Paypal Offers No Seller Protection Against Chargeback

February 04, 2010 By: admin

Hello, my name is Terry, I am writing here my experience with paypal for the people who are either considering to use paypal or just trying to find pros and cons of Paypal. If you are selling small items like less than $10 then Paypal is probably good for you because you are not going to be targeted by scammers that exploit the paypal system and credit card chargeback process. Now what I mean by this is if you are selling $100 or $200 items which are very desirable to people but are out or reach for them due to which they inclined to use credit cards then Paypal is probably not the best service for you because they offer absolutely no protection. For instance, I recently sold a Macintosh amplifier to a gentleman, 3 states away from me. That Gentle man bid on my item, he used buy it now, he paid properly with paypal, when the amplifier was shipped to him, I got emails from him, exclaiming how happy he was with the amplifier and how excited he was to hook it up with his speakers. He informed me that he has to call Macintosh to see how he probably hook up the amplifier since it was 20 to 25 years old and I have no literature to explain how to hook it up. He did have some cosmetic issues noted in the auction. The item which I bought for $3000, I sold him for $1200 with denoted cosmetic issues. He sent me an email exclaiming how happy he was for the paint job which he gave to the amplifier and how it beautiful it turned out. He said, he used high quality spray paint and he has done it numerous times and he considered it and expert paint job. Well, he hooked up the speakers with Macintosh recommendations and he decided that he doesn’t like the amplifier. Not that because it was bad, not because it was damaged in shipping, not for any other reason, but just because he doesn’t like it he wanted me to offer him a refund. I said no, I am not going to offer you a refund because I am concerned about you painting it. He said, I did a quality job, you should be able to sell it for more money now. I offered him that why don’t you sell and you keep the money as because I don’t want to take a risk because first, you are going to send back it to me via shipping and secondly I think your paint job is not up to my standards. After I explained this to him, He probably went to his credit card company and he did a chargeback. Paypal held the funds in my account which was $1200 and they contacted me about it and sent them emails from the client explaining that he painted the amplifier and said that I have no obligation for this customer to refund because he painted my amplifier. Apparently, Paypal agreed with me and decided with me and the funds were returned to me. So I won that paypal dispute ultimately, it was reversed, after I have already won, the dispute process just reversed. Customer got all the money back by chargeback and he got to keep the amplifier. Now during a proper chargeback, payment is not refunded until the sold goods are not shipped to the seller. Not like this customer who did a chargeback while sitting in his living room and he never sent my amplifier back to me. Well after contacting law enforcement in his city, he finally did send it back but not to me, he sent it to Paypal. Then I got emails from Paypal that I have to refund then $1200 to get my amplifier back and I also got phone calls from paypal collection office that I owe then $1200. What the hell? I don’t owe any body a penny. Paypal collection office said that I agreed to it in their user agreement, which means I agreed to some body buy my items and then paint them and then see that he don’t like them and then they don’t like them and then I have to refund their money and they keep the amplifier as well!!! Further more, the Paypal gets my own item and they claim it their’s and then further more they want me to buy it back!! Buy my own amplifier back. I don’t see any other reason other than Paypal being big brother. Now I have to attend the phone call from Paypal collection office every day 3 to 4 times a day. Paypal offers no protection for sellers.
For example, I have an American Express card and I have to buy three laptops for my kids, all I have to do is to find 3 laptops with Paypal sellers and then use my American Express card to by them. Next what? American Express lets me do 3 Chargebacks a year without no question asked. All I have to say is that I didn’t get the laptops and guess what, I get my money back. Paypal is the enemy here, I paid hundreds of dollars to paypal in the shape of their fees, to have them rob me like this!! To have them get a hold of my account, to have them take my funds which are not legally theirs. Paypal is not a bank, they are private entity, not a bank, You and your funds are not protected at all, you are on their mercy. Paypal is a horrible company.  Paypal is a Scam and fraud. Please use your judgment when you decide to typing your little bank account numbers, When you decide to sell your $2000 guitar or your $1000 Dell laptop or whatever other widget you are dealing, just remember that all the customer has to say is they didn’t get it, they don’t like it and they get all their money back plus they can keep the item. Paypal Sucks!

Posted in Online Payment • • Top Of Page

41 Public Reviews to “Paypal Offers No Seller Protection Against Chargeback”

Review Posted By Charge Back Scams
Time February 7, 2010 at 11:09 pm

It is a damn shame that people are finding a way to cheat people using paypal now. I to was a victim of this, but didn’t lose as much as you did.

