Loophole in Seller Protection
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I10.1.b Liability for Claims under PayPal Purchase Protection. If you are a Seller and PayPal makes a final decision that you lose a Claim filed directly with PayPal, you will be required to reimburse PayPal for your liability. Where you receive payment from a PayPal Account holder in another country and we determine under the PayPal Buyer Protection Policy of that country that the funds received should be returned or reversed, you will be subject to that country’s PayPal Purchase Protection Policy and required to reimburse PayPal for your liability (before receiving payment from a PayPal Account holder in another country, you should review the relevant PayPal Buyer Protection Policies accessible via the “Legal” or “Legal Agreements” footer on most PayPal site pages).
Your liability will include the full purchase price of the item plus the original shipping cost (and in some cases you may not receive the item back). You will not receive a refund of your PayPal fees. PayPal Seller protection may cover your liability—see Section 11 (Protection for Sellers) belowf a buyer files a Significantly Not as Described (SNAD) Claim for an item they purchased from you, you will generally be required to accept the item back and refund the buyer the full purchase price plus original shipping costs. You will not receive a refund of your PayPal fees. Further, if you lose a SNAD Claim because we, in our sole discretion, reasonably believe the item you sold is counterfeit, you will be required to provide a full refund to the buyer and you will not receive the item back (it will be destroyed). PayPal Seller protection will not cover your liability.
So I got this from my Paypal represenative today in the Paypal protection. A glaring loophole for customer who want to bypass restocking fee's or no item returns. And it does not matter if a buyer bought wrong or it buyer remorse you will be required to accept returns and be charge the shipping for it.
I bring this up because we have customer the purhcase a incorrect axle for a Go Kart on ebay. It is mention in the listing description to please count your splines before purchase due that this application has a split model year. We do not carry the axle that has 24 spline count on innger end. We even state that this axle has 18 spline count for inner end and the spefic model serial number. The customer open a ebay item does not fit case and we partially refund the customer with a 20% restocking fee. Due the item was in used condition and we could not sell it new anymore in addition to the shipping we lost on it and the packing material that was used. He opens a SNAD case on paypal and Paypal sides with him and refunds him the rest of this money plus shipping had to fight with represenative who finally credit us but the thing is these SNAD should not qualfly if the custoemr complaint is they want a full refund. And clearly from this protection Payapl does not care if it buyer remorse or what the condition is of the item is as long as you get the item back.
I have another SNAD with the same problem and have no idea what to do now since clearly paypal doesnt care what information you put in you be required to accept it. Has anyone else have this problem? And was there any information you provided in the case that help?
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When establishing your selling policies it is important to make sure they work with PayPal protection policies; you can't make your policies more stringent than PayPal's.
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So basically we should let Paypal determine how to run our bussiness? If you dont accept returns or if a item comes back in in not sellable/used condition Paypal should consider that. Not just let the buyer do what it want with a item then just send back when they just didnt need it anymore.
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When you sign up for PayPal you agree to their terms and their policies; just make sure your selling polcies is in line with what your agreed on PayPal. If you don't agree with PayPal policies, then cancel and sell through another service.

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