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