Review Posted By qualitypoint
Time February 13, 2010 at 4:54 pm

India Users can use Xoom for withdrawing money from PayPal to their Local Bank Account

Review Posted By fred
Time February 25, 2010 at 10:47 pm

same with me. it has happened to me twice. now i have a buyer who want my item; wants to return it because they don’t want it no more.

Review Posted By Michael
Time February 26, 2010 at 4:42 pm

Hello , I feel for you man ! That’s why paypal is under a class action Lawsuit by millions of people including me

Review Posted By betty
Time April 24, 2010 at 8:20 am

this has happened to me as well. Paypal only got worse when ebay took them over. I would like to be in on this lawsuit!

Review Posted By zac
Time May 26, 2010 at 8:32 am

yup, sounds like PayPal. I stopped using them a few years back for exactly the same reason. I also stopped using ebay whenthey started forcing you to use PP. there are loads of good alternatives to PP and ebay. i wont list them here cus it will look like spamming. EVERYONE TAKE NOTE – AVOID PAYPAL.

Review Posted By SWAGBUCkS KiD
Time June 14, 2010 at 12:12 am

IDK Waht you people are talking about i recieved about $100 in paypal card for free & a website never stole my money. Well i got my free pay pal cards at swagbucks, swagbucks is just a search engine & all you do is make it you’re default browser & earn points then you can redeem them for prizes like elctronics trus me this site works like i said i recieved ove $100 in pay pal card 7 a wii. Sign up here if interested “”

Review Posted By AL
Time July 16, 2010 at 1:54 am

That happened to us also. Just recently. We are respected seller online and on Ebay and we have years of history online. Including perfect feedback on Ebay. Which in my opinion after all we went through ain’t worth sh.t
We were assured when we started to use paypal as CC processor that there is Seller Protection. Wrong!!
There is none, seller protection doesn’t apply to virtual terminal and Web Payment Pro transaction which actually constitute 100% of credit card transactions that can be accepted through paypal, however paypal doesn’t advertise their “Seller protection” as “doesn’t apply for all CC transactions” they advertise it as “you have to meet certain requirements”. This is my friends false statement from Paypal and simply lie.
We recently been hit by few chargebacks from UK, which supposed to be cover under seller protection, but obviously even that we sent everything on time and on correct address with delivery confirmation, well somehow we are not cover at all. According to Paypal we are responsible for their incompetence in validating CC transactions. Yes!! Seller somehow in their opinion is responsible in case that Paypal failed to properly validate CC transaction and it finished with chargeback because somebody for example used stolen CC. Somehow even that this is what paypal is charging you money for (CC processing and validating and confirming transaction) you are still responsible. Paypal is indeed the greatest scam in the world. I have to admit after few years of dealing with their incompetence and lack of any business ethics: PAYPAL SUCKS!!

Review Posted By GRAND
Time September 5, 2010 at 1:24 am

We are full time online seller on eBay , B2B and B2C marketplaces and have been using PAYPAL for the past 2 years. We cannot agree further that PAYPAL is indeed the worst scammer in the world. You place your trust on them and yet, they betray your trust. Each month, we lost from a few hundreds to a few thousands of dollars with unfair decisions made by PAYPAL. Not only with chargebacks, PAYPAL also refunded payments to buyers so long as the buyer has provided them with a tracking number. It does not matter whether you eventually received the returned item or whether the buyer acted bona fide to return the item they orginally purchased from you. We have already 2 instances this month where PAYPAL refunded the payments to buyers when the item returned by one buyer was not received at all and in another instance, a buyer who is supposed to returned a PC tablet to us, sent us magazines instead. PAYPAL rules is always one sided and pro buyers – SO, NEW SELLERS PLEASE BEWARE.

A few months ago, they even changed the user terms silently without even informing the members. This is an integrity issue. PAYPAL should not expect their members to read their terms each and every day and looks for changes that they have done to be in their or buyers’ favors.

It seems to us that PayPal is hiring a bunch of blind workers who are just following the books blindly. They never have the courtesy to contact us (the seller, who paid for their fees) if they need additional evidence to act in our favor – although in their emails, they would also mention so.

PAYPAL is an organization that pro-buyers. For them, buyer is their “GOD” but they seem to have forgotten who feed their mouths – the SELLERS ARE THE ONE WHO HAVE PAID FOR THEIR FEES!

We are honest sellers and are seriously considering not to use PayPal. On the other hand, to be fair to genuine buyers, we are also considering other third party payment methods which can provide greater comforts and assurance for buyers when shopping online – although we have not found a perfect solution at the moment. Any suggestions are welcome!

