Use PayPal to buy things without paying #scam #fraud

[sc24452]

My recent dispute case with PayPal was such a disappointment to learn that PayPal is an UNFAIR payment service provider which failed to perform Seller Protection in transactions. I have lost my merchandise and the payment was returned to buyer.

When you understand the loophole in their system, you will learn how scammers can buy things they want using PayPal without actually paying.

My company uses PayPal to receive payment and has trusted it as a mutual, safe, and reliable service to run business with, up until this time.

We received payment from buyer, shipped the goods via EMS service and was delivered and signed. Then the buyer filed a claim with PayPal stating the goods was damaged and was not as described. We tried to contact the buyer but he never responded. Seller claimed to send back the merchandise for refund providing shipping label to PayPal, then the shipment is delivered and signed shown on tracking system, so PayPal refunded his payment.

All seems legit, right?

Except the fact that the address on return shipping label was not my address!

Seller deceived PayPal with a fake shipping label sending to my address but it was actually sending to a kindergarten school nearby, so the school mailroom staff has signed to receive the package without knowing whose package it was. And so PayPal refunded the buyer without any confirmation from me.

If you understand this loophole then you’d understand that this is a fraud.

You’d suspected few things:

• Why don’t you ask the mail service to send the package back to you?

I can’t. The information shown on shipping label is not mine, I have no right to ask the mail service to revert the package to me.

I asked PayPal to show the return shipping label was noting to me, but PayPal refused to provide proof.  

• Why don’t you go get the package back and take picture to show PayPal the address is wrong?

I did, and I also took picture of the shipping label to show PayPal. PayPal denied my appeal because the package was signed and the money was refunded already.

• Report to the Police! Let the authority take care of it?

I did. But this loophole still exists in PayPal system, PayPal has failed to form a checking gate in protecting the seller.  PayPal refunded the buyer without any confirmation of the correct item returned to seller.

• How do you have the pictures if you didn’t get the package back?

Because I never thought of being scammed, I simply thought it was sent to wrong address. Until I brought all related documents to the school to prove the unclaimed package was mine, the school staff confirmed the same tracking number so they released it.

It turns out that the returned package was a toy instead of the machines that we sold at the first place!

I have reported this fraud to the police, but I still think this story should be shared in the PayPal community so whether you are a buyer or seller, you can make a better decision to use PayPal or NOT knowing that this loophole exists.

PayPal should seek confirmation from the seller in a refund situation to confirm the merchandise was returned properly before they make refund but they don’t.

PayPal has a poor return mechanism and fail to protect the seller in a fraud situation.

At the end, we have lost our merchandise and lost our money from selling through PayPal.

Think twice before making sales and receiving payments with PayPal. 

return items are not what i soldmy selling package label

[lisenorth]

I had the same thing. Now im stopping my business with paypal. Its a real hassle when the seller get scammed and always loses to a fraud claim.

[jhk1735]

I had an exactly same situation happened to me. I have became a victim of a fraud due to a loophole created by Paypal. I can't describe how disgusted I am with Paypal and its infamous seller's protection. Shame on you all!

Here is my story: I sold 20 pc of makeup on Ebay. I have 100% positive feedback. Two months after the transaction was completed, the seller opened a case "item severely not as described", falsely stating that she received only 2 out of 20. The buyer had no prior contact to me and never replied to any messages. Eventually she returned only 2 items out of 20. I have called Paypal customer service multiple times, it didn't help at all and they closed the case in buyer's favor, providing a full refund without any investigation. As of now I lost $259 in addition to the cost of 18 items. It is nearly $500!

I have checked the weight of the package while sending it to the buyer - it was 24 ounces. When the buyer returned the package, it was only 2 ounces! How fun is that??

Tried to appeal, just received an email that I will not be granted with a refund.

Here are the documents which I submitted to Paypal:

notarized affidavit, police report, a copy of an article in a local newspaper describing my case, USPS intranet tracking confirmation with the weight indication, a photo of each individual item. I don't know what I missed, but please let me know if you had a successful result fighting fraud on Paypal. I hope something can still be done at this point, it is a lot of money for me!