Possible scaming

[Spowell1]

I heard that people can put money into your PayPal account and then at any later time, call PayPal and say "I did not authorize that transaction" and PayPal will take the money out of your account leaving you with a negative balance. I'm selling something on eBay and they could buy my product then call PayPal and say they didn't authorize it. So they would then get my product plus their money back. Leaving me with a negative balance. Is this true? Or does PayPal have something to deal with this type of scam?

[angelleye · Accepted solution]

When you sell something you'll get the payment details in PayPal and these details will include information about "Seller Protection Eligibility". Make sure the transaction is eligible, and then make sure to ship the product to the exact address provided on this transaction detail screen. If it's an expensive item make sure to include signature required as well.

If the buyer then claims they did not authorize the transaction you would be able to show that you shipped to the protected address, so in the very least the buyer should have to provide evidence of return shipping before they would get their money back.

[sharpiemarker]

PayPal would investigate to see if there was a security breach of the other account to verify the buyer’s claim. Note that everytime there is a claim against your account, PayPal deducts the amount in question pending investigation so make sure you keep that amount in there.