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Not looking for any PayPal associates to give a reply, this is more of a rant or complaint.

Temp20201216ag
Contributor

Not looking for any PayPal associates to give a reply, this is more of a rant or complaint.

I am a automotive parts and service supplier and Iv'e been a PayPal business customer for 10+ years. I use PayPal invoicing for most transactions with my customers because its easy, I can allow partial payments in cases where I require the customer to pay for parts upfront and I get access to the funds instantly. After their job is complete I collect the balance thru the same invoice if the customer hasn't already just paid the invoice in full from the onset, usually the case. 

 

As I understand, a lot of electric payment fraud has been reduced with products like PayPal Invoicing. PayPal Invoicing requires me to create a detailed or itemized list of the parts and services I provided and then send the invoice directly to my customers email address which is also typically on file with PayPal and usually also if the prior is the case, will display the customers verified address which can determine right up front if the transaction is eligible for PayPal Seller Protection. PayPal Seller Protection covers you for some transactions if you customers files a dispute thru PayPal. It also covers the full transaction if your customer files a chargeback thru their financial institute. That is unless you are me. Paypal's policy's and their Seller Protection are only valid for transactions that occur when the seller sends goods to a verified paypal address listed on the buyers paypal account. So, no in person, card present, chip card or not, transactions are eligible for seller protection because the goods have to be sent to a verified address, you must supply shipping and tracking information and in cases were the transaction amount exceeds a certain dollar amount you must also obtain thru the shipping company, a signature from the person listed on the verified addressed PayPal registered and verified account holder only, and a picture of that person holding their state issued ID standing next to the house numbers of the house that PaPal has on record or for get about it. This is to ensure that you sold your product to the person that is the person named on the card. Wow. 

 

Long story short, you will only be covered for sales which PayPal can verify that the card holder transacted. In an effort to combat the growing risk of credit card fraud, PayPal Invoicing allows a seller to send an email to a buyer and the buyer chooses to use either their PayPal balance, a credit or debit card on file or any other form of card payment to complete the transaction. If the invoiced customer has a PayPal account and usually they also have a verified address, you will see "Eligible for Seller Protection" included on the invoice before you even send it. If the customer does not  have a 
PayPal account already, they can register then or choose to pay with card and not register. Either way, you are guaranteeing that the person you are doing business with is verified by email which is verifiable proof if the customer wants to dispute the transaction. If they are registered and verified as a PayPal account holder then sending a buyer a PayPal Invoice thru the PayPal Invoice website are you protected when a customer files a dispute with PayPal as product not received or product or service not as described? Well in some cases yes. What if my customer pays the invoice that I sent thru PayPal, the customer is notified thru his email and thru his PayPal account of the amount owed and the customer pays thru the PayPal portal, is this proof enough of purchase by the person named on the card? 

 

Recently, as usual, upon payment I delivered a customer his vehicle. The customer does have a registered PayPal Business Account and the transaction was tagged as eligible for seller protection. I wanted cash only from this customer despite several prior transactions in the past, this was for over four thousand dollars and I was getting weird vibes from the dude this time. On the phone and on the invoice sent thru paypal I told him cash only when I deliver the vehicle. He paid the invoice online and sent me a text "If you start demanding cash Ill call the police because you are holding it hostage" whatever, but he paid so I had no choice and I delivered his vehicle. Next day I get a notice. He filed a dispute with PayPal as product not as described, the money was taken out of my account. I called and PayPal and explained my side and they put the funds back into my account, case closed. Later that day after 11pm, I get a notice from PayPal. "One of your customers has initiated a chargeback with their financial institute and the funds are being held while we investigate" the reason code was product not as described. I provided proof of purchases, text messages, emails, before and after pictures etc. 30 days later PayPal sends the case file to the customers financial institute. And I receive another notice "One of you customers have filed a chargeback with their financial institute" reason code unauthorized transaction, the customer states that they did not authorize the transaction. This is followed by an email from PayPal, this transaction cannot be covered under seller protection due to lack of evidence provided by the seller, If the buyers financial institution decides in your favor we will notify you and the funds may be put back into your PayPal account but no chargeback fees will be reimbursed. Then "the buyers financial institute has decided in favor of the buyer, no seller protection is available do to lack of proof of delivery or no signature provided by online verifiable shipping company. Your account is overdrawn and you are required to make up the negative balance".

 

Here is something on PayPal website:    

An invoice is a confirmation that a service has been performed or a product was shipped. People can say that invoices are confirmations or receipts, but let's not kid ourselves: most of my clients invoice their customers because they want to get paid - which is why you have to include payment terms on every invoice.

Yes, it's important that your customers know the details of what they bought from you - amounts, dates, accepted payment methods, descriptions, quantities, etc. – but just as important is laying out the rules for customers to pay you. An invoice is a legal document that's providing proof of sale. Without any payment terms, how would a third party - a lawyer, a judge, an arbitrator - determine if a customer is behind on payment?