"PAYPAL SELLER PROTECTION" IS FALSE ADVERTISEMENT.

vaderlock
Contributor
Contributor

 "You're covered"  "Merchant fraud prevention"  "an added layer of protection"  "Our encryption helps keep your online transactions heavily guarded"

 

Everything you see quoted up there is directly from PayPal's website and is a complete and utter lie. I have been using PayPal since last year. Mostly use PayPal for buying and selling clothes and shoes on Grailed. I actually have an amazing feedback of 5/5 on this website. On November 22nd of 2017, the PayPal user "Concepcion <removed>" purchased an item from my shop for $329. This said item was received by the user on December 1st of 2017 at the PayPal verified address that was provided on my end. Everything went well and the user also gave me 5/5 feedback for the transaction on the website. Fast forward to December 15th, I receive an email from PayPal saying that there was $329 pulled from my PayPal account and that the user of this transaction had filed a claim of  "unauthorized payment" with their financial institution a.k.a. their bank. I of course immediately called PayPal the next day thinking it was a mistake done on someones end but no...in reality, PayPal just let a scammer easily dip into my money and take the money and safely escape. This is what I mean when I say "false advertisement." I patiently waited for the past month or so, called PayPal customer service multiple times asking if there were any updates on this case, even though every time I called they gave me new information that was not given by the previous customer service representative, I had let that slide too since they all had me assured that I will be winning this case no doubt and will get my money back and to stay put and not worry. I believed that, I honestly fell for that. I have all sorts of proof that will show that I deserve the money that was taken and they had no authority to do any of this, I have everything down to the receipt that was given to my by USPS for shipping the item. Not surprisingly, I received an email an hour ago by PayPal letting me know that they are useless and they can do nothing at all and will let this scammer take my money and be free. The scammer's financial institution sided with them and I am here left with neither my $300(they refunded me the $29 in one of the previous calls since it was a dispute fee and the representative believed I was gonna win this case anyway so he just sent me the $29) or my item. For some odd reason they have no control over the money that was in my PayPal account, I do not believe that. PayPal will most likely delete this post since I am calling them out, or maybe just sit aside and do nothing since they are so good at that. I am honestly disgusted by all of this and will not be using PayPal until this is resolved. 

P.S. if anyone lives in the Kerman, California area, let me know so we can find this scammer and get my $300. 

 

Login to Me Too
27 REPLIES 27

vaderlock
Contributor
Contributor
Thank you for the link, I am looking into it and will call them the third time with this information. Thanks
Login to Me Too

krunchymoses
Member
Member

This also happened to me. I sold something on ebay, the buyer had low feedback but the money was there in my account so I sent the Cd key for the game. Now PayPal have sided with the scammer and I now know (too late) that seller protection is a joke. They also hit me with a $15 chargeback fee! 

 

PayPal have got too big and now they do not offer the seller protection they promise. Going to look at regulatory bodies to see if they need to stop advertising their seller protection. 

Login to Me Too

angelleye
Advisor
Advisor

Sorry to hear you're having issues, but it's actually pretty clear in PayPal's Seller Protection details that digital goods are not covered.  So you sold something that isn't covered to a buyer that did not have much positive history.  I would chalk it up to a learning experience.  You would have the same issue with any other payment processor, too.

 

 

Angell EYE - www.angelleye.com
PayPal Partner and Certified Developer - Kudos are Greatly Appreciated!
Login to Me Too

eddievegas
Contributor
Contributor
PayPal is a well oiled total rip off. I been with them over 20 years. I paid over 500k in fees from my buying and selling. The cash back PP business debit card is nothing anymore. I remember PayPal had adults working for them. Now they have stay at home high turnover people. That gang up on you. They are controlling the web. In what you read. They do make it sound like they are good. But they are evil. They room away everything I had and earned. From being a perfect seller. I help build Pay Pal up.
Login to Me Too

myscentsei
Contributor
Contributor

I am a victim of PayPal's false advertising of seller protection. 