We really hope that some organizations can offer a better solution to replace PAYPAL so that this scammer can be eliminated totally from the e-Commerce world one day.

Review Posted By John Ohara
Time September 15, 2010 at 5:10 am

Hi I buy and sell on ebay occasionally. Today I received an email from paypal saying that there was a chargeback on my paypal acct for an item I sold last month. The thing is that the buyer filed a claim throught ebay last month and ebay rouled in my favor(wow!!! ca you imagine a seller can win a claim). anyway paypal put a hold on my acct telling me it might take up to 75 days!!!!! to solve this issue. After reading all these posts regarding Paypal I think I will close my acct. is there anyway we can sue this company.Paypal is a SCAM and I consider it illegal to block my acct for an undetermined period of time.

Review Posted By plunker
Time October 5, 2010 at 9:28 pm

You people realize that you have the addresses that the item was shipped to. Treat them like the theives. Paypal is only covering itself like any company would do.

Review Posted By Tricky life
Time October 18, 2010 at 12:28 pm

I lost my $1600 for doing nothing. I just wanted to withdraw my funds and they told me that it was suspicious!! and they have put a hold on my account for 180 days… Without even a single chargeback…PAYPAL SUCKS…

Review Posted By PayPal Seller
Time November 12, 2010 at 4:49 pm

When I had a Chargeback on my PayPal acct, I sent in all the documentation from the sale of services to PayPal when the customer claimed he never received any service when in fact he did but was not happy with the results. Unfortunately advertising is not guaranteed to produce sales, it’s like fishing sometimes you get fish sometimes you don’t. But the process was smooth and I received my money back from PayPal within a week.

Review Posted By Jerry Preusser
Time November 22, 2010 at 9:26 am

Paypal just lost a ridiculously easy chargeback case for me. $920 ripped off by a guy that used his AMEX card and decided to do a chargeback, stating at first that he didnt use his card and then he said that he didnt receive the machine in the mail. I submitted tracking info, emails where he is talking about the item being at his house. Ridiculous.

Review Posted By shahryar
Time January 7, 2011 at 11:45 pm

it dosen’t matter your customer was verified or dosen’t matter how many proof you send to bloody paypal that your customer got his goods.
just fucking need the fucking customer doing “unauthorized access to his PayPal account” and it means you lost your money and your goods , just bloody paypal already got their commission and laughing to you that how idiot your are becuze using paypal as a merchant.

Review Posted By Jason
Time January 9, 2011 at 11:26 am

Seriously I have had a few issues with Pay-pal and I agree with you.

My favourite incident was when I was travelling overseas and in my own country I would always access it to see how my online sales and E-bay sales were doing. They froze it on me. I called then and advised them that I was travelling overseas and that is why I was accessing it at different points. I even emailed them my flight information and tickets with my ID but still to them it didn’t matter and they froze my account. I couldn’t even except payments. Which in total cost me almost $10k I had to cut my overseas travel to come back home to fix it. Still took 13 more days once coming home and threatening a law suit. I spoke to 23 people in the space of 9 days to have this resolved. Do what I did, if you ever call them get their name and extension and who there supervisor is. Also if you get the supervisor on the phone ask for their information as well.

My second one that I cannot get over is my Uncle. He sells chainsaws on E-bay. He sold this bum a chainsaw for $850 it was a bargain. They are worth $1300 it was brand new. They guy gave positive feedback emails to say how great the chainsaw was. Even a picture of a tree that he cut down with it with a sign that said cheers. He had it for 3 months. Without any warning or notice my uncles Pay-pal account was frozen and a note to say they were investigating a charge back.

My uncle couldn’t believe it. He received the chainsaw back in the mail two days latter. It was scratched the chain was blunt this guys had seriously worked the chainsaw over and now that he had finished cutting the trees down around his property he had no further use for it.

My uncle has sent everything that the guy had emailed him there whole history since he has sold it to him and they are still going to process the charge back. He has no access to his account and the money that is in there that he uses to run his online businesses.

To me Pay-pal need to take a long hard look at themselves. I was taught by my Mum and Dad when growing up that you should never steal from the hand that feeds you. I think Pay-pal need to take a long hard look at themselves before they lose everything. People will only take this for so long and soon it will be to late. Bye Bye Pay-pal.

