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"PAYPAL SELLER PROTECTION" IS FALSE ADVERTISEMENT.

Frequent Advisor

Re: "PAYPAL SELLER PROTECTION" IS FALSE ADVERTISEMENT.

Contributor

Re: "PAYPAL SELLER PROTECTION" IS FALSE ADVERTISEMENT.

Thank you for the link, I am looking into it and will call them the third time with this information. Thanks

Re: "PAYPAL SELLER PROTECTION" IS FALSE ADVERTISEMENT.

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. 

Advisor

Re: "PAYPAL SELLER PROTECTION" IS FALSE ADVERTISEMENT.

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!
Contributor

Re: "PAYPAL SELLER PROTECTION" IS FALSE ADVERTISEMENT.

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. 

New Community Member

Re: "PAYPAL SELLER PROTECTION" IS FALSE ADVERTISEMENT.

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.

Tags (2)
Advisor

Re: "PAYPAL SELLER PROTECTION" IS FALSE ADVERTISEMENT.

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!
Member

Re: "PAYPAL SELLER PROTECTION" IS FALSE ADVERTISEMENT.

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?

 

 

New Community Member

Re: "PAYPAL SELLER PROTECTION" IS FALSE ADVERTISEMENT.

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. 

Highlighted
Advisor

Re: "PAYPAL SELLER PROTECTION" IS FALSE ADVERTISEMENT.

Selling digital goods and/or services is indeed a real problem with stuff like this. Unfortunately, it's not just PayPal. All of the payment processors act very similarly.

If you can't prove delivery with tracking from a shipping carrier then they basically consider it a non-delivered order, and they will side with the buyer nearly every single time.

I've seen this with PayPal, Stripe, Square, PayLeap, Group ISO, Authorize.net, and more.

I have seen where somebody wins a case like this, but there wasn't any rhyme or reason as to why.

One thing you could try is having your buyers sign an agreement prior to beginning the work. Then you would least have a contractual agreement that you could sue based on if necessary.

Not ideal, which is why some buyers take advantage of it.

I've been thinking about a blockchain delivery system for digital goods / services that would prove the buyer received what they paid for, but this would take massive cooperation from major corporations like banks and credit card processors. Not something I'm able to take on within my small company.

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