Paypal Reversal!!!!

[Debtfreewannabe]

Can anyone please help!!!!

 

A few weeks ago i sold a PS3 on ebay for £435. the buyer did a buy it now payment and paid immediatly

 

I transfered the funds to my bank account and sent the PS3 special delievery the next day

 

The Item was delievered next day and all was well

 

I am a verified seller, However the buyer was not verified and did not have a confirmed adress however he had a 100% feedback on ebay and over 90 transactions

 

Today ebay refunded the entire payment without consulting me leaving me with a negative balance of -£435 on my account.

 

I rung paypal telling them the items have been delivered and i have proof but they were not interested. so now im a PS3 down and owe paypal £435.

 

i have told them im not going to pay as it was unfair.

 

Someone please advise me what to do as they said there gunna pass it to a debt collection agency next month.

 

I have cancelled my bank card and direct debit for them because i know the snakes will try and claim it through that.

 

ANY IDEAS? what can i do?

 

Many Thanks

[CAGisforME]

Firstly it's important to establish why the payment was reversed.

 

If it was the recipient doing a claim for non-receipt you would have had a "Item not received" claim active on your paypal account and would have had the opportunity to respond with the Tracking Details of the delivery in order to establish you sent the item and it was received.

 

If this is not the case then the recipient may have asked their Credit Card issuers to do a "chargeback" for some reason and therefore it's worth trying to contact the buyer.

 

What seems more likely is that you have fallen victim to a [problem], whereby someone has got the log-in details of an ebay account and the attached paypal account (ie a "hijacked" account) and therefore the REAL owner of the paypal account has noticed a rogue transaction on their card and quite legitimately reversed the transaction on the basis that they did not authorise it.

 

This is why it's important when accepting payment by Paypal to protect yourself and ensure that you are sending to a confirmed address (ask yourself why anyone would NOT want to confirm a legitimate address after so many ebay transactions, supposedly with no problems) and also ensure that the item is sent by a means that is trackable online and that complies with the Seller Protection Policy.

 

If you sell something and receive a paypal payment that is marked as "not eligible" for Seller Protection it's not wise to continue with it for such a large sum, and an alternative payment method should be asked for, such as Bank Transfer, Cheque or Postal Order.

 

I think it's time to ask paypal under what circumstances this money was reversed.

 

Unfortunately they WILL send the debt collectors after you for the money and when they do it would be wise to consult those members who give excellent advice in the Debt forum.

 

Good Luck.

[CAGisforME]

I should have also told you..

 

When Paypal receive a "chargeback" request from a Credit Card Company they are bound by law to return the money to the CC Company. Whether they are then obliged to take the money from you is the subject of many "discussions" on the Payment and Postage Community Board forum, somewhere it might be wise for you to visit.

 

Have you tried contacting the buyer and asking what is going on? It MAY be that they know nothing about it, or that they reversed the payment in error. Either way I don't think there is any harm in trying to establish from them what has happened.

 

This way you could find out if the account was hijacked.

[Debtfreewannabe]

hi thanks for the replies. they said it was due recent unauthorised account activity claim.

 

Surely the credit card companys have thier own insurance. most offer internet fraud protection

[CAGisforME]

So, either the ebay account or the paypal account or both were subject to fraud.

 

The credit card holder has claimed on their internet fraud protection scheme and got their money back, as they should.

 

The credit card company have asked Paypal to return the money paid to them fraudulently and they have done so, as they are bound to do under the law.

 

This is where it gets murky...

 

Paypal have decided, in their infinate wisdom, to take the money they are now owed from YOU, the recipient of the fraudulent funds. You will need to take this up with paypal and get as much info out of them as they can. You could try asking why they didn't just claim against their indemnity insurance for instance. Although, sadly, I doubt you are going to get much joy out of them, I think it's worth a try.

[Debtfreewannabe]

Why do paypal hold people card information on thier accounts?

 

If someone got my password they could buy anything!

 

If they know this hapens alot surely it is iresponsible for them to do this and for each transaction you should have to enter your card details thus eliminatin account hijacking.

 

Most cases it isnt a stolen card but a person using someone else account and using the card details stored and assoiated within it.

 

Paypal are helping people to comit these acts if you ask me. i might as well give my password to a friend in scotland let him order thousands of pounds worth of goods. file a chargeback request, get all my money back and go half with him on the goods. how rediculus easy is it.?

[CAGisforME]

I haveno idea why they keep the numbers.

 

Presumably they will say that it's for the "customer's convenience".

 

They have a duty to keep the information they hold safe, the same as any other financial institution.

[Zamzara]

Have you tried contacting the buyer and asking what is going on? It MAY be that they know nothing about it, or that they reversed the payment in error. Either way I don't think there is any harm in trying to establish from them what has happened.

 

I totally agree with this: it has happened to me as a buyer. I paid for an item, received it, and Paypal reversed the payment for no apparent reason. I had no idea until the seller contacted me, after which I was happy to send payment by another means.

[ajrz17]

I haveno idea why they keep the numbers.

 

Presumably they will say that it's for the "customer's convenience".

 

They have a duty to keep the information they hold safe, the same as any other financial institution.

 

 

Paypal are not regulated by the FSA, they are registered in Luxemberg EDITED DUE TO INACCURACY. They hide, its impossible to contact them and when you do they give you their first name only, never allow you to speak to a manager, DO NOT USE THEM.

