My Wife sold her Iphone 4s on Ebay and used Paypal for the transaction. Two months later she finds out that Paypal was a victim on fraud and they take the money out of her account. Notice I said Paypal was the victim, not my Wife. So what did they do? The robbed my Wife! They stole money from her. I am not exaggerating here either. I am going to be very clear about the story here and explain why not only does Paypal suck, but this storyline leads to the demise of Ebay and Paypal.
Iphone 4s sold on Ebay to an Ebay registered user.
A Paypal registered user pays for the Ebay transaction.
Funds are deposited in the account.
The item is mailed through the USPS.
The buyer notifies my Wife through an Ebay message that the item was received.
Over a month later, it appears that someone fraudulently used a credit card for the transaction and the funds are withdrawn from the account. We are asked to provide shipping information. The shipping number is sent to Paypal as well as an email receipt from the buyer. Not Good enough according to Paypal. Then my Wife spends an hour in the USPS office and gets a stamped copy of the delivery receipt for Paypal. Not Good enough according to Paypal.
What? Seriously? So, Paypal is a victim because they let a fraudulent transaction through their system and they pass the buck. Then we meet all of their burdens of proof and it is not good enough.
And where is Ebay and their Seller's Protection? Oh... sorry that does not exist if Paypal says no.
This whole thing is a joke. In the "real" world if someone goes to a store and buys an item with a stolen credit card and leaves with that item, the store doesn't "not" get paid. The credit card companies have insurance against fraud.
At this point I feel like if I do not personally deliver the person that committed the crime to Paypal, we are not getting the money back.
I do not even care about the money at this point. It is principle. How can an ecommerce system survive when there is no protection for the sellers? Where is Ebay in protecting the seller?
I have heard from several friends that they have given up selling on Ebay and will not use Paypal because of stories very similar to this.
I know I am not done. I am going to be very loud about this story. I am going to continue posting the correspondence with Paypal and the "proof" that we help our part of the transaction and delivered the item.
Paypal - Good Luck