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NEW SCAM - HOW TO WIN EVERY EBAY AUCTION FOR FREE - No I'm not kidding

Contributor

NEW SCAM - HOW TO WIN EVERY EBAY AUCTION FOR FREE - No I'm not kidding

Some of you may have read about the SNAD-Chargeback scam that is plaguing the seller community.  Well, PayPal is doing nothing about it so I'm taking this opportunity to educate as many people I can about how to perform this scam so you can protect yourself (but you can't, you'll see why).


HERE'S HOW THE SCAM WORKS, find a buyer and win an auction, pay with your credit card via paypal.  When you get the merchandise initiate a SNAD (significantly not as described) paypal dispute and a chargeback through your CC company.  You may win or lose the paypal dispute, but it doesn't matter, the CC company will still process the chargeback and since you initiated the dispute as SNAD the seller is not covered by PayPal's "Seller Protection Policy."  Voila, now you've got the merchandise AND the money. 

 

 

You see folks, PAYPAL AND THE CC COMPANIES RELY UPON THE BUYER TO DETERMINE THE TYPE OF DISPUTE.  So sellers have zero chance of winning in the end because PayPal's Seller Protection Policy does not cover SNAD claims or chargebacks, and the BUYER gets to classify the dispute.  Essentially, THE BUYER GETS TO DETERMINE WHO PAYS FOR THE MERCHANDISE.

 

 

This happened to me. I sold a phone on ebay, buyer initiated a SNAD (significantly not as described) claim against me in paypal (he claimed that the phone was stolen by UPS and even sent photos of a damaged box without phone inside).  I won the Paypal dispute by providing 45 pages of emails, numerous photographs proving that the item was shipped as described through UPS and confirmed delivery to the a confirmed address.  But I lost the chargeback why?? Because the BUYER calls the shots in this game.   Even though paypal's web page states the following:


"Chargeback coverage with PayPal Dispute Resolution.
If you resolve a dispute through the Resolution Center, Paypal will protect you 100% against any future claim, chargeback or bank reversal the buyer may file for that transaction."

You can read this here: https://www.paypal.com/cgi-bin/webscr?cmd=xpt/Marketing/securitycenter/sell/ChargebackGuide3-outside

 

That looks like flat-out false advertising to me, and this whole double jeopardy system is clearly unethical.  So feel free to abuse the system all you want, Paypal doesn't care, ebay doesn't care, the CC companies...they sure as heck don't care. 

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26 REPLIES
Volunteer Advisor

Re: NEW SCAM - HOW TO WIN EVERY EBAY AUCTION FOR FREE - No I'm not kidding

If a seller wins a Paypal dispute and the buyer then files a chargeback, the seller is covered under paypal's Double Jeopardy" clause.

 

Sellers have won SNAD claims

Contributor

Re: NEW SCAM - HOW TO WIN EVERY EBAY AUCTION FOR FREE - No I'm not kidding

Sorry profdata, you're wrong.  Look into the following cases:

 

Paypal Dispute ID: #PP-885-530-094  (I won this case)

Chargeback Case ID: #PP-000-958-434-363 - OHV001 (I lost this chargeback)

Volunteer Advisor

Re: NEW SCAM - HOW TO WIN EVERY EBAY AUCTION FOR FREE - No I'm not kidding

I won the Paypal dispute by providing 45 pages of emails, numerous photographs proving that the item was shipped as described through UPS and confirmed delivery to the a confirmed address.

 

Your buyer filed the wron claim with Paypal. they filed a INR complaint.  SInce you had proof of delivery, you won.

 

Buyer then contacts their CC company and tells them he got an empty box and a SNAD complain is filed.

 

Did you file the insurance claim with UPS.

Contributor

Re: NEW SCAM - HOW TO WIN EVERY EBAY AUCTION FOR FREE - No I'm not kidding

Wrong again.

 

The first case was not an INR, it was a SNAD here's the content from my initial email:

 

Title: New Significantly Not as Described Dispute:  Case #PP-885-530-094
[redacted] has opened a dispute for the payment made on Jan 15, 2010
indicating that the item they received did not match the original
description.

 

Yes I filed a UPS claim, how is this not double jeopardy, it is for the exact same transaction?

Volunteer Advisor

Re: NEW SCAM - HOW TO WIN EVERY EBAY AUCTION FOR FREE - No I'm not kidding

Call Paypal it should have been covered since the 1st claim was SNAD

Contributor

Re: NEW SCAM - HOW TO WIN EVERY EBAY AUCTION FOR FREE - No I'm not kidding

I called them this morning, they told me that "SNADs aren't covered under Seller Protection"

 

This is a new scam.

Contributor

Re: NEW SCAM - HOW TO WIN EVERY EBAY AUCTION FOR FREE - No I'm not kidding

I just got off the phone with paypal support again.  Here's they're explanaition of the double jeopardy rule:

 

DJ only applies if the buyer had won the initial dispute (or I had refunded the payment) and tried to do a chargeback against me. 

 

I did however get the person I spoke with to admit that my buyer comitted fraud through paypal, and when i asked "so it looks as though paypal has created a situation that promotes credit card fraud"

 

his response - "yes sir, it does appear that way"

 

when I directed him to the page https://www.paypal.com/cgi-bin/webscr?cmd=xpt/Marketing/securitycenter/sell/ChargebackGuide3-outside where it clearly states:

 

Chargeback coverage with PayPal Dispute Resolution.

If you resolve a dispute through the Resolution Center, Paypal will protect you 100% against any future claim, chargeback or bank reversal the buyer may file for that transaction."

 

his response - "that looks pretty black and white to me, let me talk to my manager about this."

 

10 minutes later he says "my manager mentioned that he's taken the issue up with that wording several times..."

 

so, sorry again you are wrong, even paypal employees admit that they are promoting an enviornment that encourages credit card fraud, and then falsely advertise protections against it.

Volunteer Advisor

Re: NEW SCAM - HOW TO WIN EVERY EBAY AUCTION FOR FREE - No I'm not kidding

DJ only applies if the buyer had won the initial dispute (or I had refunded the payment) and tried to do a chargeback against me. 

 

Call then again, they are wrong.

 

DJ applies if you the seller won the 1st paypal claim the buyer filed with paypal.

 

After you won the Paypal claim the buyer then filed a chargeback with their credit card and their cc ruled in favor of them.

 

The head honcho of Paypal was asked about DJ years ago and he said it would be covered, as your's should have been

 

Call them again and speak with a supervisor.

 

How is it DJ if the buyer would have one the 1st claim, and then filed with their cc, paypal can oly take the funds from you ONCE. 

 

Call paypal again

Volunteer Advisor

Re: NEW SCAM - HOW TO WIN EVERY EBAY AUCTION FOR FREE - No I'm not kidding

E-mail AMANDA@PAYPAL she has helped others in the past