Seller Protection and PayPal Invoicing Question.

[Temp20201216ag]

I am a automotive parts and service supplier and Iv'e been a PayPal business customer for 10+ years. I use PayPal invoicing for most transactions with my customers because its easy, I can allow partial payments in cases where I require the customer to pay for parts upfront and I get access to the funds instantly. After their job is complete I collect the balance thru the same invoice if the customer hasn't already just paid the invoice in full from the onset, usually the case. 

As I understand, a lot of electric payment fraud has been reduced with products like PayPal Invoicing. PayPal Invoicing requires me to create a detailed or itemized list of the parts and services I provided and then send the invoice directly to my customers email address which is also typically on file with PayPal and usually also if the prior is the case, will display the customers verified address which can determine right up front if the transaction is eligible for PayPal Seller Protection. PayPal Seller Protection covers you for some transactions if you customers files a dispute thru PayPal. It also covers the full transaction if your customer files a chargeback thru their financial institute. That is unless you are me. Paypal's policy's and their Seller Protection are only valid for transactions that occur when the seller sends goods to a verified paypal address listed on the buyers paypal account. So, no in person, card present, chip card or not, transactions are eligible for seller protection because the goods have to be sent to a verified address, you must supply shipping and tracking information and in cases were the transaction amount exceeds a certain dollar amount you must also obtain thru the shipping company, a signature from the person listed on the verified addressed PayPal registered and verified account holder only, and a picture of that person holding their state issued ID standing next to the house numbers of the house that PaPal has on record or for get about it. This is to ensure that you sold your product to the person that is the person named on the card. Wow. 

Long story short, you will only be covered for sales which PayPal can verify that the card holder transacted. In an effort to combat the growing risk of credit card fraud, PayPal Invoicing allows a seller to send an email to a buyer and the buyer chooses to use either their PayPal balance, a credit or debit card on file or any other form of card payment to complete the transaction. If the invoiced customer has a PayPal account and usually they also have a verified address, you will see "Eligible for Seller Protection" included on the invoice before you even send it. If the customer does not  have a 
PayPal account already, they can register then or choose to pay with card and not register. Either way, you are guaranteeing that the person you are doing business with is verified by email which is verifiable proof if the customer wants to dispute the transaction. If they are registered and verified as a PayPal account holder then sending a buyer a PayPal Invoice thru the PayPal Invoice website are you protected when a customer files a dispute with PayPal as product not received or product or service not as described? Well in some cases yes. What if my customer pays the invoice that I sent thru PayPal, the customer is notified thru his email and thru his PayPal account of the amount owed and the customer pays thru the PayPal portal, is this proof enough of purchase by the person named on the card? 

Recently, as usual, upon payment I delivered a customer his vehicle. The customer does have a registered PayPal Business Account and the transaction was tagged as eligible for seller protection. I wanted cash only from this customer despite several prior transactions in the past, this was for over four thousand dollars and I was getting weird vibes from the dude this time. On the phone and on the invoice sent thru paypal I told him cash only when I deliver the vehicle. He paid the invoice online and sent me a text "If you start demanding cash Ill call the police because you are holding it hostage" whatever, but he paid so I had no choice and I delivered his vehicle. Next day I get a notice. He filed a dispute with PayPal as product not as described, the money was taken out of my account. I called and PayPal and explained my side and they put the funds back into my account, case closed. Later that day after 11pm, I get a notice from PayPal. "One of your customers has initiated a chargeback with their financial institute and the funds are being held while we investigate" the reason code was product not as described. I provided proof of purchases, text messages, emails, before and after pictures etc. 30 days later PayPal sends the case file to the customers financial institute. And I receive another notice "One of you customers have filed a chargeback with their financial institute" reason code unauthorized transaction, the customer states that they did not authorize the transaction. This is followed by an email from PayPal, this transaction cannot be covered under seller protection due to lack of evidence provided by the seller, If the buyers financial institution decides in your favor we will notify you and the funds may be put back into your PayPal account but no chargeback fees will be reimbursed. Then "the buyers financial institute has decided in favor of the buyer, no seller protection is available do to lack of proof of delivery or no signature provided by online verifiable shipping company. Your account is overdrawn and you are required to make up the negative balance".

Here is something on PayPal website:    

An invoice is a confirmation that a service has been performed or a product was shipped. People can say that invoices are confirmations or receipts, but let's not kid ourselves: most of my clients invoice their customers because they want to get paid - which is why you have to include payment terms on every invoice.

Yes, it's important that your customers know the details of what they bought from you - amounts, dates, accepted payment methods, descriptions, quantities, etc. – but just as important is laying out the rules for customers to pay you. An invoice is a legal document that's providing proof of sale. Without any payment terms, how would a third party - a lawyer, a judge, an arbitrator - determine if a customer is behind on payment? 

[sharpiemarker]

@Temp20201216ag 

I don't believe PayPal Invoicing has a feature where you can send an online invoice with the online payment disabled. But its possible to send the PayPal invoice as pdf and put your terms that's its cash only, in-person:

Make your invoice, save as draft instead of sending it. Click the More menu within Invoice and select PDF, it allows you to download PDF to send. Then when buyer pays, do Record Payment on the Action menu of invoice on Manage Invoices page and send as PayPal Receipt. 

