Selling Risk??

[Samdonii]

What would happen if I sell something on Ebay and the person i sold it to sends me a payment that is confirmed and went through and I spend the money and there bank bounces back the payment and refuses to pay it? Will paypal make them pay back the money or will I have to? Does Paypal make sure things like this do not happen or is this something I may have to worry about?

[PayPal_Adrian]

Samdonii,

If PayPal does receive a reversal filed by the bank, your loss may be covered under the terms of the Seller Protection Policy.  To read more about how you're covered against these types of losses, and the requirements to gain this coverage, please see our information about this policy here: https://www.paypal.com/cgi-bin/webscr?cmd=xpt/Marketing/securitycenter/sell/SellerProtection-outside

You can also read the exact verbiage in our legal agreement if you'd prefer by clicking on "Legal Agreement" at the bottom of any page.

Hope this helps,

Adrian

[liuchess]

Do you mean a e-check bounces or the buyer files a bank chargeback?

e-Check the check will bounce. You're not supposed to hand over goods until a e-check clears likea  normal check.

If it's a bank chargeback then the bank conducts the investigation. You are covered by eBay and PayPal if you fulfill their protection criteria.

[PayPal_Adrian]

Exactly! 

Excellent advice - don't ship an item if a payment is still uncleared.

However, banks in the US can file a reversal (think of it as a stop payment request) for up to 60 days after the payment is made.  Therefore, a possibility exists that once an eCheck switches over to "Cleared," a bank reversal could still occur.  That's where the Seller Protection Policy becomes your best friend. 

Hope this helps,

Adrian

[mschenker]

Hello,

Your bigest "risk" as a seller is not whether a check clears.  Your biggest risk as a seller is PayPal refusing to pay you after a sale!

PayPal now has a policy of holding (i.e., stealing) your money.

I sold something on eBay weeks and weeks ago.  I shipped right away and received positive feedback.  But PayPal is "holding" my money.  I even called PayPal customer service, and sent an hour on the phone.  The rep said the funds were being released.  PayPal even sent me an e-mail confirming that the money was on the way.  But still, my money is being "held."

Now, I have a new problem.  The money no longer shows up in my PayPal account screen, bu it is also not being deposited into my checking account either.  The money appears to be gone.

I'm not alone!  If you are a seller -- BEWARE!  PayPal holds your money for no apparent reason and refuses to release it, even after you ship the item and even after you receive positive feedback.  Sounds ike simple theft.

Don't believe me?  Do a search for "hold" in this forum.  Also, check out this thread:

https://www.paypal-community.com/t5/Receiving-money/PAYMENT-HOLD/m-p/127694#M5244