Review Posted By ere
Time January 26, 2011 at 2:25 pm

this is really useful pls. read

Review Posted By Guy Walker
Time January 26, 2011 at 7:09 pm

This is happening to me. On eBay I sold a guy in Staten Island 4 records. He didn’t like 3. I offered a full refund once the records were returned to me undamaged. The buyer said they didn’t trust me and opened 3 cases in the resolution center. One case, eBay placed pending funds into buyer’s account. The other two the buyer placed a chargeback on. I am now pleading my case. On the telephone a PayPal rep told me it is out of their hands and that the credit card company will be able to have access to my PayPal account if they decide in their card holder’s favor.

Review Posted By Online Seller
Time January 27, 2011 at 2:17 am

A chargeback was filed against us 4 times by 4 people living in the same area: Southern California. It came to almost $11,000 in merchandise and paypal supposedly faught for us and we lost it all. We have signature confirmations, invoices, IP Addresses, phone numbers, and they wont tell us why we lost our money except that its to an unconfirmed address even though the billing and shipping addresses match. Plus they get to charge us an additional $20 each order basically for fighting the case for us. I have emails and the works. What can i do to screw paypal over. Not only have we lost $11,000, we are literally losing our hair out of our heads. Why does paypal accept credit cards that do not match the billing addresses that the credit card companies have. Also even if the security codes do not match paypal can still accept it depending on the credit card issuer. IS there anyone one out there that has an idea on how to take these suckers to court and win. False Advertisement Maybe?

Review Posted By Jay
Time February 26, 2011 at 2:08 pm

Why don’t the consumers, ‘we’ , fight back by listing the email addresses and information of buyers with a history of more than 2 chargebacks? that would help alot if that database was available.

Review Posted By Crystal
Time March 8, 2011 at 9:56 pm

4 years ago a buyer did a chargeback 3 months after receiving the product, at this point I had already had the money withdrawn from my paypal account ($250). I sent paypal the shipping confirmation, signatures and even had positive feedback from the customer about the item. They ruled in the buyers favor and said it was fraud. I never paid them, I opened another account and now 4 years later they’ve put a limitation on my account because they were able to link the account from 4 year ago to the new one. Sure enough, I’ve sold a few items and the money is sitting there from those items and I’m told I can either pay paypal for the money owed on the other account or they will take the funds from my new account.

There is no protection, you make an honest sale, ship the item to the confirmed address, recieve your money and at anytime the customer can do a chargeback and claim fraud or not recieved and you’re screwed! Paypal told me that if a customer uses a credit card to pay, I’m not protected….HOW THE HELL DO I HAVE CONTROL OVER WHETHER THE CUSTOMER USES A CARD OR ACCOUNT ON THEIR PAYPAL ACCOUNT! Ugh! I hate paypal!

Is there a lawsuit going on? Seriously, someone needs to stop them!

Review Posted By scammed
Time March 31, 2011 at 5:05 am

Wish I new that before I made a sale. I just got burned $300. Obviously I will never do that again. Another expensive lesson learned.

Review Posted By AJ
Time April 2, 2011 at 5:25 am

Years ago I was president of a company selling mortgage leads to brokers. We generated leads ourselves, we did live transfers, ours were customers seeking loans.. the real deal.

We decided to try paypal to help reach a larger web audience.

Imagine our excitment when we landed business from a major mortgage firm. They bought thousands of leads , exclusive at $10-20 a piece. We infact could barely fill the orders.

For three months they ordered, we had lunch with several on their board of directors. Then one day we got the news. Chargeback.

All transactions going back three months. We lost tens of thousands of dollars. No reason, no exude.. Their answer to us.. Nothing personal, it’s just business.

Put us out of business. We were a good honest company an thought doing business with a big corp that was respected meant we could tryst them.

Mind you we sold leads, so as time past they went stale and cold. They couldn’t be resold later. There was nothing to return.

Beware beware using paypal or CC in general for service industry.

Review Posted By JM
Time April 8, 2011 at 1:46 am

What should I do? I just experienced the same thing, told me the money was sent, so when paypal says that then I understood it was real money.. I never have an idea about this, before I took part I just made a research on the so called digital online currencies which I assumed legal. This money sent to me was successfully transferred to my bank account, withdrawn it then transferred to another now I’m in negative balance. It’s all completely a kind of cheat! I,m just a mom of four very young precious kids. I even carried along with me my two months old baby in doing this so good to be true thing.. I did my best to call paypal, spent hard earned money for this phone call, and they told me I must notify the sender through email.. what is that? It just don’t make sense with the Paypal protection bla bla, they should be the one to be liable on this, never on me. What should I do?

Review Posted By BKA
Time April 9, 2011 at 6:03 pm

You said you live 3 states away from the person. You have their address. Go throw a fireball in their car, they’ll be out a lot more than $1200. That’s what I’d do if they lived that close!

