Yeah I just got hit HARD by this...
I had called and spoke with a PayPal representative before I started using PayPal to sell cryptos. The representative told me that as long as transactions were taking place via the invoicing system that I am covered under the protection policy against any fraudulent chargeback claims.
In theory this makes perfect sense, because via the invoicing system you can set Terms & Conditions, Return/Refund Policies, etc. PayPal also gets to make their cut of your profits when using invoices, so with that being the case I set the most lengthy, wordy, overbearing set of Terms and Conditions that I could possibly come up with. The following is what I put on my invoices:
By paying this invoice you hereby agree to conform to all Terms and Conditions set in place on www.localbitcoins.com as well as all terms and conditions set in place by www.paypal.com. You also agree that this is payment can NEVER BE REFUNDED. By paying this invoice you agree to forfeit any and all rights to be used in an attempt to revoke payment at a later date. Should a case be opened against me (the seller) then by accepting this invoice and further sending payment of this invoice you agree that all cases will be immediately closed in MY favor for which you will NOT be able to win. Only pay if you accept and agree with these terms and conditions.
And in the notes section I also put:
This is a non-refundable purchase. Payments sent via eCheck, Friends and Family, Credit/Debit Card or PayPal Credit will not be accepted.
I have 3 days worth of Google Voice text logs between me and a buyer from Localbitcoins where I just went out of my way and spent **bleep** near my entire funds to get more and more Bitcoin to sell to him, I have screenshots from the buyer that were of the account and Drivers License, and considering an event I experienced a few months ago in which a hacker guessed my password and PayPal immediately locked down my account, preventing any further access, I thought there was absolutely no way for this to go wrong.
The buyer paid for three invoices over the course of three days, the first for $1500, the second for $1499, and the third for $1545. The first payment went through and was available instantly. The next two PayPal decided to hold the funds, even though I transact much higher volume with them in the past and have had my account for many years. I called and was fed the same bull **bleep** that they always spoon-feed their employees "we hold the funds to make sure that everything is going safely". So I had to wait for three days before I could get my rightfully earned money. After the second day I get one chargeback for the third transaction of $1545, then while on the phone with PayPal I'm told completely the opposite of what the first rep told me!! "Since this is not a tangible item you are not covered under seller protection". ARE YOU **bleep** KIDDING ME?! NEWS FLASH PAYPAL, BITCOIN IS A **bleep** TANGIBLE ITEM!! THERE IS A PERMANENT LEDGER OF EACH AND EVERY TRANSACTION PUBLICLY AVAILABLE FOR ALL TO SEE AT ANY TIME!! Oh but it gets better! While on the phone with the rep, who by the way told me that it doesn't matter what the seller has to say against "unauthorized charge" claims, because the ONLY EVIDENCE LOOKED AT IS THE LOGIN INFORMATION OF THE BUYER AND IT IS UP TO THE REPRESENTATIVE TO DETERMINE IF ANYTHING LOOKS "SUSPICIOUS" TO MAKE THE DECISION WHETHWR THE SELLER GETS REFUNDED OR BENT OVER BACKWARDS **bleep** IN THE **bleep** BY FRAUDULENT BUYER **bleep**. It doesn't end there yet! As the phone call was ending I checked and sure enough the second of three chargebacks came through of $1499! So the rep gives me an email for this fabled and magical "back office" whom have absolutely no direct contact apparently, and that I will need to wait 1 to 2 weeks before I get an answer or decision.
So that's just **bleep** great. I just lost over $4000 grand total because PayPal are a bunch of dumb **bleep** **bleep** stuck in the Stone age and can't understand what Bitcoin is. Bitcoin IS a tangible item. There is a **bleep** Bitcoin ATM two blocks from my house. I **bleep** pull my Bitcoin out of it in the form of Fiat US Dollars often. Anybody can see how much and with whom I transact via the blockchain from now until forever. It is **bleep** tangible. Now my business is absolutely **bleep** because of a false assurance given by a PayPal rep and the fact that PayPal refuses to take one for the team in the event some stupid **bleep** gets his account hacked. Guess what? It's not my **bleep** fault you're account got hacked. It's PayPals fault they were able to spend your money, because with the amount of security in place with PayPal nobody should ever be able to gain unauthorized access to funds, sure an account can get hacked, but actually spending money is a completely different story. That's YOUR **bleep** fault PayPal, why not take some of that money you get from your fees and hire some **bleep** competent security professionals? Or better yet! Pull your **bleep** head out and realize the ONLY alternative that could possibly be the reason for an "unauthorized charge": BECAUSE IT IS AN INTENTIONAL RUSE TO FRAUDULENTLY ABUSE THE ABSOLUTE LACK OF PROTECTION YOU HAVE FOR HONEST SELLERS. **bleep** you PayPal. **bleep** you.
