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Are PayPal sellers at risk?

Now please, anyone and everyone correct me if I'm wrong. This is regarding the topic of selling directly via PayPal. So let's say you sell an autographed item to another individual directly through a PayPal-to-PayPal transaction. And in no way is eBay involved. So the buyer sends you money from his PayPal account to yours via email addresses, and in order to protect himself, he marks the transaction "Goods and Services". So from what I understand, whether the seller likes it or not, the buyer has up to 6 months to make a claim against the seller and to request a refund. And all the buyer has to say is say that the item was not as described. In particular, he can claim that the autograph is not authentic in his opinion without even so much as having a quick opinion to back him up. That's it. The buyer only has to say that he does not believe it is authentic (even if it actually is), and then he can request (and get) a refund up to six months later.

If this is truly the case, this would be quite alarming to sellers. In such a scenario, a buyer could find an item to buy at a relatively good price for the sole purpose of trying to flip it for a nice profit. He could keep trying to turn a nice profit for up to 6 months, and if after several attempts he doesn't get the money he was hoping for, all he has to do is file a claim against the seller with PayPal saying that the item is not authentic, and he gets all his money back. In other words, the buyer gets to play with the seller's money and time at no risk for the buyer at all.

So is this truly a risk that sellers now have to face while selling via PayPal!

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Permalink Reply by Mark Saurin on August 27, 2016 at 12:54am

this also could apply to your credit card as well, because, PayPal have to comply to the same t&c as the cc these days, this is what l am lead to believe, I use PayPal on a weekly basis 

Permalink Reply by Full Time Flipper on August 27, 2016 at 3:45am

paypal is a fraudsters paradise

Permalink Reply by Pete Bendu on August 27, 2016 at 5:10am

The only semi-good side to this, is that the buyer has to return the item in order to receive their refund.

The scary part is if for any reason at all you ship without signature tracking, the buyer can make his claim as "Item not Received,"  in which case he just gets his money back even if he did get the item. That way the seller is out both the item and the funds.

If you sell using Paypal.....always spend that extra few bucks for Signature tracking. 

Permalink Reply by Ian Baldock on August 27, 2016 at 7:44am

If I could highlight Petes last sentence I would.

Permalink Reply by Bruce Juice on August 27, 2016 at 9:03am

Paypal used to have a 45 day return policy and the 180 days they have now is absurd.  Half a year to decide if you want to keep or return a purchase?  Huge advantage for the buyers.  The only advice I can give is to be careful who you are selling to and use signature tracking especially for expensive items. (I think it's required when the item is worth more than $250)

Since most people also pay on eBay with Paypal -- doesn't the same return policy apply? 

SELLER beware!

Permalink Reply by Kit on August 27, 2016 at 8:14pm
Hi James,

I used to sell my mint-in-box antique toy to one Italy buyer by Ebay. Once the buyer received my item, he filed a claim via Paypal that my item was totally damaged. I tried my best to explain to Paypal about the possibility of being cheated. Unfortunatly, Paypal's policy was to alway protect buyer. The decision was to give buyer money back once he returned item to me. Once I received the parcel, there was no toy inside but only one box of DVD. So I lost money forever. That was the last time I sold the item on Ebay.
So I think that seller is always risky when selling items via Paypal. The only way is You have to trust the buyer in some certain level before selling item to them. Nationality of buyer is also important, beware of buyer from Italy and Africa.
Permalink Reply by Paul on August 27, 2016 at 8:26pm
I had a woman try to stiff me out of a large sum of money from Thailand, she had a 100 percent positive feedback on ebay, luckily paypal used common sense and it was in my favour. So im reluctant to post to any no English country.
Permalink Reply by James on August 27, 2016 at 9:56pm
That is a sad story, Kit. Sad for you, and sad that guy from Italy was so pathetic. I know we did business together Kit, and we both fulfilled our obligations. It was a hassle-free transaction. So everyone on AML, I will let you all know that you can trust, Kit! Kit, you are very nice and easy to do business with.
Permalink Reply by Paul on August 27, 2016 at 9:58pm

Its a roll of the dice sometimes.

Permalink Reply by James on August 27, 2016 at 10:36pm
That is for sure.
Permalink Reply by Kit on August 28, 2016 at 10:05pm

Thanks so much for your kind words, James. I am sorry to know

Permalink Reply by Barbara Archie on August 28, 2016 at 3:52pm

I think that both Ebay and PayPal put the sellers & buyers at high risk.  All the buyer has to say is that the item was not as described.  That could be anything, such as the item being older.   They almost always go with the buyer.   I have also heard of many boxes being returned so the buyer would have some level of proof of return and I have also heard of sellers shipping out empty boxes.  They truly are a scammers paradise!

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