Who in their right mind would mess with some random person they don’t know that lives that close to them? I’d teach them a lesson, to be honest.

Review Posted By Jay Drake
Time April 21, 2011 at 5:52 pm

As someone who works in high volume internet e-commerce situations for a living I have got to say that the information presented here is incorrect. A credit card chargeback is not concerned with whether or not the item has been returned. It is an action that an individual carries out with their credit card company and once it has happened it is up to the retailer to dispute the chargeback.

The mention of paypal not protecting the seller is accurate, but also carries over to any and all banks/processing agencies. The appropriate action is to contact the credit card company that has filed the chargeback and to present evidence to them that this was wrongful. Handled appropriately, the chargeback will be lost by the buyer and the money will return to you.

A large amount of the call volume in the customer support center at the company I work for are people calling for a refund after noting that their credit card has apparently been charged again after they had settled everything months ago. A little poking around inevitably uncovers that the customer in question did not settle their issue but instead filed a chargeback, which gave them instant satisfaction. However, once the chargeback had been contested the money was once again taken from their account and awarded to us as they were found to be in the wrong. There’s a lot to be learned here both for those who have customers that wrongfully chargeback their purchases and those who choose to skip the proper procedures and go straight to attempting a chargeback, often fraudulently.

Review Posted By Orient
Time May 12, 2011 at 6:58 am

PAYPAL no PROTECT for SELLERS. never forget this reality if you are sell with PAYPAL.
Some buyers using the PAYPAL as a gun for stole our item. I just wonder can we found a email list who make charge-back ?

Review Posted By Rui Vieira
Time May 14, 2011 at 12:00 am

THE TOTAL HISTORY OF A TRYING SCAMER on EBAY with strange situations

ITEM – watch with 1100 dollars sold on ebay

The total history (from my part) is here.

1 – I have send a EXPENSIVE watch from Europe To MExico with TRACK NUMBER RC398141034PT. THe item was PAID day 07/03/2011 by PAYPAL. I send it final of day 9 March. Sold on Ebay

2 – Have take some time (BIG BOX) but after more or less 21 days the item was delivered – 01/04/2011 (i think this is the aproximate day of reception by the system)
Can track information here “”

3 – The client told me receive day 9 (strange). Told me was outside the city and only passing some time will check the item. Told me this 09/04/2011 by email.

4 – When “came home” check the item , and he said is not original (message by EBAY)! This was at 18/04/2011.
For me was a very strange situation. I verified movement and was the correct one. For me is 100% original.
The acurrency of watch was 2sec/day what is excelent for automatic…
But hapears there are replicas also with same movements.
I told If i receive item i refund him. For me there are no reasons for problems if resend back item.
Told to send fast (my idea was never pass the 60 days for a total refund)

5 When I ship to him , He ask me to send item at low value to dont pay taxes and
also told me to dont send the original invoice because in MExico the taxes are very hight (send message inside ebay and outside ebay).
Also before my shipment to him we talked and he receive a photo with what i was going to send.
More one time for him all was OK. BOx there was no problem, documents also no problem, but when receive for him all was incorrect.
This was the FIRST SIGNAL that something was strange and Wrong…More strange was NOT OPEN A CASE.

ALL i have show by photos, now for him is incorrect (also photos by email!!!)
The box was the wrong one (and he already have seen in photos), the card was also the wrong one (but also he have already seen that before)
All very strange…For me one of the problems is the watch is from a client (i buy and sell watches) and if is a fake one is very, very good….
I also had the original Invoice and he did not want it….

6 – To resolve in a easy way the situation (I DONT WANT PROBLEMS) i told him to resend item to me and of course i send a FULL REFOUND (after of course receive back item).
He always talked about refound after send back to me…
To be more fast, i told him to send the watch in a small package because normaly take less time to receive doing that. And then the box.

I ask to send the watch separate for 2 reasons. The first is because normaly is more fast. The second is because the scamers normaly make error send with wrong weight, knowing
we the weight of watch (this aproximate 130,3 grams).

7 – More one time He take a lote of time to send item (like always to pass (i believe) the 60 days).
Was in this moment i understand the scam. I WAS ALREADY ALERTED BY EBAY COMUNITY IN THIS MOMENT.

8 – I pick up and verify item day 11 of May of 2011 (in the end of day). When i opened , i verify what you alert me .SCAM. Inside was 4 bateries AA with bobble plastic.

