Seller Protection: Promise protection now, ask questions later

[mcoughlin87]

Hey everyone. This isn't so much a question as it is a public service announcement regarding Paypal's Seller Protection. If you are counting on this protection to ensure payment for your transactions, you might want make sure you read all the fine print of their policy.

Back in January 2019 I was trying to sell Baltimore Ravens NFL Playoff tickets for a game I couldn't attend. I found a buyer, received payment via Paypal, and subsequently sent the tickets via Ticketmaster (authorized method of NFL ticket exchange) to the same e-mail address as the Paypal account that sent payment.

A week after the game, the buyer filed with his credit card that he didn't authorize the payment. And subsequently Paypal withdrew the payment on my account, placing it into a negative balance. I was shocked, being as while I was completing the transaction, Paypal clearly stated this transaction was covered by "Seller Protection" which covers Unauthorized Transactions. See screenshot below:

After Paypal reviewed this case, they stated this wasn't a covered transaction, and they would not reimburse me for this transaction.

You'll notice there is no fine print next to the work eligible. No "Eligible ¹" and a later footnote stating "¹: Terms and conditions may apply" Or an even a prompt stating "Click here to determine Seller Protection Eligibility

None of those footnotes are there, but it clearly and unequivocally states this purchase is eligible for seller protection. Being as this is Paypal's own policy, I assume they know what is eligible and what isn't eligible.

I wholeheartedly agree that not all transactions can be ensured by Paypal. But I made no secret what I was selling, the transaction clearly states these are tickets delivered via Ticketmaster. And right next to that it states Seller Protection as "eligible." When I see an unconditional "Eligible" posted on the transaction page, I assume Paypal has done their due diligence to ensure the prerequisite qualifications have been met. This is downright false advertising, and I promise you the only reason I sent these tickets to the buyer was because of this unconditional "Eligible" posted on the transaction page.

Since this transaction, I've received multiple e-mails threatening to send my account to collections. I was assured on one of my first phone calls that this case would get resolved in my favor. The Paypal representative I spoke with stated that it 100% was the owner of the account that made this transaction, and that is the reason he filed the claim with his credit card company and not Paypal directly. Of course this didn't end up going in my favor, and furthermore when I follow up to ask about this case I've received no response from Paypal.

Seller beware, Paypal seems eager to say you are covered for services they have no intention of covering you for. That's the fact, and based on how they resolved this case, seems like its their company policy to handle this situation this way.

So I just wanted to post this so other sellers are well aware of Paypal's company policy. Lastly, here's a screenshot of the case being closed:

If Paypal needs to ask more questions regarding a transaction, it should do so before confirming whether a transaction is eligible or not. But once you get to the confirmation page, if they state a transaction is covered, they should honor their commitment to sellers.

- Mike

[sharpiemarker]

@mcoughlin87 

Click the word "Eligible" under "Seller Protection"....and boom....you get this:

https://www.paypal.com/webapps/mpp/security/seller-protection

Why would you assume a company in this day and age would do their "due diligence" for you? It's every man for themself more like. We are our own last line of defense. With the internet, the information is at our fingertips.

PayPal never claimed pp protection is a guarantee, warranty, or insurance and has it's limitations.

[mcoughlin87]

@sharpiemarker 

You're telling me it would be that hard to Paypal to have a prompt asking what exactly your sending before claiming "eligible", "ineligible", or "needs more information"

Unauthorized transactions are one of the two things Seller Protection claims to protect

It doesn't seem odd that they don't ask one question about the transaction before stating it qualifies for seller protection? They are falsely claiming that you are covered, when in reality they have no clue if you are or not. That's absolutely false representation of their product.

One more note regarding this transaction: The Paypal rep I spoke with was certain this Paypal user was the one who authorized the transaction. But I can't even get a response from Paypal if they've taken any measures to collect payment from him through any other means. Either that Paypal customer service rep told me wrong information, or Paypal doesn't even try and help a seller collect a payment through another payment method. Its either one or the other

[mcoughlin87]

@sharpiemarker This is a legitimate question, according to this transaction receipt this transaction met their criteria, hence stating it is "Eligible"

If they failed to ask enough questions before stating this transaction is eligible, that is an omission on Paypal's behalf. Imagine having car insurance company saying you have current coverage, and finding out when you get into an accident that you're not actually covered. That would seem like a bold business move, don't you think?