Sold Digital Codes via eBay customer declared unauthorized purchase..

marvelmc93
Contributor
Contributor

I had recently purchased numerous digital codes in person with the intent of reselling them via eBay and had done so sucesfully. About a week ago I received an email from Paypal stating the person I sold the digital codes to did not authorize the payment and that it was on hold. That said I had already emailed out the digital codes to the person via regular email & eBay's messaging the system.

 

I fill out the dispute section in Paypal's 'resolve problem' section, screenshot of all the emails I sent the person with actual codes. I get an email today stating that their has been a reversal of payment.

 

That said I also sold five additional digital codes to one person and the same exact problem. All disputed that they did not authorize the charge. And I filled out the same "resolve problem' with screen shots and proof that I emailed all the codes out WITH times stamps via eBay's system.

 

Most likely to my understanding those people's Paypal/eBay were probably comprimised but I had no knowledge of that when I sold them/emailed the digital codes. Does Paypal/eBay not protect me in those aspects? It seems they have already ruled against me for one of the codes but I have five additional cases pending.

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4 REPLIES 4

kernowlass
Esteemed Advisor
Esteemed Advisor

You really need to read up on seller protection before you start selling, you would then see that there is no seller protection if you sell digital / virtual items.

 

You can of course sell that type of item but entirely at your own risk.


Advice is voluntary.
Kudos / Solution appreciated.
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marvelmc93
Contributor
Contributor

These were for 12 month Xbox Live Gold codes. I didn't think it'd be necessary to ship out a piece of paper if I could just scratch off the number and email to the customers in a fraction of the time. That said I STILL have the physical copies of those codes on hand is their anything I can do to prove that it was legitamately? I've been an eBay member for over 6 year perfect rating and everything..Getting ripped off on $300 is not a great feeling at all.

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sharpiemarker
Esteemed Advisor
Esteemed Advisor

It's no use because PayPal Protection do not cover digital goods, only physical goods.  Is there a reason you didn't send the physical copies of the code?  Expensive shipping/overseas buyer?  If they're local, sending first class parcel with delivery conf is probably not even a few bucks...

 

This is the second instance in the last 2 hours of surfing forums where this has happened multiple times to an individual seller.  It seems like these are good targets for unauthorized scams so I do not recommends selling these types of goods on eBay with PayPal as payment method.  Find a marketplace that will provide protections for digital goods and/or sign up for Stripe (stripe.com) as payment method.


Kudos & Solved are greatly appreciated. 🙂
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marvelmc93
Contributor
Contributor

@sharpiemarker wrote:

It's no use because PayPal Protection do not cover digital goods, only physical goods.  Is there a reason you didn't send the physical copies of the code?  Expensive shipping/overseas buyer?  If they're local, sending first class parcel with delivery conf is probably not even a few bucks...

 

This is the second instance in the last 2 hours of surfing forums where this has happened multiple times to an individual seller.  It seems like these are good targets for unauthorized scams so I do not recommends selling these types of goods on eBay with PayPal as payment method.  Find a marketplace that will provide protections for digital goods and/or sign up for Stripe (stripe.com) as payment method.


It seemed like a much quicker and easier method for the buyers then waiting 2-4 days for a code to arrive if they needed it for immediate usage online for their Xbox system. All these sales were to VERIFIED Paypal accounts/emails/home address also. Isn't that the point of verifying people's information through Paypal so scams don't happen?

 

Also multiple people (top rated sellers) sell the same exact codes online via eBay so I didn't think I get scammed out like that. I've never had an issue selling/or being ripped off via eBay like this.

 

Edit: Regardless whether or not Paypal covers digital sales isn't that a liability issue if someone compromises their system to fradulent make purchases? That item could have easily been shipped out (with tracking code) and the person could easily lie and states that either they didn't receive it (delivered to wrong house) or they didn't make the purchase

 

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