PayPal seller protection plan doesn’t protect

I have a few times that I either lost money with Paypal and their Seller Protection Plan did not protect me:

1. Buyer was a fraudster, paid by paypal, asked me to send by fastest service, then initiated a payment reverse at paypal. I lost the goods and the shipping cost. Called paypal, they said they could do nothing and suggest me to be more careful in choosing buyer.

2. Foreign buyer was just very impatient. He paid by paypal, opted for surface mail shipment, didn’t receive the goods within 45 days (which I warned him that it could take up to 2 months. He filed a claim and paypal refunded all my money to him, even though I have post office receipts showing that I have posted to the buyer and email correspondence to show that buyer opted for the slow surface mail, which shouldn’t have arrive anyway when the claim was filed. Good thing that buyer eventually received in 2 months and was honest and paid me back. Or else, buyer could have walked away with both cash and goods. Lesson learned, never ship by surface.

3. Not sure if buyer was fraudster or not. He paid by paypal, declined to pay for insurance. I shipped by tracked service. Buyer filed a claim after receiving the goods, filing under ” goods not in accordance with description” which the actual problem he noted on the comment was more that the parcel arrived with box damaged and the content was lost. Paypal went from dispute, claim and refunded him my money all within 24 hours, despite I have tracking number to prove that I shipped. I am still not sure if the buyer lied or if the parcel really arrived damage. Paypal said the Protection Plan does not cover the buyer as it is a postal issue and they will refund buyer no matter whether they decline insurance or not. But in any case, I lost my money and ended up insuring the buyer unknowingly because of paypal. Or worst so, if the buyer was fraudster and just damage the box himself to defraud me, he could have already walked away with both money and goods. Lesson learned, never ship anything without customer paying for full insurance. I have lost a few hundreds on this one.

In most case, paypal will just side with buyer when there is a claim. What a shame since it is us sellers that pay all the fees.

Posted: December 15, 2014 at 5:44 pm


3 Responses to PayPal seller protection plan doesn’t protect

  1. Mike says:

    First and foremost….NEVER ship overseas without insurance and stop catering to buyers that ask for things like slow shipping…it is 100% a trap. I fought PayPal for over 2 months and finally won after doing their BS “affidavit” and filing a police report in both my own and the buyer’s jurisdiction. I hammered them day and night with phone calls asking if they had any experts on the product I sold that supposedly wasn’t as advertised…and the customer sent back a knock-off that obviously wasn’t even the same product. Having filed a criminal complaint in the buyer’s jurisdiction was what put it over the edge. I also went to the local media who has an “on your side” type feature/service…and the local news channel called PayPal on my behalf…and they caved in. Last but not least…file a small claims case and subpoena the rep from PayPal (got to get their employee ID #) or their supervisor. So they ruin their day and pay for a trip out to your area to sit all day in court. Even if you lose…they also lose. Be mean…be nasty….get the police dept involved…get the media involved.

  2. ken says:

    Hi i had the same thing happen a few years ago, he was a nigerian he collected a laptop i was selling paid by paypal the night before and then cancelled the payment, when he collected the laptop he ran off down the street with it, i realised what had happened i took the money out, paypal took it back, then my bank took it off paypal, they then resorted to bailiffs to get the money back they got some of it but not all, dont trust these bastards you are not protected in anyway by the cunts.

  3. dustin says:

    I had a buyer purchase 2 sound bars in 2 orders totaling about $750. after i shipped them he demanded I don’t ship the or he would give me bad feedback and file CHARGEBACKS. I informed him I already shipped them. Anyway. He filed 2 chargebacks and claimed the items were not as described. Both items were brand new in manuact. box and the listing was a copy of the manufact. descriptions.

    Paypal took the money out of my paypal account and gave it back to him.

    90 Days later after I’d filed disputes I WON both cases with the buyers credit card companies and got my money back.

    It did suck but paypal did fight for me with his credit card companies and against him.
    Paypal policy sucks but they did eventually get it right after months of getting threatened with collections notices due to the negative balance on my paypal account

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