9 – Today i was in Portuguese post oficce taking pictures of weight of total package (empty) and in separate. I also have a card from a TAG F1 and also take picture of weight
All this to have proves for EBAY and PAYPAL

The total package empty (having one packet bubble inside like i have in photos and he also send to me in photos before shipment ) weight aproximate 56 grams.
The total package like i received. I have also a card equal from a tag f1 and the weight is 6 grams (also in photos). He send me photos indicating the card came with watch…
I have check up the weight today of the TAG HEUER watch with rubber strap in the portuguese representation and the weight is 130,3 grams (i verify and the replica watches he talk about weight aprox. the same or normaly more)…

Can also confirm here
The steel version with catchau strap is 130,3 grams and the titanium version is 98,2 grams


56 grams (the total package empty- i have photos to prove it ) + 6grams (guaranty card) + 130,3 grams (supose watch) = 192,3 grams , and this not talking about the plastics surounding watch he take in photos and send to me and the paper invoice.
With that the value will pass the 200 grams easly…

THE weight indicated in package (total weight) is 165 grams. Can be seen in my photos and in their photos before shipment (he send to me by email).
THATS IMPOSSIBLE SO BIG DIFERENCE. I have take the photos in the CTT Portuguese office. The bateries came envolve in some bubble plastic.
Its AA convencional Alkaline bateries ( i verified in goggle and is always between 23 and 25 grams each always) . And one of the bateries is TOTAL in Spanish!!!!

-> WHAT I RECEIVED ( values aproximated)
96 grams (aproximate 4 AA Alcalin bateries) + 13 grams( paper protection bubble surrounding bateries ) + 56grams(the all packet) = 165 grams ( all this is estimated and aproximated)
But tell and prove my history. I will monday confirm in photos this weght also. But can see easly its aproximate correct… But with the watch IS IMPOSSIBLE…

Now i know this:
– All the time when he told me was outsite city and when explain by email was a fake item, i believe all this was to lose time. He told me be fake item to
create a history…And take time to explain to lose time… And try receive a REFUND without send item. Was always asking…

– He was forcing a REFOUND. Then make pass the time of 45 days and also the 60 days to
be impossible send negative feedback and try have the item with him and then contact PAYPAL to receive back the payment (because of course i will not if dont receive my item).

– I believe the idea was to pass the 60 days all the time for 3 reasons.
First – Because i did not send a refound when he receive item and told was fake (and was always asking by email).
Second – With the pass of 60 days I will be enable of send negative feedback and alert
Third – Now he can contact paypal to try receive a payment (not the refound i will of course not send after receive this).

He never respect any time line of EBAY…The 7 days for resend, the 45 days for a claim and in the end the 60 days to a easy REFUND.

Was the EBAY COMUNITIY Who Alert me.

After this
Whow to protect myself from a CC Charge BACK on paypal ! Is this the idea for the SCAM i believe !!! THe paypal i think dont give protection for credit card charge back. Do you think is better i close my acount ?
Is not fear…
Because if apear a hight value to i pay, knowing me is a scam i dont believe will paid. The paypal will need go to CORT with me… I will protect myself.

Review Posted By jmay
Time June 7, 2011 at 4:20 am

re: Jay Drake

You wrote: “The appropriate action is to contact the credit card company that has filed the chargeback and to present evidence to them that this was wrongful. Handled appropriately, the chargeback will be lost by the buyer and the money will return to you.”

What you fail to realize is that Paypal will not disclose to the seller who the credit card/bank is that claimed the chargeback. Paypal’s policy is that you submit any evidence to Paypal and they supposedly present the evidence on your behalf. I was burned out of $3500 and tried everything I could to dispute it on my own, but they refused to give me any information without a subpoena. The only way to get a subpoena is to file a case with the courts in a lawsuit.

Any sellers reading this who have had or are in the process of having paypal “defend” a chargeback for them will ultimately lose. The Buyer always wins. Paypal doesn’t want to risk their relationship with the credit card companies. They said they were fighting the chargeback for me, then decided to drop the case because they changed their minds (a month later) and decided they wouldn’t win. They give sellera a false sense of hope, but never intend to follow through.

SELLERS WILL NEVER WIN AGAINST A CHARGEBACK WHEN THE SCUMBAG BUYER LIES AND CLAIMS THAT THE ITEM WAS SIGNIFICANTLY NOT AS DESCRIBED. These scumbags know this and no longer claim they didn’t receive the item, now they just say it wasn’t what they bought or was damaged.

Review Posted By Jewkiller
Time June 8, 2011 at 10:04 pm

In answer to Rui Vieira:
I will play the violin for you as you can kiss your watch and money goodbye!
Your first mistake was becoming a seller on eBay.
Your second was agreeing to PayPals Terms of Agreement policy.

