A PayPal Saga

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Daniel Gibson
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Re: A PayPal Saga

Post by Daniel Gibson »

My #1 rule with PayPal is to get the money transferred out of their account as soon as possible. They cannot latch onto it immediately that way, and if they try to charge your credit card you have on file, well let’s just say it is a lot easier to dispute a credit card transaction than it is a PayPal transaction…in my opinion. Also, put a card with a relatively low limit on the account.

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Raphael
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Re: A PayPal Saga

Post by Raphael »

That sort of stuff might work on a one-off basis, but not for maintaining an ongoing relationship. PayPal, for all it’s faults, is a necessary evil in the e-commerce world.

Raphael

Daniel Gibson
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Re: A PayPal Saga

Post by Daniel Gibson »

I am not sure what you mean. There is no advantage to leaving large sums in PayPal. None. Put it where it can do you some good. We use PayPal all the time….they get their share from us. Just don’t let yourself be put in a bind with a large sum.

52089
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Re: A PayPal Saga

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Daniel Gibson wrote: Fri Jul 02, 2021 11:35 am My #1 rule with PayPal is to get the money transferred out of their account as soon as possible. They cannot latch onto it immediately that way, and if they try to charge your credit card you have on file, well let’s just say it is a lot easier to dispute a credit card transaction than it is a PayPal transaction…in my opinion. Also, put a card with a relatively low limit on the account.
Paypal "solved" that problem (in their favor) a while back by making your account go negative if there are any disputes. You can't pay anything from your account or transfer anything out of your account until you go positive again. It essentially freezes your account until the dispute is resolved.

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Raphael
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Re: A PayPal Saga

Post by Raphael »

Daniel Gibson wrote: Fri Jul 02, 2021 4:03 pm I am not sure what you mean. There is no advantage to leaving large sums in PayPal. None. Put it where it can do you some good. We use PayPal all the time….they get their share from us. Just don’t let yourself be put in a bind with a large sum.
Whether or not money is left on account with PayPal (which btw I never do), if they rule against you, you have to pay back the refund. Having not enough funds in a bank account, or sufficient credit card limit, does not relieve you of the payback. Your account would be suspended pending further actions by PayPal.

Raphael

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Raphael
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Re: A PayPal Saga

Post by Raphael »

52089 wrote: Fri Jul 02, 2021 5:36 pm
Daniel Gibson wrote: Fri Jul 02, 2021 11:35 am My #1 rule with PayPal is to get the money transferred out of their account as soon as possible. They cannot latch onto it immediately that way, and if they try to charge your credit card you have on file, well let’s just say it is a lot easier to dispute a credit card transaction than it is a PayPal transaction…in my opinion. Also, put a card with a relatively low limit on the account.
Paypal "solved" that problem (in their favor) a while back by making your account go negative if there are any disputes. You can't pay anything from your account or transfer anything out of your account until you go positive again. It essentially freezes your account until the dispute is resolved.
Not necessarily true any longer. If an account has a "Funds Now" rating, PayPal does not freeze the amount in dispute. In this instance, they have only advised me to have $5500 ready if and when the item is satisfactorily returned.

Raphael

52089
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Re: A PayPal Saga

Post by 52089 »

Raphael wrote: Fri Jul 02, 2021 9:34 pm
52089 wrote: Fri Jul 02, 2021 5:36 pm
Daniel Gibson wrote: Fri Jul 02, 2021 11:35 am My #1 rule with PayPal is to get the money transferred out of their account as soon as possible. They cannot latch onto it immediately that way, and if they try to charge your credit card you have on file, well let’s just say it is a lot easier to dispute a credit card transaction than it is a PayPal transaction…in my opinion. Also, put a card with a relatively low limit on the account.
Paypal "solved" that problem (in their favor) a while back by making your account go negative if there are any disputes. You can't pay anything from your account or transfer anything out of your account until you go positive again. It essentially freezes your account until the dispute is resolved.
Not necessarily true any longer. If an account has a "Funds Now" rating, PayPal does not freeze the amount in dispute. In this instance, they have only advised me to have $5500 ready if and when the item is satisfactorily returned.

Raphael
Good to know. Thanks for the update. My account got "frozen" twice last year and it was a huge pain. With managed payments, this will be pretty infrequent anyway.

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Raphael
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Re: A PayPal Saga

Post by Raphael »

UPDATE: The buyer never responded and did not return the watch. PayPal closed the case in my favor with this caveat:

"Please know your buyer may have additional means to dispute this transaction by going directly through the funding source they used, such as filing a chargeback with their credit card."

I have no doubt that Phase II, the chargeback, will begin soon, at which time I will again update this post.

Raphael


 

cmshapiro
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Re: A PayPal Saga

Post by cmshapiro »

Raphael wrote: Sat Jul 03, 2021 8:26 am UPDATE: The buyer never responded and did not return the watch. PayPal closed the case in my favor with this caveat:

"Please know your buyer may have additional means to dispute this transaction by going directly through the funding source they used, such as filing a chargeback with their credit card."

I have no doubt that Phase II, the chargeback, will begin soon, at which time I will again update this post.

Raphael


 
Yea at that point is where you close your PayPal account, use square, and let that chargeback be PayPal’s problem. The issue is PayPal has setup as a middle man that assumes zero risk, they use their power to pass several layers of risk into you. Not a fair system, I would refuse to play.

When the chargeback comes, PayPal does what to dispute it? No way of knowing and chances are they do not care nor can defend the situation as well as you can. So now you have a likely disinterested middle man in the dispute that is REALLY a dispute or Credit Card Co. vs. PayPal. However, I am sure that in their pages and pages of legalize you agree to yearly, you likely allow them to pass on that chargeback to you, you hold all of the risk.

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Raphael
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Re: A PayPal Saga

Post by Raphael »

Having used PayPal for over 20 years and currently every day of the week, closing the account is not a viable option, one akin to not wearing shoes again because the last pair fit poorly. I have no doubt that I will prevail in this particular situation, its just a matter of staying on top of it and not allowing the buyer to fleece me.

Raphael

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