PayPal Fraudulent Practices

B727skyguy
Contributor
Contributor

I live in the United States and bought an item on eBay from a seller in the United States.  The seller sent me a correct invoice showing the sales tax for my state as 5.5% ($15.57 on a purchase of $283).  After I completed the payment on PayPal, I noticed that PayPal erroneously increased the sales tax amount to $17.39.  Although it is a small amount ($1.82), it is still an error on PayPal's part.  I expect them to correct it.

 

The "customer service" representative at PayPal is refusing to correct the error.  He sent me a link to their fee policy and claimed that buyers must pay an additional fee of 2.9%+$0.30.  https://www.paypal.com/us/webapps/mpp/paypal-fees

He claimed that the purchaser fee applies to anyone who completes a purchase with a credit card.  The fee structure clearly states that all purchases in the US are fee free.  There are no exclusions to that policy.  Sellers are charged a processing fee of 2.9%+$0.30.  I have explained repeatedly that I am the buyer, not the seller and that Wisconsin is in the United States.  The PayPal representative is standing firm and has refused to correct PayPal's error.  I told him I will be happy to file a formal consumer complaint with my state's Department of Consumer Protection and a formal dispute with my credit card company.  Instead of correcting the error, he said, "I will respect your decision if you are going to dispute it with your financial institute. "

 

It is important to note that even if the representative's theory were correct, the amount of the increase would b[Removed. Phone #s not permitted]51).  In my case, the difference is $1.82.  Clearly the representative does not understand the situation despite PayPal's published policy on the link he gave to me.  I use PayPal frequently for purchases and have never paid an additional fee. 

 

 

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2 REPLIES 2

kernowlass
Esteemed Advisor
Esteemed Advisor

@B727skyguy 

 

Sounds as if you were talking to another so called 'agent' reading from a script with no idea what they are talking about.

The fee they were quoting for the credit card only applies to payments made using the friends/family options when if you fund it via a card you pay a fee.

It does NOT apply to buyers buying items where it should be fee free.

 

I would try and contact another agent and you may get one with a brain cell if you are lucky who may give you a proper explanation for the extra charge as I am not sure about sales taxes in your country.

 

If you get a proper reason post back and update us? 

 


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B727skyguy
Contributor
Contributor

You are exactly right.  These are offshore agents who are reading off a script.  I can tell because they are using fractured grammar and just repeat the same thing without explaining their reasoning.  They are actually encouraging me to file a formal dispute with my credit card company.  I have also told them that I will file a formal complaint with my state's Department of Consumer Protection.

 

I have also pointed out to them twice that the math does not work out to support their theory that all buyers must pay a fee of 2.9% plus $0.30.  PayPal increased the sales tax by $1.82.  If they were charging me the fee they claim to be charging me, the amount of the overcharge would be $8.51.  None of what they are saying makes sense or complies with their published policy.  The agents don't care, because they're just contractors working in an offshore call center.  Now I'll fight PayPal even harder just out of the principle of the thing. 

 

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