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Rant of the day "PayPal Reversal"

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Well it finally happened to me, The dreaded Paypal reversal

I sold a domain on ebay over 62 days ago and yesterday I received a notice that the buyer reported they did not authorize the payment, Needless to say I freaked it was for 250.00 so my paypal account was deducted. They said they were going to investigate and I should send all documentation surrounding the "Virtual Sale" I immediately sent paypal investigators a copy of all email correspondence, a copy of the updated whois after it was pushed ( I usually do that after each sale as proof ) and I always keep a copy. As well I supplied them with all IP's captured during all transactional proceedures.

After supplying them with all this information they decided on the case it was a virtual sale and the money was refunded to the buyer and I am still out the domain. BULLSH*T i say..... Long distance phone call time I just got off the phone with 3 Paypal reps, the 1st one was the phone slug, I didnt even let him get Hello out of his mouth before I said to him I want to speak to your Boss/Supervisor...But cant I help you he said....Nope get your Boss.....tic toc tic toc 20 minutes goes by His Team Leader gets on the phone I state my case to him....He states that Virtual Items are not covered blah blah blah.... Not what I wanted to hear so after a few minutes of Cussin him out and ripping him a new one......Guess what.... Get me your Boss....tic toc tic toc 20 more minutes Now I get some Girl....She actually sounded kinda hot..... I state the facts to her and now after being online I now have even more evidence cause I went into the computer that had sent me the payment via open ports and I downloaded its cache and history...I let her know that this box was online during the time of this transaction....She didnt want to hear this..... After a little small talk with her she stated to me that she would authorize the full amount be placed back into my paypal account. The buyer would also get the money back....But it leaves me to wonder as it was stated to me after I made some ridiculous intentions of going into my paypal account and reversing all my previous transactions with registrars that I could possibly do this and not only get my money back but keep the domains....Her answer was YES they are not protected....

Now I know when i started speaking with her that I was very annoyed at this situation, I asked Paypal to provide me with my product back....Thats when she said she would make the adjustment.

So I ask you all are we really ever protected buying and selling domains using Paypal..... Are registrars protected....Obviously they are not.... From now on i will not sell any virtual items on EBAY unless a Cashiers check is sent to me because there is huge loopholes in the PayPal system..

Oh by the way If im ever in Omaha Nebraska I think I have a dinner date with this hot sounding supervisor.... Wonder what the wife will say about that....

Ok Im almost done Gimme a break Im still pissed that this kinda stuff can happen 62 days after you have made a legal sale....What is the difference between a virtual item I buy from any registrar (domain) and a pair of socks...In paypals eyes its a matter of a physical item being shipped to your address, even if its just a piece of paper with a password she indicated... But other than that you have no defence.

I probably shouldnt be writing this information cause I know someone is going to try this against a registrar and get their money back...But the system needs to be fixed....

OK Im done.
 
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well if the whois is in his name and address. give him a visit :)
 
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I think PayPal has a protection thingy that costs ya a bit more, but I'm not 100% it applies to virtual sales. Just a thought.
 
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umm last time I checked, if it is a virtual sell, the person who received the money gets to KEEP the money...
Paypal does not allow chargebacks on virtual goods, because it is hard to prove it.
You should tell paypal that and they should of given you the money not him!
 
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csmaster2005 said:
umm last time I checked, if it is a virtual sell, the person who received the money gets to KEEP the money...
Paypal does not allow chargebacks on virtual goods, because it is hard to prove it.
You should tell paypal that and they should of given you the money not him!

This is correct. It is the buyer that is less protected actually.
 
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csmaster2005 said:
umm last time I checked, if it is a virtual sell, the person who received the money gets to KEEP the money...
Paypal does not allow chargebacks on virtual goods, because it is hard to prove it.
You should tell paypal that and they should of given you the money not him!
definitely true that it is hard to track virtual goods
 
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I had over $550 taken from me from paypal on a 45+ day old website sale. They can and WILL take it from you and never give it back. You won't qualify for seller protection if you sell domains / websites, so be very careful on your big purchases - you could get hosed big time!

It may be true that the buyer gets no protection, however if that buyer committed fraud according to one of HIS buyers, Paypal will freeze his account and yank back in any funds that he sent out using those 'fraudulent funds'.

The thing is, I have never heard of anyone getting their funds back in this event, and I've heard of this happening a lot. either the people claiming fraud are almost always getting their $ back, or even if they're found in the wrong, paypal is still not giving those funds back to those who had them yanked from their accts.

Lesson here being, never do high dollar transactions via paypal, and never keep more than $100 or so in your account.
 
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csmaster2005 said:
umm last time I checked, if it is a virtual sell, the person who received the money gets to KEEP the money...
Paypal does not allow chargebacks on virtual goods, because it is hard to prove it.
You should tell paypal that and they should of given you the money not him!

not if the person contacts their credit card company and does a charge back that way, then of course paypal will try and get the money back from the person that received it for the sale
 
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It wasnt a credit card purchase, it was an instant payment. I believe I was given what she called a one time credit to cover costs for the transaction as my account was always in excellent standing and there has never been any issues in the past.

But what really burns my ass is that this person ordered and received the goods had the goods in thier possesion for 61 days and filed compliant, then they for whatever reason were given their money back. All due to the fact that it was a sale of a "Virtual Item" And this is the part that bothers me all virtual sales can and will be deducted from your account if the buyer claims that their account was fraudulently used. No if's and's or but's.

Thats Crap
 
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forona said:
Lesson here being, never do high dollar transactions via paypal, and never keep more than $100 or so in your account.

Can't they take the money back anyway from your credit card or bank account linked to your paypal account- if you don't have enough funds to cover what they are taking back?

Also,Would using some kind of escrow service resolve this for at least high-dollar sales?

Just wondering, as I am quite scared now...... D-:
 
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vwblubug said:
Can't they take the money back anyway from your credit card or bank account linked to your paypal account- if you don't have enough funds to cover what they are taking back?

Also,Would using some kind of escrow service resolve this for at least high-dollar sales?

Just wondering, as I am quite scared now...... D-:

they probably would! I don't know for sure.. actually at the time that it happened to me I had about 300 in there so suddenly i was -250. I has a 1200+ sale right after so it all went back posive, so I was never lucky enough to find out how far they would have gone to get my $.

The one thing that's for sure is that if you're in THIS business of domains, websites, etc. Paypal is not on your side at all and they will surely not spend time investigating anything for you.
 
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Sounds like Yahoo's PayDirect and iKobo payment services might be due for a try...
 
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I've used paydirect before for yahoo auctions (trading cards). I've never had a problem with them. But I don't know how domain-seller-friendly they are.
 
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I very rarely keep more then $200 in my paypal account at anytime for fear of losing a large sum of money to some pesky refund from months ago. Paypal really needs to get their freaking act together and provide some viable protection for both sellers and buyers.
 
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Thanks for sharing all your stories guys, I learned a thing or two about selling domains and such using PayPal. :)
 
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Wow..hope that never hapens to me...i almost went threw this one, except a little different, i was the buyer, but i was buying something for my friend..and he was going to give me the money two days later..and yea, i always pay like, 5 min after buying..so i was a bit scared
 
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