Bank Reversals long after item delivered

[BulaBula]

I am a seller with a website and I offer PayPal in addition to a standard merchant accout. Recently I have had three instances where I received notice that a payment received was returned by Paypal stating "Bank Reversal", well after the order had been shipped.

The first two times it was Paypal assuming the payment was fraudulent, this time I'm guessing it is the same thing, but now all I can do is wait and hope the customer has integrity and will respond.

What is up with Paypal doing this and we, the seller, have absolutely no recourse after the fact? I stand to be out $375 if this customer doesn't come through. The other two did, but it was for much smaller amounts.

[BigKahuna97]

Bula,

I too have witness exactly what you describe and the only advice I can give you is to look to other payment processors.  I know you have a merchant account but there are several other PP alternatives who have not reversed payments on me weeks after the fact.  I lost several hundred dollars through the same situation(s) you are describing with absolutely zero recourse apart from civil litigation against the buyer.

On another note, if you shipped the item with the USPS to a different state and the buyer was responsible for the bank reversal, he/she could have committed interstate mail fraud which carries pretty stiff penalties.  If this applies I would write the buyer one last time asking he/she to send payment again before you file a complaint with the U.S. postal inspector.  These guys don't play around (or play nice for that fact) and will often scare the buyer into doing the right thing.

[liuchess]

If you are tired of having payments you receive reversed, then please read this.

https://www.paypal-community.com/t5/Disputes-and-claims/Paypal-Authorized-Payment-Protection-PAPP-Pr...