How PayPal aids and abets fraud

[robbietunes]

PayPal's instructions say to print a shipping label via PayPal.

On international shipments, there can be no tracking or delivery confirmation.

You offer the item, someone buys it.  PayPal takes their money, then holds it.

During this time, PayPal is earning interest on your money

In order to get PayPal to release the money, you are told, by PayPal, to print an online shipping label.

Their own rules say they'll reimburse you the shipping within 24 hours.  OK, you've spent the money.

The package is dropped at the post office.  There is no tracking number, just a Customs number.

It will not show as en route.  It will not show as ANYTHING.  PayPal will continue to hold your money.

It will not show as delivered.  The buyer can say he/she didn't get it.  PayPal has no way of knowing.

PayPal will refund your money.  The buyer keeps the item.  You are out the item and shipping.

PayPal still takes it's fees.   PayPal will not help you on this.  Fraud, aided and abetted by PayPal and eBay.

[fenderacoustic]

I have a feeling this just happened to me. Sold an iphone to the UK I took his money, sent the package, now he filed a dispute, won and Paypal took my money. Do I have any hope of getting my money back? I sold the phone so I could buy Christmas presents. Please tell me you had success in this?

[robbietunes]

Well, your first mistake was trusting PayPal.   If there is a dispute, the buyer is supposed to mail the item back.  Per eBay, they will not refund the money to the buyer unless the buyer ships the item back.   Of course, that was per eBay, which likes to say "it's PayPal's action" while PayPal says "it's eBay's action."

In any case, you should have the item returned.  PayPal will aid and abet the fraudulent buyer nearly every single time.  I'd escalate the dispute until you get the item back.

[PayPal_Olivia]

Hi robbietunes,

One best practice employed by many sellers who ship internationally is to use couriers like FedEx, UPS, DHL, or other services which provide international handling of a package on both the sending and receiving side of the shipment. Some sellers determine that the cost of using a more expensive method of delivery is too prohibitive. The requirement for Seller Protection is to show proof of delivery (with signature if over $250), and using one of these methods affords that ability.

I used to sell bumper stickers and magnets. They fit perfectly into legal sized envelopes, and shipping them was considerably cheaper that way than it would have been in packaging that allowed for delivery confirmation, even when only dealing with domestic orders. I had to take into account a margin of potential for claims of non-receipt, and be prepared to pay out on such claims, no questions asked. That was the cost that came with the benefit of selecting cheaper shipping that would not provide me with the protection of proof of delivery. For very low cost items like bumper stickers, this is a reasonable business model. The risk of claims is low. For higher priced items, it is not necessarily a good business model since the risk of claims is higher. Each seller has to evaluate the risk versus the reward in this kind of decision, based on his or her unique circumstances.

I hope this information helps!

Olivia

[robbietunes]

You know, I couldn't care less about your business of selling bumper stickers.   I don't sell bumper stickers.

1-PayPal prints on its own site that if you print a PayPal shipping label, the shipping portion of the held funds will be reimbursed back to the seller when shipped.  That is a boldfaced lie.  I did it, and PayPal didn't.

2-PayPal then says when the item is delivered and the buyer provides positive feedback, funds will be released.  That is a boldfaced lie.  That happened and PayPal didn't.

3-PayPal also gives you a little date at the bottom right of your transaction letting you know when the funds will be released.  Hmm, again, a boldfaced lie.  That date has come and PayPal hasn't released the funds.  Of course, the link to that transaction won't open anything.

4-You mention signature confirmation of delivery.   The shipping on an item to Taiwan was $72.88, $15.00 more than PayPal's label said it would be, with accurate measurements and weight.    To get Seller Protection, you'd have to have signature confirmation.  Signature confirmation of the same package would have required $250 in registered mail postage, for a $386 item. 

5-It's clear to me that PayPal is dishonest, as is eBay, their partner in crime.  Hopefully, anti-trust litigation will eventually catch up with them and thousands will be out of a job, mainly because of dishonesty.

[PayPal_Olivia]

Hello robbietunes,

If the funds for your label were not released within 24-48 hours of the printing of your label through PayPal or eBay shipping, there may be a technical issue. If you give PayPal Customer Solutions a call, they can investigate it and open a ticket to the engineers if necessary. Funds for the remainder of the transaction will be released 3 full days after your online tracking shows delivery to the address in the transaction details. If there is no buyer complaint and the funds are not made available within 24 hours after the time that the criteria are met, there may be a technical problem. Again, Customer Solutions would be needed to evaluate the situation.

I'm sorry to hear that you've had a poor experience. We value your business and want to see it thrive. I'm confident that  representative will be able to help iron out the details if there is a technical issue with the release of your funds!

I hope this helps!

Olivia