1) Vehicles and transactions where you hand deliver in person are not covered under seller protection (does not matter if you sent a PayPal invoice).

2) Sellers are not protected if the chargeback or dispute is for Significantly Not As Described.

3) If you cannot provide proof of postage or at best, proof of delivery (with sig. conf, where applicable) for unauthorized purchase chargeback, you are also not covered.

4) Chargebacks are a different animal from your standard PayPal dispute. The financial institution (FI) makes the decision whether or not the buyer gets refunded, not PayPal. If the FI refunds buyer, PayPal owes the FI the money and PayPal holds you liable. We are sub accounts to PayPal merchant account.

5) If your transaction does not meet the terms of Seller protection in full, PayPal will not cover your liability, and in their sole discretion.

6) There seems to be a change in the dispute reason and dispute venue too since buyers are also not covered under PayPal purchase protection on vehicles so buyer has to go through their card issuer or bank.

Seller Protection terms:

https://www.paypal.com/us/brc/article/seller-protection

https://www.paypal.com/us/webapps/mpp/security/seller-protection

PayPal seller and purchase protections are not a 100% guarantee, warranty or insurance; PayPal never claimed this and so has it's limitations. Not all kinds of transactions are covered. PayPal is good for selling car parts/accessories but not vehicles, boats, motorbikes, mobile homes, etc. Do cash and carry for that.

If you take the buyer to small claims court then what PayPal says regarding invoices could apply.

[Temp20201216ag]

Thanks captain obvious.

The whole point of requiring the confirmed shipping or tracking to a confirmed address and signature receipt  are to ensure that the card matches the buyer, the buyer lives at the shipped to address, and the buyer bought it, that the card holder or customer requested shipping, received the product in same described condition and so on.

My transaction was reported as unauthorised you robot. And my point is that if the buyer received the invoice in his paypal account and in his email. How cant paypal treat this as there is no proof of delivery. And how is it possible that paypal, while representing me and my best interests is unable to prove to the buyers card company that he is the only person with access to the account and he is the only person with access to his email account and because there has been no disputing these facts, he must be the person that did in fact make the transaction which he claims was not done by him after he had already filed a dispute thru paypal in which he describes that he is dissatisfied with the service? Explain that if your so incline to explain what I haven't heard already. Did you post your comment for me or for some nooby that might be looking in the wrong place for a good merchant services provider? 

There is a reason paypal requires all the proof of delivery and I get it. There is a reason that paypal doesn't offer seller protection for person to person transactions and I get that too, kinda. But invoicing like I stated before is proof of purchase, is proof of delivery, and is proof that the person on the account authorized the transaction. 

My account is classified as a parts and service provider. When I send invoices thru paypal to paypal registered customers with verified addresses, the eligible for seller protection badge lights up. It is meant to because I am doing business with a registered paypal customer and there is no basis to disclude the transaction from seller protection especially when after a dispute fails thru paypal and the is taken to outside of paypal and coded as unauthorized.

Your comment is so robotic, I have no doubt that you are employed by paypal and it is your job to monitor these forums and act like all this is common knowledge. Products evolve and change for the betterment of the clients they serve. Paypal Invoice was created to combat online fraud and make sure that the customers utilising paypal had a more secure way to transact business and when they use it properly that is what it does. Paypal just hasn't evolved with there products. Any even you yourself haven't come out of the dark either. Where is your humanity? I have lost thousands of dollars to what is coined as friendly fraud. This guy payed the bill with every intention to get his vehicle back knowing if paid I was obligated to release collateral lien and he had every intention of not paying. And so you know if you are human you may be wondering what kind of auto repair could cost $4,000.00, I replaced the entire roof on his 38' RV Coach. He also was paid $12,000.00 by his insurance company after his deductible for the roof when it was damaged by a renter whom also was billed for $16,000.00 and paid by his insurance. I gave the customer a good deal and proved it to paypal with pictures, receipts, text messages, voicemails and emails but paypal has no ability to represent me in the chargeback with the customers card company. That is the worst kind of customer service and the poorest effort at representing me best interest I will ever tolerate again. Not one, and there has been a number of agents, paypal customer agent has shown me even the smallest hint of sympathy during the entire ordeal. Not one Mr. Customer I am very sorry that has happen, Never did any paypal agent even say this is not right lets see what we can do.  Only the exact same thing that you said give or take, your statement or what you have posted is not fully correct according to paypal's latest policy as it was explained to me. You do not need to reply with more paypal nonsense, I already know what you are programed to say.      

[Winter4]

I can’t understand why a seller sent me an item not working. I offered to return the item for the return of my money. Paypal has up held the sellers case and I’m the complete looser Also. The second transaction that Iv been unsupported by PayPal. The goods arrived completely different from my order. Offered to return the goods for my money returned. Again this time Iv had no support. Lost all my money. The fact these sellers are in China may have something to do with it.