Review Posted By Jewkiller
Time June 11, 2011 at 7:36 pm

The review Posted By jmay sums it all up exactly as I cannot find a single person online who PayPal have defended successfully against an unwarranted chargeback. They completely ignored my findings and now expect me to pay for their incompetence. The fees they charge for accepting PayPal as a payment method should go to covering the costs of such chargebacks! They are not a company to be trusted and are in my opinion the similar to the same scum who ripped me off.

Review Posted By Grace S
Time June 28, 2011 at 2:06 am

I just got screwed by Paypal re: chargeback and non-return of merchandise. Surely there’s a class action lawsuit somewhere being filed against them that we can all join.

Review Posted By brianhoe
Time August 31, 2011 at 3:46 pm

Indeed Pay Pal is the worst scammer in the world. I’m a latest victim. Pay Pal refunded my money to the buyer just because the buyer claimed that my product color does not match with the picture color.

I can say, in the world no one product color will 100% match with the picture. This is ridiculous. So, everyone can just claim the product doesn’t match with the picture color, then they can get refund.

Pal Pal, you go to hell.

Review Posted By PayPal Isnt The Problem
Time January 7, 2012 at 10:11 am

PayPal isnt the one conning you. Its Visa & Mastercard themselves. PayPal like any other company attempts to protect themselves from theft and loss. PayPal is playing the Visa & Mastercard game. Visa & Mastercard is the ones really the ones that are the cons. PayPal like any other processing company have to obey the rules set by Visa & Mastercard. Its the buyers who purposely ride the system and know how to get around things.

If you have a merchant account and process visa and mastercard, you’ll find the same exact BS that you encounter with PayPal. If a merchant ships a product out, to a verified credit card address and the cardholder signs for it. Then files a chargeback, the first time he’ll loss the case say for non receipt. If the buyer initiates another chargeback (called prearbitration) depending on how many times the cardholder keeps fighting, your credit card processing company (they are supposed to be on your side, they arent), you as the merchant will be out the money and the product.

Visa & Mastercard are so buyer sided. You see advertisements of comemrcials telling people you have 0% liability against fraud. Their credit card company is not out the money is the merchant. The buyer can make up whatever they want, or make stuff up about you. And its your responsiblity to prove it. 90% of the time the merchant will loose.

Visa & Mastercard set ridculous standards. A merchant is not allowed no more than 1% of their sales to be chargebacks, that 1 chargeback for every 100 transactions. Regardless of whether or not the chargeback has been falsified by the buyer, Visa & Mastercard dont care. Your processor’s risk department will classify you as high risk and hold your funds.

American Express calls the cases down the middle they are fair with all their findings. They charge you a higher discount rate and Visa & Mastercard make you think they are cheaper but they are more expensive than Amex. Visa & Mastercard make up extra fees they can surcharge on you, called non qualified rates, they tak on another 1.3% to 2.0% ontop of the rate you normally are quoted. So if someone has a discount rate say 2.25% for visa mastercard and a buyer uses a corporate card. The merchant gets charged the normal 2.25% + .25 cents (for example) and then gets hit again with another 1.3 to 2% for the onon qualified rate, taking that transaction to nearly doubled what Amex Charges.

Processing company’s like First Data will make every excuse possible for a merchant to loose a chargeback if a buyer keeps disputing an item. They dont care and will make you loss both the product and the item. Even you as the merchant do everything right, get signed proof of delivery and everything else. First Data for example, will make up an excuse for you to loose the money and make the buyer go away.

Here’s another piece of information, when a chargeback is filed, the merchant gets hit with a non refundable fee called a chargeback fee ranging anywhere from $25 to $50. That fee is not refundable, its 100% profit to their processor. Whether you win the case or not, your about that fee. Another fact when you submit all the informationa against the buyer, you think there’s a third party that makes the decision. HELL NO! Get this, its the buyer’s own credit card company that filed that chargeback against you that makes the final decision. And you do you think they are going to side with! You, that arent their customer, or their customer that they are charging 24% interest on their account.

PayPal can be blamed for alot things, and alot of things I hell sure dont agree with them. I dont trust PayPal, but you have to consider, that you pay $10 for a chargeback fee compared to $25 to $50, its quick and painless. But PayPal on the other hand will limit your account and makeup whatever excuse they want to keep it closed. And once an account is limited it stays there. Im not a fan of PayPal, i think they suck but everything everyone is claiming, you have to understand to a small percentage its Visa & Mastercard causing all the problems because they are so buyer sided.

