I've been a trusting and supportive Paypal member for many years and in all that time I have never had any reason to doubt or fear for the security provided by Paypal... until now. The recent integration of SHIPSTATION has undermined my long-standing and unerring faith in Paypal and my experience has indicated a cancerous root.
I've printed countless shipping labels through Paypal and I've never encountered a single issue, but yesterday morning I found a postal back-charge on my account which had been initiated and collected by Shipstation... a third-party vendor with direct access into my Paypal life. The back-charge appeared on my account history without explanation or association, and it was only through my personal email that I was given the tracking number of the label in question, although there was still no reason given for the fee (small, though it was).
My first inquiry was met by a Paypal representative from an overseas location who explained that the charge was a "recurring fee", resulting from my enrollment in Shipstation. He immediately offered to refund the fee and cancel my enrollment... which would have been far less time-consuming... but this simple solution would have been wholly unsatisfactory. My concern wasn't about the money, but rather how Paypal could or would involve a third party vendor into their otherwise stellar business model, and how I could have been "enrolled" in a pay-to-play program without my knowledge. When the call ended, I referred to Paypals' policies and legal agreement.
I had literally been told a LIE, by a Paypal representative (an unthinkable act at any earlier point). Paypal's legal agreement specifically states that Shipstation is not accompanied by any on-going, pay-to-play fee... and so my investigation continued. I contacted Paypal again and was met with a more helpful rep: In fact, it was she who directed me to my email, where I found that tracking number. Still, she instructed me to carry my concern directly to Shipstation, where direct contact is impossible. So, I submitted my concern and waited for a response. A short while later, I received that response, and it was claimed the back-charge arose from my having shipped a USPS First Class label on a USPS Flat Rate Priority envelope... a ridiculous notion, to be sure... but she further explained that any dispute could only be resolved through the USPS.
The USPS discounted this theory and claim entirely: Moreover,they didn't seem to recognize Shipstation as a USPS vendor! However, she suggested that I contact my buyer and ask if they still had possession of the original package (a 10x6x1 yellow bubblemailer). As I congratulated her genius, I suddenly remembered that I had, in fact, hand carried that particular envelope to the post office myself, and I still had my USPS counter receipt, proving that my package had been accepted, inspected, weighed and scanned by the USPS at the time of mailing.
So, I responded to the email from Shipstation and submitted my physical evidence, and I immediately contacted Paypal with the same evidence. My hope was inform Paypal that they had willingly brought a fox into the hen house: Whether Shipstation is wildly incompetent or truly a bad actor remains to be seen, but it is clear that Paypal has invited a third-party vendor to encroach on Paypal's security, and that this third party is currently able to function without accountability or oversight.
This morning, Paypal put the few dollars back into my account... but that hardly excuses the presence of Shipstation within the net of Paypal security, and it hardly excuses the original lie tossed at me by a Paypal representative.
