My local news did a story on a Pay Pal loophole that screws people over [Video]

[Harold Mansfield]

I was glad to see this story, even if it is only on a local station.
I got screwed on this one a while back (You can read my experience in the video's comments) and it is infuriating that buyers are able to do this to businesses and sellers and get away with it. Also that credit card companies are willfully in on the scam of screwing people over. I'm actually angrier at the [Master Card] credit card company and the buyer than I am Pay Pal since they are the co-conspirators in the fraud.

I always sing Pay Pal's praises, but nothing is perfect and this has been screwing the little guy over for years and savvy people who know the law exploit it all of the time.
8 On Your Side: PayPal - Story | LasVegasNow | KLAS-TV (http://www.lasvegasnow.com/news/8-on-your-side-paypal)

[Fulcrum]

Happens often. I saw a story on another forum but it was the seller that did the screwing and had both Ebay and PayPal back the seller (faulty engine).

[billbenson]

As you probably know I had a problem years ago using Paypal as a seller. From posts you made I assumed they had changed their ways.

I think their business model is for inexpensive products. Web hosts and site designers use them a lot. I know you do Harold.

While there is always a risk of a chargeback, if I were in your shoes, I wouldn't use them for anything you can't absorb a loss for. For example, if someone wanted to use Paypal for a 10k website design, I wouldn't do it.

JMO.

[Harold Mansfield]

For example, if someone wanted to use Paypal for a 10k website design, I wouldn't do it.

Hell no. I wouldn't either. Actually I wouldn't even trust a credit card because they are the problem. Everything is decided internally with no outside input or oversight. Rats in charge of the cheese basically. How else are they going to rule? To pay you, or give their clients back their money? They're going to screw you of course because they don't make any money off of you.

The card companies are the accomplices to the fraud here.

It's probably why the whole process is so secretive. If I knew that I had a card drawn on the same bank that decided to screw me I'd cancel my account and tell everyone I know to do the same. Or even if I knew which bank it was, I'd go on a rampage about how they screw small businesses and call them out by name.

This way they can all claim ignorance because you don't know who is financing their customer's theft from you.

[MyITGuy]

I've recently gone through a similar issue and am still fighting with PayPal to figure out where $250 in fees to eBay have disappeared to, after loosing over $200 in shipping to/from the buyer on a false "not as described" claim.

At this point I'm done selling on eBay and am likely done dealing with PayPal to get paid for any items/work.