Hi Colin, I just wanted to make sure that somebody at PayPal looks into this loophole. It's been 9 days since sent this email to the office of executive escalations and I have exhausted my available time trying to help you guys and this will be my final attempt to do so. In a nutshell, my concern is that your website clearly states "If you resolve a dispute through the Resolution Center, Paypal will protect you 100% against any future claim, chargeback or bank reversal the buyer may file for that transaction" (you can see this here: https://www.paypal.com/cgi-bin/webscr?cmd=xpt/Marketing/securitycenter/sell/ChargebackGuide3-outside I have been told repeatedly that this is not true, yet the advertisment remains. My concern also spans into the application of your double jeopary policy as well as a conflict of interest in your dispute resolution process insofar as the buyer chooses the type of disput (e.g. SNAD, INR, etc) and therefore determines wether the seller is covered by your protection policies. The way your current process is designed a fraudster can scam any seller they want by doing the following: 1. Win an auction, pay with a credit card via paypal. 2. When the merchandise comes in initiate a SNAD (significantly not as described) paypal dispute and a chargeback through your CC company. The fraudster may win or lose the paypal dispute, but it doesn't matter, the CC company will still process the chargeback and since the fraudster initiated the dispute as SNAD the seller is not covered by PayPal's "Seller Protection Policy." 3. If the CC company requires proof of return shipping, ship the seller an empty box and forward on the proof. The CC company will accept this as indisputable proof of a good faith effort to return the goods (even though the fraudster clearly stole them). 4. Now they’ve got the merchandise and the money. I have spoken to numerous people at Paypal (reps, supervisors, escalations, etc) about this, and every one admitted that: a) This enables chargeback fraud; and b) Paypal is falsely advertising protections against it. Feel free to pull my call logs over the past month, I think you'll be surprised to hear what your own people have to say about this.
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