excelrye
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posted on January 11, 2004 01:28:06 PM new
I't doesn't matter whether or not you "Transfer", money into your checking account on file with Paypal. Many unfortunatly believe that this protects you in the event of a fradulent case where Paypal can, and will "Freeze the funds in your Paypal account. Paypal can and will "Go Directly" into your checking account on file with them and take the funds from there. Here's a scenario which really did happene to a good friend of mine.
My friend transfered $500.00 into his checking account on file with PayPal. This completely "Exhausted" his funds available in his PayPal account which obviously left him with a "Zero Balance"..nothing nada!
My friend then has a fraulent claim filed gainst him on behalf of some scrupulous customer. the customer did in fact recieve the product which was tracable via a tracking number. PayPal then went directly into his checking account and took the $400.00 from there
In PayPals(TOS) it states that they can infact do the above mentioned. Guess what they did it to my friend, and they have done it others. The best solution to the problem is as follows.
Transfer the money from the checking account you have on file with Paypal to another account in which they can't get thier "Hands", on!
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Dragonmom
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posted on January 11, 2004 01:33:46 PM new
several people here have had that experience and many people have set up checking account specifically and only for paypal.
Is your friend contesting the decision?
When I am an old woman, I shall wear purple
with a red hat that doesn't go, and doesn't suit me.
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Libra63
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posted on January 11, 2004 01:36:31 PM new
This is one reason I have a separate checking account for paypal not connected to my main checking account. I transfer the money to my paypal account, then when it gets into that account I immediately transfer it to my regular account. The two are NOT connected. If there is no money in there then they can't take anything....
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SaffronSpice
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posted on January 11, 2004 01:43:33 PM new
I too have a separate account attached to PayPal for this very reason. I heard enough horror stories about this kind of stuff.
Karl
Hey! If you can't beat them then nuke them!
BOOM
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excelrye
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posted on January 11, 2004 01:53:02 PM new
I'm wondering if they can also charge your credit card...scary. I guess it might be a good idea to have a credit card on file with them with a low maximium spending limit say $300.00. I'm also guessing it would be easier to contest the charges in a scenario like my friends. My friends been playing "hardball", for two months and still nothing...nada. He doesn't think he's ever going to see the money again, and plans on Writing it off...what a bunch of crap..huh!
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agitprop
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posted on January 11, 2004 02:04:13 PM new
excelrye,
Tell your friend to file a Mail Fraud Complaint with the USPS Inspectors submitting copies of all shipping, payment and email details. Remember to mention that PayPal facilitated the mail fraud 
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SaffronSpice
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posted on January 11, 2004 02:59:38 PM new
Filing a mail fraud complaint could be interesting. I would certainly like to know how that turns out. Might be an "in" on getting PayPal to knock off some of their supposed business practices.
My CC on file with them is a low buck one too, just in case. God knows I don't need a big buck nightmare courtesy of PayPal.
Hey! If you can't beat them then nuke them!
BOOM
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stopwhining
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posted on January 11, 2004 03:19:47 PM new
usps fraud team only investigates mail fraud,not financial transactions conducted on your behalf by your pimp.
if you think paypal is not living up to its seller protection,complain to the state attorney office would be more effective.
i believe anyone who open a paypal account after a certain date all have to agree to allow paypal to access their bank account.
for 400 dollars,does your friend have signature receipt besides the dc??you need signature receipt as well for items over 250??or is it 200??
cleaning out your bank account would not work if you want to continue using paypal,as paypal will debit your paypal account for a debit of 400,any incoming payments will be netted against it.
unless you just dont want to use paypal anymore,then you just let your paypal account sit with that deficit.
-sig file -------the lobster in the boiling pot of water who tries to prevent the others from climbing out.
[ edited by stopwhining on Jan 11, 2004 03:25 PM ]
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yisgood
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posted on January 11, 2004 05:29:56 PM new
It's too bad your friend waited so long. You can stop an electronic bank draft just like a check. Go to the bank and file an affidavit. But you only have a limited amount of time. Your friend should also speak to his bank because he may be able to file a bank fraud complaint against paypal with the banking commission. He might want to pay something like $35 for a Jacoby & Meyers consultation to see if he had any other recourse.
http://www.ccs-digital.com
[email protected]
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stopwhining
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posted on January 11, 2004 05:37:36 PM new
the question you want to ask yourself is-do you still want to use paypal??
-sig file -------the lobster in the boiling pot of water who tries to prevent the others from climbing out.
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neroter12
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posted on January 11, 2004 05:40:21 PM new
I didnt think Paypal was regulated by the Banking Commission?
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ebayauctionguy
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posted on January 11, 2004 05:41:27 PM new
I think I'm eventually going to stop accepting Paypal and only accept Western Union's Bidpay. I don't think I will lose many customers because I plan to subtract the Bidpay fee from the total due and so it will be free for the customer. Bidpay's fees will cost me a bit more than Paypal's fees, but the peace of mind will be worth it.
When scammers learn how easy it is to scam sellers through Paypal, it's going to get really bad.
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yisgood
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posted on January 11, 2004 05:50:59 PM new
Paypal is not regulated by anybody (yet) but any transaction that uses the banking system is subject to oversight by the Banking Commission. If they electronically debit your bank account without proper cause, you can file a complaint.
http://www.ccs-digital.com
[email protected]
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stopwhining
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posted on January 11, 2004 05:54:38 PM new
why dont you ask your FRIEND to explain the situation in more details??
if he can complete a 400 dollars transaction,he must be able to explain when did he sign the paypal agreemnt,did he notice that in the agreement he has allowed paypal to access his bank account?
it works both ways,if paypal can credit his bank account,so can paypal debit his bank account,thats the way it works with merhcant account provider.
second-did he have signature receipt of the buyer besides the electronic dc??
how did the buyer complain to paypal-within 30 days or going thru his cc company and file a chargeback??
if he tells his cc issuer it is a fraudulent use of his credit card,paypal seller protection would not protect the seller.
did your friend take out insurance?it is hard to imagine shipping a 400 dollars item with just a dc??especially when payment is made via paypal.
-sig file -------the lobster in the boiling pot of water who tries to prevent the others from climbing out.
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stonecold613
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posted on January 11, 2004 08:44:16 PM new
Have your friend get ahold of their bank and have them put a stop on all outgoing electronic transfers. That way, PayPal cannot go in and steal your money.
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minniestuff
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posted on January 12, 2004 03:16:20 AM new
A couple of years ago, I had an auction for a high ticket item ($1,200) won by someone in Indonesia. They added $300 for me to ship next day USPS. It smelled of identify theft. I never sent the item. I called Paypal and asked them to verify the transaction with the credit card company. It took Paypal 5 weeks to get around to doing this. They finally debited my Paypal account stating "fraudulent use of credit card" and the tone of the emails from them were condescending, telling me I was part of an investigation by receiving unauthorized funds. I almost felt that Paypal was accusing ME of something when I had asked them 5 weeks earlier to investigate!
[ edited by minniestuff on Jan 12, 2004 03:18 AM ]
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