posted on November 14, 2000 04:09:30 PM new
First, I am not a PayPal cheerleader, but I feel that we should give credit where credit is due. I have been just as ticked off about the lies, deception, double talk, and constantly changing TOS as everyone else has. And, with all of the horror stories posted here and elsewhere on the web about chargebacks, reversals, frozen accounts, etc. I became just as paranoid as everyone else about using this service and I immediately removed all PayPal logos and links from my auctions, though I did not refuse to accept it for the few who asked to use it. As I sell mostly low ticket items and did not feel that the chances of a major fraudster targeting me were very great, my heart just about stopped when I recently received this e-mail from PayPal:
We regret to inform you that you received funds from an account
with reports of fraudulent credit card use.
The transaction under review is: $XX.XX on XX/XX/2000 from XXXX XXXX, [email protected].
You are protected from receiving fraudulent funds by the Seller
Protection Guarantee for up to $5,000 per year as long as the
following conditions are met in accordance with our Terms of Use,
Section IV, Paragraph 3:
a) The seller is Verified;
b) The seller can provide reasonable proof-of-delivery which can
be tracked online. (Most U.S. carrier companies offer this
service, including the U.S. Postal Service.);
c) The seller accepted payment from only one PayPal account for
the purchase. (Multiple payments from different accounts for a
single item are a fraud indicator. Sellers should not accept such
payments.);
d) The seller does not ship internationally
Please reply to this email to let us know if you have met the
above-mentioned conditions concerning this transaction. You will
need to include the applicable tracking numbers concerning
proof-of-delivery in your reply. If you do not have tracking
numbers, you will need to include other reasonable proof of
shipment.
If you have any questions concerning this email, please feel free
to address them in your reply.
Sincerely ,
PayPal Account Review Department
What really bothered me, and still does, about this e-mail was the statement "We regret to inform you that you received funds from an account
with reports of fraudulent credit card use."
It does not say that THIS TRANSACTION was reported as fraudulent....I'm still not quite sure what to make of that. Immediately replied with the tracking information and began holding my breath.
LESS THAN 24 HOURS LATER, I received this e-mail:
Thank you for submitting the information we requested about the
transaction under review. We appreciate your cooperation and
your patience.
I am please to confirm that you are protected for this
transaction under our Seller's Protection Guarantee.
Sincerely,
PayPal Account Review Department
I must again note that this was handled quickly without a hassle, and my account was never locked or restricted. While I still have mixed feelings about PayPal's recent changes, I felt that with so many horror stories being posted to these boards daily I had to share my experience. While I don't know the details of everyone's situation who have posted these horror stories, I am here to tell you that if you follow the rules, you do have at least some protection...which is a lot more than I can say for some of the other payment services out there at the moment.
posted on November 14, 2000 05:10:36 PM new
Glad to hear that PayPal followed its terms of service in this instance; others have not been as fortunate.
I do have a few questions.
Have you tried to "send" a payment to the PayPal account with "reports of fraudulent credit card use" to determine if it remains open? If so, I'd have to wonder where these *reports* are coming from.
How would this situation pan out for a PayPal accountholder who was "unverified"? I'm assuming you are "verifed", but am wondering whether an "unverified" seller would be subjected to a chargeback if they provide the same information you have.
posted on November 14, 2000 08:02:26 PM new
That is good if you can provide all the things they ask. I don't understand what "proof of shipment" has to do with fraudulant credit card use.
I sell very small items usually under $5.00 and in no way can I expect people to pay $1.80 (and soon even more) to insure the package so I would be stuck.
I haven't worried about it, because if something is ever lost in the mail I would just refund the persons money and that would never get to Paypal for action. However, if it is required for protection as you stated I would be out of luck!
posted on November 15, 2000 10:21:48 AM new
What probably happened is that account a, using a stolen CC paid account b. Account b, who is a legitimate user that unknowingly accepted the payment, then paid you. Since account a is probably closed and b is probably empty, Paypal tried to find a way to make you pay. But since you followed their rules, they couldnt do it. Had the person who paid you used a stolen cc or charged it back with their CC company, your account would have been frozen and you wouldnt have gotten any notice. Other people paying you would have had the money taken to repay Paypal's loss. This has already happened numerous times and I'm not just blindly believing what I see on AW, I know some of the victims.
posted on November 19, 2000 08:31:05 PM new
".... if you follow the rules" DON'T ASSUME THAT THOSE HAVING PROBLEMS WITH PAYPAL AREN'T FOLLOWING THE RULES. I HAVE DONE EXACTLY AS THEIR RULES HAVE STATED, AND I CAN'T GET MY MONEY FROM THEM! EVERYONE BEWARE...YOU MIGHT BE THE NEXT VICTIM!