[CAGisforME]

Paypal are NOT a bank and were not, therefore, regulated by the FSA even BEFORE they moved their head office to Luxumbourg.

 

It's NOT impossible to contact them. Their opening hours are:

Monday to Friday: 06:00 am - 10:00 pm

Saturday: 08:00 am - 10:00 pm

Sunday: 09:00 am - 10:00 pm For general questions, call you can call them on: 08707 307 191

 

If you have an issue with them, why not post it up in a new thread and you will get some advice?

 

[alanfromderby]

Paypal are NOT a bank and were not, therefore, regulated by the FSA even BEFORE they moved their head office to Luxumbourg.

 

This is not correct, Paypal were regulated by the FSA until the move to Luxumbourg. On their FSA listing it is noted that they resigned around July this year.

[CAGisforME]

I stand corrected about the FSA.

 

However they are NOT a bank!

[davethorp]

Welcome to one of the many reasons why paypal should not be used as a payment method despite ebays attempts to make it compulsory (as they do with the video games category now so you couldn't really avoid the problem). Ebay need to be stopped really as if they end up making paypal compulsory across the whole site many more people are going to be stung with the only people to benefit being the [problematic], along with ebay and paypal.

 

Paypal will pass this to their debt collectors however as long as you have a paper trail showing the item sent and paid for I cant see a court claim standing up (not that I've known paypal take anyone to court as the vast majority of the accounts in negative balance are from paypal's own doing). Your credit record shouldn't be affected as paypal do not register information with the credit reference agencies in my experience

[buzby]

You'll also find that PayPal give earnings that SELLERS are only protected if goods are sent to the verifiable address of the purchaser. In which case they (PayPal) would have taken the hit and not the seller. This factor is well covered and PayPal do warn sellers on receiving payments of the levels of protection available. They can even reject the payment if the buyer does not meet the relevant criteria.

 

I've never had a problem, or a chargeback primarily because I follow their game rules to the letter and do not vary. Just 2 in 500-odd transactions were problematic, but I never lost out as a result. Not much comfort to you I agree - but the lack of a confirmed address and not being verified should have sounded warning bells.

 

They will pursue you, and also close any other accounts they identify you as being a party to.

[FEDUP777]

Hi sorry to hijack thread.....Please help.

 

I listed an auction, which sold for £320. I offered paypal as a method of payment to be protected as a seller. Money was payed and showed as cleared on account...so I sent the goods, confirming sending to buyer. The next day, payment was reversed! Money held by pay pal- pending their investigation.

 

I contacted parcelforce (have proof of sending/can track parcel/ see signed for name and signiture) who said a package can only be redirected upon a no answer at the sent to address.

 

Anyway, buyer recieved my good/money go reveresed back to them.

 

It now transpires it has happened to alot of other people selling and buying from this ebayer. The police are involved, and have just checked an ebay have booted him off. IF A LITTLE TO LATE FOR ME.

 

No paypal infuriate me. By saying im eneligiable for their protection as this auction was not given their protection. From what I gather, their system chooses to cover you or not. Its not somthing you or the buyer can select.

 

Lots of people are going to loose money if you can just retract, after recieving goods. THIS IS INSANE.

 

Please help. £320 is alot to me. And to loose goods as well. What action should I take. PAYPAL ARE CON MERCHANTS-THEY HAVE MADE MONEY FROM MY MISSFOURTUNE.

 

ps address package was sent to was confirmed.

[IdaInFife]

Hi sorry to hijack thread.....Please help.

 

I listed an auction, which sold for £320. I offered paypal as a method of payment to be protected as a seller. Money was payed and showed as cleared on account...so I sent the goods, confirming sending to buyer. The next day, payment was reversed! Money held by pay pal- pending their investigation.

 

I contacted parcelforce (have proof of sending/can track parcel/ see signed for name and signiture) who said a package can only be redirected upon a no answer at the sent to address.

 

Anyway, buyer recieved my good/money go reveresed back to them.

 

It now transpires it has happened to alot of other people selling and buying from this ebayer. The police are involved, and have just checked an ebay have booted him off. IF A LITTLE TO LATE FOR ME.

 

No paypal infuriate me. By saying im eneligiable for their protection as this auction was not given their protection. From what I gather, their system chooses to cover you or not. Its not somthing you or the buyer can select.

 

Lots of people are going to loose money if you can just retract, after recieving goods. THIS IS INSANE.

 

Please help. £320 is alot to me. And to loose goods as well. What action should I take. PAYPAL ARE CON MERCHANTS-THEY HAVE MADE MONEY FROM MY MISSFOURTUNE.

 

ps address package was sent to was confirmed.

 

 

 

All you need to do is enter the tracking number in the paypal dispute.

[buzby]

Did you send the goods to the buyers verified address? PayPal will ONLY cover you if you ship to this address, and take the hit on any reversal themselves. The system doesn't change protection on a whim, either the address is protected or it isn't, and as a seller only if you ship to an unverified address puts you at risk.

[FEDUP777]

I did that and the investigated. But gave the money back to the fraudster! They say that im not eligable for there cover. Police are persuing con merchants....lots of other buyers/sellers affected by indervidual. Currently persuing complaint against paypal, from advice from the fsa. Who know is paypal will pay out...but fingers crossed. I will never offer paypal as method of payment!

[FEDUP777]

It was the confirmed address, but they say sellers protection was not active on transaction.