Forum Moderators: buckworks
Really shady stuff.
Really shady stuff.
I am not sure I understand what you are saying but do you expect them to take the hit for someone else's mistake?
Are you sure that the money did originally come from a fraudulent transaction in the first place.
Is it possible that you buyer received a frudulent payment, withdraw it and then used his own clean funds to pay you?
Sun818 was not directly involved in a fraudulent transaction. He did not deal with the fraudster directly, his buyer unknowingly was. Instead of passing it onto his buyer, PayPal passed onto a person who was totally unconnected with the fraudulent trasaction. I don't think this is good business practice.
Paypal, overall is a great financial service, but they pull some stuff that no credit card company could get away with. As long as you understand these risks, I think they are a great service for micro transactions.
Wlauzon - wait until Paypal dips into your account because Paypal could not recover funds from a fraudulent buyer or seller. Its happened twice with me already. My transaction with the other Paypal member was sound, but he received funds from a fraudulent buyer. Since Paypal could not recover their funds from either party, Paypal comes after me....
Well, we have lost thousands in fraud using non-PP payment methods.
PP would have to dip into our account for some $20,000 to make it worse than breaking even.
I am sure that PP is not perfect, but our experience so far has been FAR better than with the "real" CC merchant services. VISA, MC, and AMEX all have ZERO protection of any sort for merchants. We have been hit by very obviously fraudulent chargebacks on VISA, and even though we provited full proof of delivery and everthing else, it was still not reversed.
[edited by: Wlauzon at 11:36 am (utc) on June 1, 2007]
When something goes wrong with the "professional" card services they just accept it.
We do well into six-figures with Paypal and their protections are as strong if not stronger than the CC companies.
The next time you get the urge to write Paypal off as a cheap and/or amateur payment processor, try upgrading your Webmasterworld account.
This is from their policy revised as of March 8, 2007. Previous versions stated you were protected if you were covered by the Seller Protection Policy (SPP), but that has since been removed. I'm okay with fraud disputes between buyer and seller, but when a non-participant has funds reversed, that is not right. As Wlauzon points out, the financial net effect ends up favoring the merchant even with unethical Paypal behavior.
Payments (Sending, Receiving, and Withdrawals) Policy
Receipt of Payments; Risk of Reversal of Transactions; Collection of Funds you owe PayPal. When you receive a payment through the Service you are not protected against a subsequent reversal of the transaction. If the sender's transaction is reversed for any reason you will owe PayPal for the amount of the reversed transaction plus any fees imposed on PayPal as a result of the reversal. Examples of such a reversal include, but are not limited to, a credit card chargeback by the sender of the payment and a reversal of the transaction because the sender of the payment was using a stolen credit card or unauthorised bank account. PayPal will seek to recover the funds from you by debiting your PayPal balance and, if there are not sufficient funds in your PayPal balance, PayPal reserves the right to collect your debt to PayPal by any other legal means.
The next time you get the urge to write Paypal off as a cheap and/or amateur payment processor, try upgrading your Webmasterworld account.