 

I shipped products signature confirmation, provided proof buyer changing accusation/story 3 times, proof of receipt of the products when I purchased them from reputable dealers and even video footage of packing and shipping that was filmed due to the price level of this transaction as a precautionary measure. All details of proof match the pictures in listing and description provided in listing. Serial #'s and all. In the end, it doesn't even matter. The buyer threaten to get the FBI two week ago(sent that screen shot to paypal). I am still waiting.... All that is left is civil suit. For me to spend even more money.

 

In the end no form of evidence/proof matters. SELLERS BEWARE! I lost $5,720 thanks to PayPal false advertisement. Buyer has the money now (instant reversal) and my property. 

 

True colors has shine through. 

Login to Me Too

private-Seller
Contributor
Contributor

You know, this makes me question why PayPal charge the high fees that they charge. If we can’t get protection, then what good is the service? Apart from able to accept card payment easier. But I can do that on the revolut app for free. People can also send me money to my bank for free. I think it is time we all start accepting crypto payments. Then no reverse charges, and they have to deal with you directly if they have a problem. It will resolve the scammers buying goods. But not selling goods.

Login to Me Too

angelleye
Advisor
Advisor
Don't let teaser rates fool you. PayPal's fees are much cheaper than other payment processors when you factor in the discount rate, transaction fee, statement fees, PCI compliance fees, etc.

What good is the service? A one stop shop for PayPal, credit cards, Apple/Android payments easily integrated into websites, mobile apps, games, or whatever it is you're doing.

If somebody sends you a check you're going to wait a few days to be able to use the money. There is opportunity cost here while you wait on your money.
PayPal is instant. If they do an ACH deposit then there will be a fee. If you're taking credit cards through any other service there will be fees, too, and usually avg. the same or higher than PayPal unless you happen to be taking a lot of point-of-sale transactions with personal Visa debit cards.

Crypto is great, but we're still a long ways for using it as actual currency in my opinion. It's just too volatile. Sure, pay a 2.9% fee with PayPal, but take a payment with Crypto and you could lose 20% in 10 min.

You really need to consider all factors when thinking about these things.
Angell EYE - www.angelleye.com
PayPal Partner and Certified Developer - Kudos are Greatly Appreciated!
Login to Me Too

no_stile
Contributor
Contributor

It seems that I have become an addition to this list of victims however, my situation is a bit different. 

 

On July 21 2018 a customer purchased goods from my website and it was delivered on July 23rd 2018. 

 

In November, the cardholder filed a dispute with their bank for the charges. Immediately, we contacted the customer and was then advised that

 

1. The card did not belong to him, but he did have permission to use it 

2. The card holder and himself had a dispute which resulted in the card holder filing chargeback claims on transactions relating to him

 

Due to our location, we do deliveries ourselves and collect signatory proof on delivery - tracking is not available. I explained this to the PayPal representative when the dispute was first opened and they acknowledged that this was ok.

 

Not only do we have signature proof, the customer is also confirming that they received the items

 

As a seller, should I be responsible for a dispute between the customer and the cardholder? Should I now have to go through an entire legal process with the customer since they are claiming that they do not have the funds to pay for the goods?

 

From my experience, when a card is added to a PayPal account, the account needs to be verified by uploading a credit card statement and Photo ID before any purchases can be made. What is the purpose of this if I am being held responsible for a chargeback?

 

Where exactly is the Seller Protection? 

 

If I have the customer confirming that the goods were received, then why not apply the chargeback to their account?

 

 

Login to Me Too

Dzynation
New Community Member

Same here. And it's even highly likely in case of digital goods.
I worked for 2 weeks on buyers request. Buyer paid 30% , I sent a partial file to review and check. Then I asked for full payment to send the full file.

Then buyer demanded that file be sent first. I refused to agree and she filed a dispute and PayPal refunded the amount immediately without checking this carefully.

I got a response that files were never delivered. Inspite of showing all proofs like mail screenshots and FB chats PayPal did nothing.

So buyer has now 70% of my 3D printable file. He can easily hire another designer and pay him 30% price and get it done. 

My 2 weeks work,my honesty, my efforts nothing matters to PayPal as it's only interested in projecting an image before buyers.

This discouraged me from using this platform and I am also planing to quit. 

Login to Me Too

Haven't Found your Answer?

It happens. Hit the "Login to Ask the community" button to create a question for the PayPal community.