Review Posted By PayPal Isnt The Problem
Time January 7, 2012 at 10:17 am

Another reason why, is the word chargeback as I had mentioned. PayPal cons or tries to trick people into paying with their bank account. If the buyer pays via their bank account, the buyer will immediately loose the claim because the buyer has little option paying with their bank. When the buyer screams chargeback, PayPal immediately sides with the buyer and victimizes the seller. By initiating a chargeback the buyer can take the funds away from PayPal. PayPal then has to answer to Wells Fargo about the chargeback claim. Wells Fargo, last thing I heard was the primiary processor for PayPal. PayPal isnt a credit card company, they arent a processing house, they are a 3rd party company that have their own merchant account, like any merchant that has a credit card terminal and makes profit on the difference between when they charge the seller and what Wells Fargo charges them.

Thats why they keep on forcing you to pay with your bank account, because the 2.9% + .30 a transaction is 100% profit or $.50 a transaction, compared to 2.1% + .20 (they might have lower rates because of the volume – or some deal worked out with WF).

PayPal figures the seller needs us to make a living, the buyer doesnt. Thats why sellers you should never ship a product out until the funds are physically in your bank account, never before. Never leave any money in your paypal account. You dont want to place yourself in a position of out the money and the product.

As far as the other post, in order for a buyer to get a refund for an item, they must prove they did return it in its original condition. Anything that damaged or not yours, you can fight it.

Review Posted By JimS
Time January 9, 2012 at 11:28 pm

Paypal just boinked me. Closed the case in favor of the buyer saying that I did not qualify for Seller Protection. When I read the requirements of Seller Protection, I met every requirement. Paypal is bad, very bad. Stay clear. I am looking for other merchant services and getting out of Paypal ASAP.

We need an Occupy Paypal march. Gather up all the Occupy hippies and send them to Paypal in San Jose, CA

Review Posted By Tricia S
Time January 23, 2012 at 6:07 pm

I was scammed for almost $2000.00!! When i sold my item & the buyer paid thru paypal, A red flag went up on buyers behalf. Paypal held my funds for a week to verify the buyer( which obviously they really didn’t) I even had buyer email me telling me paypal CALLED this buyer to verify payment. After buyer was verified the funds still had to sit for another 21 days! I received payment & transferred it into my own bank account(prior to shipping item out)than a Month later I get an email telling me I had a chargeback filed against me!! How does that happen when paypal verified buyer??? Paypal told me not to worry this person would NOT get away with it. After their investigation buyer got to keep my $2000 item & I am holding a negative balance in paypal! I call them everyday still to c what the situation is! Now alls I get is they can’t help me, but yet they gave the ok to ship item out & now I get screwed!!I will never buy or sell on eBay again!! I am considering a lawyer for this~ paypal should have to pay for all the harm they cause families & businesses! I feel sorry for the honest people that do buy & sell, because u never no when a chargeback will b on your account. I had 3 other people report this scammer & alls paypal would tell them is were watching him!! Well watching & letting him get away with this is totally obserd!!!!! Unfortunately when u call eBay & paypal they use each other~ but one good thing is one representative informed me my chargeback was from American express! So now I will b contacting them. If anyone else has any advice for me on how to retrieve my item back or the money please feel free to let me know! Thank you!!

Review Posted By emoon
Time January 27, 2012 at 2:53 pm

What kind of law enforcement you can contact to force the buyer to return the product. I just want the product back since I already lost the money and don’t want the buyer kept both the item and money. Please help.

Review Posted By Priscila
Time February 22, 2012 at 7:15 pm

I got caught in this SCAM as well. I sold a Halloween Costume and waaay after Halloween they send me the chargeback, now they want me to pay for something I sold! absurd! They get small amounts from people here and there and make tons of money with this scam. I, too, would like to be informed of any class action lawsuit.

Review Posted By John
Time March 22, 2012 at 10:25 pm

I sold tickets to a sporting event between Lakers vs. Clippers for $400. Buyer did a charge back. I now don’t have tickets since event already occurred and now my paypal balance is negative $400.

Review Posted By CHARLES
Time July 26, 2014 at 2:09 pm

I sold a Best Buy gift card. Buyer bought my card and cards from other people. After accepting personal delivery of certified mail, buyer had his bank suck my money and that of other sellers back from Paypal which steals it from out Paypal accounts (A few of us contacted each other). I file seller protection claim with USPS certified mail tracking number proof of delivery, as Paypal representatives made it clear that a physical gift card is definatly a tangible item and qualifies. Paypal refuses to honor the seller protection.

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