Amanda,
If you're out to protect the interests of Paypal and their so-called "seller protection", I wouldn't be looking at whether someone has or doesn't have the funds in their account to cover it since you ALWAYS side with the buyer.
Here's a story for you and all of the Paypal community. And when I tell you I'm SUING PAYPAL, I mean it.
In December, I sold an original hand-signed Norman Rockwell lithograph, professionally framed and matted, complete with certificate of authenticity with an additional $90 to have the item professionally packaged and shipped to insure the integrity of that item.
An art gallery in Philadelphia was the only bidder for the item, and it sold for $500 (it's worth $1500!).
After not receiving payment for several days, the buyer finally emailed me with the mesage "I don't want any glass or frame and I want it shipped the cheapest way possible. $90 for shipping is cutting too far into my profits".
I responded to the buyer that since there were no other bidders, I will allow this and get back to him in the next day or so with other options, and then advised him that this is a request he should make before bidding on an item, NOT a demand one makes after winning the item.
I gave him the first option. For $35 I can double pack it in a mail roller. He refused, saying he wanted it shipped flat.
Shipping an item flat is risky, but given the type of item, I once again allowed it.
I told him I'd pack the item in hard-grade cardboard and then pack that inside a flat box. $28. He agreed, paid for the item, and I shipped is EXACTLY as I said I would. As always, I insured it with the USPS for the entire $500.
On Dec. 30th, the buyer sends me an email "the package arrived damaged. Worst packing job I've ever seen, and I want my money back".
In spite of his rudeness, I apologized that it didn't arrive in perfect condition, but then reminded him that this is how he WANTED it shipped, and had he followed Ebay's rules, this likely would not have happened. In spite of this, he could recover his losses by simply filing a claim with USPS.
Instead of filing the claim, he files it against ME with Paypal.
Paypal places the funds from the transaction on hold, sending my account $525.99 overdrafted. The repurcussions of them doing this? THREE vendors I needed to pay $1800 to never got their money because this process took so long. Paypal instantly red flagged my account, so the ONLY way I could replenish funds was through a bank transfer (no instant funds through debit card or credit card allowed!), and money from FIVE things that have sold while waiting for the bank transfer (which took 22 days!!!!!!!) have all been held in my account until I can prove shipment. The problem with that?!?!? I ship all my items using Paypal's discounted rates. If I can't use my Paypal account to ship the item, it costs almost double. Paypal's policies are **bleep**ing up EVERYTHING!!!!
But, back to the buyer dispute.
The buyer filed a claim "significantly not as described" instead of reporting that it was damaged. The buyer NEVER provided any evidence that the item was damaged, in spite of my requests. I began to sense foul play. I sensed that since he is a gallery owner, he'd keep the original and send me back a fake, or some other strange shady plan.
I received the item back just a few days ago. The packaging IS NOT damaged in any way, but the lithograph IS damaged beyond repair. It's no longer worth a penny! Additionally, the certificate of authenticity is MISSING (probably the most valuable part of this deal, since he can attach it to any copy and sell it for $1500!!!!)
I spent HOURS on the phone with Paypal PLEADING with them to review this case carefully, as I sensed this person was doing something VERY shady here.
I was assured they'd look into every aspect of the case. I provided them with photos of the item before it left my house, and the string of emails between me and the buyer where he asked for the glass and frame to be removed, and refusing to pay for the full shipping.
In spite of all of this, they rewarded the BUYER with the full refund!!!!!
So now, the buyer has MY money, a certificate of authenticity worth $1500, he'll file a claim with USPS and get $500 from them, and on top of it, he'll sell a copy of the lithograph with the certificate of authenticity for $1500!!!! AND PAYPAL ALLOWED THIS TO HAPPEN!!!!!!!!!!!
Of course, I was sent an email informing me of this decision by Paypal informing me of my right to appeal their decision. I filed it yesterday, explainging everything I just described.
Today, they turned down my appeal, saying that "any item reported significantly not as described is automatically rewarded in their favor and can not be appealed".
You KNOW Paypal did nothing but look at the type of complaint this was, because they CLEARLY didn't put any effort at all into this case.
Seller protection MY **bleep**!!!
But, this now draws down to legal action against Paypal and it doesn't even need to be civil suit. Paypal aided and abbetted the destruction and theft of a work of fine art. Since the packaging arrived at my door completely undamaged, I can't even recover my losses by filing a claim against USPS. This ENTIRE loss I am experiencing is because of PAYPAL. IT IS VERY CLEAR!
So Amanda, take this message to your higher-ups, because nobody's listening to me. You guys will recover my losses, regardless of whether you have to spend thousands to protect your assets. You allowed this to happen and you did NOTHING to protect ME, the guy who pays all the fees for the transaction.
SHAME ON PAYPAL!!!!!!
