How to get free goods using PayPal. (99% successful rate)

[TooCooltoCold]

I post my experience to remind every seller who uses PayPal as payment collection.

3 months ago, a customer purchased some items from my store using her credit card through PayPal. And she received the goods, which she admitted and confirmed on WhatsApp for several times.

But 3 months later, she filed a chargeback from her bank with the reason "unauthorized purchase" and opened a dispute case from PayPal.

Though I uploaded clear, full, evidence to appeal, PayPal still made a refund and even gave me a $8 penalty.

PayPal staff refused to reopen the case after I called them, because:

The chargeback process is initiated outside of PayPal, between the card issuer and their cardholder. In a dispute over a chargeback, the decision is ultimately made by the card issuer and we don't decide the outcome. Unfortunately, the issuer has ruled in favor of the buyer.

PayPal charges a fee (based on the currency received) to the seller when the buyer files a chargeback with his/her credit card issuer.

I then asked for the banks' information, and was also refused by PayPal. They suggested me to contact the customer for it.

Unfortunately, the customer is very likely a scammer, and she has stopped communicate with me, and of course would not tell me her bank, since she filed a false chargeback.

So I came to this conclusion: if a scamer did a purchase with their credit card through PayPal and filed a chargeback through their bank with the reason “unauthorized purchase”, they have a 99.9% chance to get a full refund.

When this happens, PayPal will do nothing to protect the seller no matter how big a amount you lose.

Am I right?

[kernowlass]

@TooCooltoCold 

All of which it clearly states in paypal sellers protection policy for you to read and then risk assess your transactions.

[kernowlass]

@TooCooltoCold 

Feel free to do fraudulent chargebacks if your conscience will allow that, personally mine wouldn't.

Also if you keep doing fraudulent chargebacks then you may well find your credit card company will refuse to continue doing so.....your call.

As for encouraging others to commit fraudulent behaviour I will report your post for you so Paypal are aware of what you intend to do.

[kernowlass]

Hmm seems as if he has now removed that post, wonder why?  🤔  😜

[TooCooltoCold]

Hello. Thanks for your reply. It's right of you to report my last reply. So it's okay.

My opinion is, our sellers can not tell if a transaction on PayPal is done by credit card or not. Such information is not shown to sellers. If a group of people intend to do such fraud on purchase, it's easy to get what they want.

I know it's clearly stated in the policy, but it's not a fair policy since this information is not revealt to sellers, and PayPal will do nothing when such frauds happens. The only solution we can do is to use PayPal less or turn to other payment collection service.

And btw, I apologize if my last reply is offensive to you. I realize you are just a volunteer, not a PayPal staff. Sorry if the tone in my last reply made you uncomfortable. 🙏

And also, I posted the "fraud method" just to caught PayPal's attention, not that I'm really going to fraud in this way. I believe that there are already scammers posting this method online, that's why I encountered the lost.

To be honest, if PayPal don't fix this bug, sooner or later, this scamming method is going to be widely spreaded all over the internet. We sellers will be the victims eventually.

Whatever, have a nice day. [Removed] all the scammers.