) for item not as described, which according to PayPal is not covered under their seller protection. The buyer was able to get the funds reversed apparently on the basis that the seller refused to send a replacement item before they returned the “defective?” item. However in the end the seller actually managed to win the dispute and got his money back from PayPal shows it can be done.
Here are 2 short PayPal horror stories that were posted in a ranting thread about another PayPal issue(s), its no surprise that when 1 person posts there story the other few 10000 do too.
I found this comment quite fitting, its a user from a Reddit thread, he describes the current state of eBay quite accurately :
The majority of people selling on eBay now seem to be dealing in wholesale of cheap merchandise being shipped out of China and Taiwan. The buyers are mostly just gambling addicts at this point, who rarely pay up but just like the thrill of “winning” an auction.
You can’t even give buyers negative feedback anymore, so the shitty ones have overrun the place.
A eBay/PayPal user falls victim to the good old power of the chargeback which PayPal will do nothing about and even chase you for money that was never there in the first place, I am sure theres some kind of fee added on that these days too? Shows the so called “seller protection” is worthless all going on a buyers word. This story involves a iPhone a common target.
Square Up from Square Inc – A payment processor who specialises in mobile payments on Iphone (IOS), Android and other smart phones. The will send you a mobile card reader for free which judging by the pic just plugs into the phone allowing you to swipe cards and take payments on the spot, perfect for trade shows/markets and the like. The fees seem low at 2.75% per swipe and nothing else on top and with next day deposits it seems good.
Bitpagos.co – A payment processor who specialises in BitCoin payments. A PayPal for bitcoins basically. Has support for mobile payments over mobile phones, I presume via some kind of app. The major advantage of bitcoin transactions is they cannot be charged back something which PayPal transactions can all the time.
I don’t quite understand what is going on with this users story its quite complex as most things involving PayPal, I am sure confusing a user is part of there game. Anyway this user sells software products online and due to his country’s banking laws (India) he must be paid out every day since its illegal to keep a balance in PayPal (a good idea!) except that for some bizarre reason PayPal run the funds thru a series of US$ to INR (and back?) which results in a very poor payout rate (but good for PayPal) for the user and even more issues. Story mirrored below.
A small story from a user/victim of PayPal selling a service only to have it charge backed against him some weeks later and PayPal tell him suddenly he owes them money… what is the point of there so called “seller protection” its not worth the pixels its printed on…
Absolute madness, buyer claims a violin is counterfeit, files a dispute with PayPal, PayPal tell the buyer to smash it up and ask for a photo of the destruction as proof due to some bizarre policy where they believe that posting counterfeit goods is against the law, yet no proof of weather or not a item is genuine or counterfeit is needed (3rd party/legal or otherwise). I can see a very good scam being run here if you was bored enough…
Quite recent 03/12/12. Story of a seller trying to sell off his old iPhone getting let down badly by PayPals seller protection program, with some really bad shortfalls in the policy being exposed such as “PayPal stating that I am in fact NOT ELIGIBLE for Seller Protection for this transaction because ”not as described” chargeback apparently is not covered by Seller Protection.” few other bits ripped out of PayPals terms are covered any how long story short the buyer was able to rip 3 sellers off for 3 phones because PayPal allowed it.
Here is a story about a buyer using feedback extortion threats to obtain all there money and a free item because well PayPal don’t give a crap and threatened to dump the sellers account unless she just gave the scammer what he wanted. Read the responses of the PayPal phone call quite sounds like a Mafia hit man.
A article from April 2012 detailing one guys sad and common “I got a empty box” via eBay case, amazingly the buyer had admitted receiving the item but still got his money back, due to PayPals “the buyer is always right”. Mirrored below also.
A mirror of the “Screw-PayPal” toolkit updated for 2012, its free any how over there but the more we mirror it the more people get it and they really do need it. We have also linked to where you can sign up for it, FREE!.