On December 30th an eBay user purchased an item from me using the Buy It Now option. This user paid for the purchase, including shipping, via PayPal. PayPal accepted these charges, and I subsequently shipped the item to the buyer. The shipment was made with UPS. The item was delivered on January 5th and signed for. The user left positive feedback for me on eBay.
As PayPal accepted the payment, I shipped the item to the buyer, it was received and signed for, and the buyer even left positive feedback, my end of the transaction was carried out in good faith and beyond.
In early February I received an email from PayPal stating, "We have recently been informed that your PayPal Account received funds from an account that has been associated with unauthorized credit card use."
PayPal deducted the amount of the transaction from my account (over $900) and froze it. PayPal also stated the following in the email:
"PayPal indemnifies sellers from chargeback liability resulting from a buyer's unauthorized use of a stolen credit card and/or false claims of non-shipment of goods for payments received through PayPal of up to $5,000.00 USD per year when the following conditions are met:
... The seller can provide reasonable proof of shipping which can be tracked. This documentation must show that you shipped to the address on the Transaction Details page. (Most U.S. Carrier companies, including the U.S. Postal Service, offer this service.) For transactions $250.00 USD or more in value, the seller also needs to provide proof-of-receipt in the form of a signature from the recipient. Because comparable proof of shipping is not currently available for electronically-delivered items, we are currently unable to offer Seller Protection for digital goods and other electronically-delivered items..."
PayPal has acted irresponsibly and has violated my trust by simply deducting these funds due to an alleged "chargeback." I provided the UPS shipping information on February 8th and have received NO response regarding when my funds will be restored. I also have 100% positive feedback on eBay in case there is some doubt as to my integrity. I cannot see why my funds have been taken, and it is now approaching 3 weeks since this illegal act took place, without resolution.
I have learned through this matter that PayPal is a consumer-unfriendly institution. They have lost my trust, and I have now joined the ranks of many other unhappy "former" PayPal customers.
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