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PayPal Unfair To Sellers

By Rachael

A buyer Purchased 5 movie posters from me through ebay. The total (including shipping) came to $585.00. The buyer then paid me through PayPal. I had just started using PayPal for selling. I shipped the posters to the address supplied to me through the PayPal invoice. The buyer confirmed receipt of all of the posters.

Six days later, PayPal sent me a notice saying that they were placing a “temporary” hold on the funds in my account due to a claim of an unauthorized transaction of funds into my account from this particular buyer. I sent them all of the information the requested….all correspondence between myself and the buyer, Registered Mail numbers, Customs ID’s…everything. I heard nothing for weeks.

I called PayPal twice to get updates and was told both times that I do not qualify for their Seller Protection because I A) Shipped to Canada, and B) shipped to an unconfirmed address, meaning that the buyers address on the invoice may not match the address attached to the “financial institute” (as PayPal calls them) the buyer used.

My point to them was, shouldn’t they be responsible for making sure that the addresses match? Shouldn’t it be a requirement for registration that upon registering for an account, any credit card, band account or other “financial institute” that the addresses match? Shouldn’t PayPal be catching this upon registration?

I was told that they “back off”. After registration, it is up to the seller to decide whether they want to continue the transaction. Oh sure, after I’ve already legally contracted myself into an Ebay transaction with this person.

Really this explanation is ridiculous. Buy their reasoning, this would be like a terrorist getting through airport security and if something is to occur, blaming the passengers because A) each passenger didn’t check the terrorist’s passport and X-Ray said terrorist themselves and B) the passenger “chose” to get on the flight in the first place.

I received a notice last week stating that PayPal had completed their investigation and they had decided that refunding the money to the buyer “was the appropriate action to take”. No reason why was ever stated, and they refuse to give me any information regarding to the investigation unless they are subpoenaed by either a court or a government agency.

Early on the buyer had indicated to me that he was running short on funds. Due to particular correspondence I have with this buyer, I really and super strongly believe that this was a case of buyer’s remorse. He spent way too much money and because he could have possibly used a friend’s or even a parent’s credit card, he knew he could get away with this.

So, all in all, this guy has both the posters AND the money, and PayPal has already sent me my first notice that my account balance is negative $585.00.

I have contacted several internet fraud sites as well as my state Attorney General. PayPal is nothing but a sham and they need to be put out of business.

Posted: April 20, 2012 at 7:00 am


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