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I ordered a guitar through a Facebook ad, paid $108. I should have guessed that there was something dodgy when the shop disappeared from Facebook almost immediately and I got no confirmation of the purchase.
I filed a complaint and like many others, PayPal just blew me off because the seller had provided them with some dodgy tracking number. I put the tracking number in the USPS website and nothing came up as delivered on that date and I sent them a screen shot of the tracking page.
I could just chalk this up to experience, buy I'm too stubborn to let the **bleep** get away with it and PayPal should know better.
Paypal is just a payment processor that gives you 'some' buyer and 'some' seller protection.
So disputes for non receipt of item are mostly automated. Seller provides tracking that shows delivery = seller wins.
So then its your turn to do some work to assist Paypal in recovering your purchase price from your seller.
Firstly ring customer services and tell them that the number is fake or that the item was shown as shipped before you purchased it. With that information they may well just issue you a refund.
Secondly if they don't then... APPEAL
To submit an appeal on the dispute that was closed, PayPal asks that you obtain a detailed report from the shipper/courier (on their letterhead or some other form of official stationary) that includes the address the seller gave them for the shipment. Or one that includes a statement mentioning your address and saying the item was delivered to a different address. THEY DON'T HAVE TO SAY WHICH ADDRESS IT WAS SENT TO, JUST THAT IT WAS NOT DELIVERED TO YOUR ADDRESS.
Check tracking in below link to see where it went.
When you have that, contact PayPal via phone (log on to your account and click contact at the bottom of the page, or via Facebook (send a Private Message to PayPal) or via Twitter (send a Direct Message to @AskPayPal) and say you want to appeal the denial of the dispute based on the shipper saying the item was delivered to a different address. Once it's submitted (you will be provided with directions on how to do that), the dispute will be reviewed further and a determination will be made.
You also have the option to contact your card issuer if you funded your paypal payment that way and see if they will do a chargeback for you.
Pay Pal have repeatedly sided with the scammers and keep denying the claim despite the fact, the USPS said it was an item worth about $3.oo and not a guitar as ordered!