cancel
Showing results for 
Search instead for 
Did you mean: 

PayPal Buyer Protection Scam/Bad Policy

SOLVED
Contributor

PayPal Buyer Protection Scam/Bad Policy

PayPal's buyer protection policy that goes for 6 months beyond the purchase date and is easily used to defraud ebay sellers. Any buyer on ebay can wait until the ebay return period expires and then make up a bogus reason for a refund and they will get their money returned. There is essentially nothing the seller can do to protect themselves.

Here's what happened to me. April 11 I sold a brand new in box android phone on eBay. Five months later, the buyer contacted me and informed me the phone worked fine on Verizon until September 8 when he attempted to upgrade the OS and bricked the phone. He wanted me to refund his money. He even provided a photo of the phone screen showing it was bricked. I liken this to him smashing the screen 5 months after purchase and wanting his money back. I said no, you broke it.

He put in a refund request with PayPal simply claiming "phone not as described, only works on Sprint", no details, no proof. I provided Paypal a detailed response and included the message exchange.

PayPal found in favor of the buyer. When I called, PayPal told me they don't accept ebay messages or photos as proof. What do they take? Your word against theirs and to keep buyers happy they usually find in the buyer's favor.

I am not a small business, I'm just some guy struggling to make ends meet who resells items I find cheap. I don't have the money to pay a bogus return. Nevertheless, PayPal says they will deduct it from my empty checking account and I have NO recourse. What's worse, I was told even if the phone is physically damaged, as long as the tracking number shows a completed return, I'm out the money.

 

The worst part for me is that PayPal takes no risk on a policy that is so easily defrauded. ALL OF THE RISK IS TAKEN BY THE SELLER. What did this bad decision cost PayPal? Nothing. I have proof he is lying and provided it, but PayPal never bothered to look at it.

 

Anyone know if there is anything I can do? I already plan to shutdown my eBay and PayPal accounts. IMHO, PayPal is the worst form of payment a seller can accept. AT least credit card companies look at the evidence provided to them.

1 ACCEPTED SOLUTION

Accepted Solutions
Esteemed Advisor

Re: PayPal Buyer Protection Scam/Bad Policy

@tdg63

 

In the event of an item received but not as described dispute it is always one persons word against anothers.

So paypal do tend to find in favour of the buyer BUT the buyer has to return the item back to you trackable to prove delivery before you have to refund.

Its just one of the risks of online selling, you are always going to get the odd pain in the butt buyer.


Advice is voluntarily given.
Kudos / Solution appreciated if I helped you.
4 REPLIES 4
Esteemed Advisor

Re: PayPal Buyer Protection Scam/Bad Policy

@tdg63

 

In the event of an item received but not as described dispute it is always one persons word against anothers.

So paypal do tend to find in favour of the buyer BUT the buyer has to return the item back to you trackable to prove delivery before you have to refund.

Its just one of the risks of online selling, you are always going to get the odd pain in the butt buyer.


Advice is voluntarily given.
Kudos / Solution appreciated if I helped you.
Contributor

Re: PayPal Buyer Protection Scam/Bad Policy

He's returning a phone he destroyed. He is scamming the system and they created the scam opportunity.

 

Anyone requesting a refund should have to prove the product is "not as described." Easy to do. He could have asked a Verizon rep to confirm the phone was locked to another carrier, but he couldn't because he'd been using it for 5 months on Verizon.

 

I guess it is time to stop selling on ebay. I thought it was a great place to sell your old stuff and make an occasional profit on a deal you found somewhere. I'm finding it's become a place where you supply the product eBay makes the money. Then PayPal comes along and creates this HUGE scam opportunity and puts me under.

 

Once the big time fraudsters begin the leverage this on an industrial scale I don't want to be using PayPal. I've already heard of this scam being used a lot. Break an item up to 6 months out file a dispute with ebay. Then mail back an empty box.

 

Guess small claims court will be my next step.

 

Advisor

Re: PayPal Buyer Protection Scam/Bad Policy

ebay gives the seller 30 days,but Paypal and cc issuer give 180 days,WHICH I think is ridiculous,3 months is a long time,and 180 days??

THE only way to avoid this is to take non electronic payment like cash or money order,which means you cant sel on Ebay

Highlighted
New Community Member

Re: PayPal Buyer Protection Scam/Bad Policy

My problem is with eBay. I sold a Gerber printer recently in good working order and specified Local Pickup Only. The buyer is halfway across the US from my location and had UPS do the pickup as her agent. She then ran it and got poor results using materials which were not recommended for this printer by the manufacturer as well as most likely out of date. She next filed for a refund with eBay and ignored all help we offered. eBay gave her her purchase price back and agreed not to levy any additional charges. Now over my screaming objections in the name of buyer satisfaction they are billing my account for shipping charges amounting to more than 25% of the selling price. So I not only lose the sale, but am going to be losing about $300 in freight charges I never agreed to be responsible for.