Attention Sellers: Be Careful when using PayPal in the Classifieds

[Henry]

A buyer can chargeback with a PayPal payment. Let's say you are selling a $5000 gaming rig. The buyer sends you money, and you send him the rig. A week later, he can get a chargeback for the payment, and end up getting the rig for free.

Tips:

1. Trade with Paypal for items $50 or less (with trusted members with at least 500 posts, 500 posts alone doesn't make them trustworthy, same goes for #2)
2. When trading expensive items with Paypal, ONLY trade with extremely trusted members, with 750+ posts.

3. Only deal with verified PayPal accounts.

BUT, if you have all the proof you need (tracking number and other ways to prove they legitimately received it, like making them sign for delivery) to avoid a successful chargeback on you, then you're fine, but still, be careful.

"The following types of information can increase the chances of a chargeback dispute being ruled in favor of the seller:

• Proof of delivery, such as online tracking numbers.
• Copies of the original item description or auction description, including any photos.
• Proof that the buyer was already refunded.
• Proof that the buyer was provided with a replacement product.
• Correspondence with the buyer or feedback from the buyer.
• Any agreements signed or accepted by the buyer at time of purchase.
• Any return policy that was communicated to the buyer." - https://www.paypal.com/za/webapps/mpp/security/sell-chargebackfaq

[TheGamingBarrel]

A buyer can easily chargeback with a PayPal payment. Let's say you are selling a $5000 gaming rig. The buyer sends you money, and you send him the rig. A week later, he can get a chargeback for the payment, and end up getting the rig for free.

Try using MoneyPak instead. Once you receive MoneyPak from a buyer, you can use it to fill up your PayPal account, and best of all, you can't chargeback with MoneyPak.

Or try only using PayPal for items $50 or less, or trade with trusted forum members.

I feel this is true especially

[Snickerzz]

Yes, and then sue the twat

[Osmium]

 I feel like nobody around here would do that but then again I woulden't risk it. Thanks for the heads up.

[X1XNobleX1X]

A buyer can easily chargeback with a PayPay.

What stops someone from using chargeback on everything they purchase on Paypal? Say, selling something on Ebay?

[addbot]

A buyer can easily chargeback with a PayPal payment. Let's say you are selling a $5000 gaming rig. The buyer sends you money, and you send him the rig. A week later, he can get a chargeback for the payment, and end up getting the rig for free.

Try using MoneyPak instead. Once you receive MoneyPak from a buyer, you can use it to fill up your PayPal account, and best of all, you can't chargeback with MoneyPak.

Or try only using PayPal for items $50 or less, or trade with trusted forum members.

there are diff payment methods in PP if you know w/c one to use you won't run into problems.

[DyGr00339]

USE BITCOIN

 

​But seriously, it is much better

[BloodySinner]

A buyer can easily chargeback with a PayPal payment. Let's say you are selling a $5000 gaming rig. The buyer sends you money, and you send him the rig. A week later, he can get a chargeback for the payment, and end up getting the rig for free.

Try using MoneyPak instead. Once you receive MoneyPak from a buyer, you can use it to fill up your PayPal account, and best of all, you can't chargeback with MoneyPak.

Or try only using PayPal for items $50 or less, or trade with trusted forum members.

 

In this instance, doesn't the buyer have to prove that he/she did not receive the item or that the item is defective before having the funds returned?

[BlackCrowSA]

FYI https://www.paypal.com/za/webapps/mpp/security/sell-chargebackfaq

[Oshino Shinobu]

What stop someone from using chargeback on everything they purchase on Paypal?

Say selling something on Ebay?

PayPal is much more secure on eBay.

 

You don't need to be too worried about using PayPal if you know what you're doing. They're pretty good with dealing with people that reverse payments, and you can use stuff from PayPal as evidence in court when you go after whoever scammed you. PayPal will even sometimes just give you the money that was reversed if it's a small amount. 

[BlackCrowSA]

What information can a seller provide to increase the chances of winning a chargeback dispute?

The following types of information can increase the chances of a chargeback dispute being ruled in favor of the seller:

• Proof of delivery, such as online tracking numbers.

Copies of the original item description or auction description, including any photos.

Proof that the buyer was already refunded.

Proof that the buyer was provided with a replacement product.

Correspondence with the buyer or feedback from the buyer.

Any agreements signed or accepted by the buyer at time of purchase.

Any return policy that was communicated to the buyer.

[Osmium]

USE BITCOIN

 

​But seriously, it is much better

 

You know that actually makes sense...

[JordanMac]

You do realise its not just a "give me my money back button" right? you have to file a claim where both parties are allowed and encouraged to put forward evidence for review. simply sending using a signed for/tracked delivery service means this circumstance would never happen.

[Lays]

You know that actually makes sense...

 

 

How..  it'd be easier to scam that way.   You can just receive payment and not ship it lol

[SirRoderick]

I would not BUY a 5000 dollar anything if I couldn't chargeback if it went wrong to be honest.

[DyGr00339]

How..  it'd be easier to scam that way.   You can just receive payment and not ship it lol

And that is diffrent with paypal? Or bank transfer?

[Osmium]

How..  it'd be easier to scam that way.   You can just receive payment and not ship it lol

 

Society is built on trust. If you can't be trusted you have no place in society.

[addbot]

You do realise its not just a "give me my money back button" right? you have to file a claim where both parties are allowed and encouraged to put forward evidence for review. simply sending using a signed for/tracked delivery service means this circumstance would never happen.

yup, buyer needs to file a PP dispute. And PROVE that they didn't receive the item or that the item they receive is defective ...

[Lays]

And that is diffrent with paypal? Or bank transfer?

 

You can't get your bitcoins back if something goes wrong.  WIth paypal you can file a claim with legitimate proof and fix whatever issue there is 99% of the time.

[Henry]

You know that actually makes sense...

I would use Bitcoin only when it becomes stable again.

[Henry]

You can't get your bitcoins back if something goes wrong.  WIth paypal you can file a claim with legitimate proof and fix whatever issue there is 99% of the time.

It's not as easy as you think. I've lost $40+ because of chargebacks, and Riot loses money all the time because of chargebacks when people by RP cards with PayPal.

Oh and my friend has had his PayPal account with like $16 locked a month or so, and he could never contact PayPal.

EDIT: Nvm, it is easy if its not a virtual purchase.

[LapX]

Yes, and then sue the twat

I'm sure it'll cost you more than the price of the rig...

[Osmium]

I would use Bitcoin only when it becomes stable again.

The idea is the buyer exchanges to bitcoin whatever the amount is and the seller converts it back right then and there. No money lost.

[Lays]

It's not as easy as you think. I've lost $40+ because of chargebacks, and Riot loses money all the time because of chargebacks when people by RP cards with PayPal.

Oh and my friend has had his PayPal account with like $16 locked a month or so, and he could never contact PayPal.

 

 

These aren't online goods, you can legitimately prove they received it, via the post office tracking numbers, making them sign for delivery. 

[Henry]

The idea is the buyer exchanges to bitcoin whatever the amount is and the seller converts it back right then and there. No money lost.

It takes time to exchange it, unless you use an instant exchange place such as Coinbase. Mtgox or even BTC-E wouldn't be a good choice since they have very large withdrawal fees (Minimum $500 withdrawal with Paypal with a 7% fee for BTC-E)