Fraudulent safety

[Ltyler]

Does pay pal do any fraud checks during transactions? Is it possible a customer can swipe their card on the pay pal card reader and then withdraw the transaction after leaving the store?

[sharpiemarker]

@Ltyler 

Yes, customer can on occasion file dispute but this should be rare if you have have good security measures. Point of Sale transactions are not covered under seller protection though because you're suppose to check photo ID and perform other security measures.

See this about point of sale security:

https://www.paypal.com/us/brc/article/point-of-sale-security

Seller protection terms:

https://www.paypal.com/us/webapps/mpp/security/seller-protection

Info on disputes/chargebacks:

https://www.paypal.com/us/brc/article/customer-disputes-claims-chargebacks-bank-reversals

Merchant due diligence and paypal's tools work as one. It is not all just PayPal doing the fraud checks. PayPal can't check the customer ID in person to see if it matches card you swipe.