PayPal
Seller Protection Failed After Chargeback, Over $1000 Taken

PayPal advertises seller protection, but it is non-existent. Several months ago I sold a computer on eBay, which was paid for by PayPal. The buyer did not like it and immediately filed a claim with PayPal. Because he did not return the item, PayPal refused his claim, and I thought that was the end of it. However, he then filed a "chargeback" with his credit card.

PayPal CLAIMS to defend sellers in that case. They also CLAIM that you are protected if you (1) ship to a PayPal-verified address and (2) have tracking information and signature confirmation. I had both, but, regardless, PayPal took the money out of my account. PayPal's own web site states (and I kept a screen shot as proof) that "If you win the chargeback dispute you must return the original merchandise to the seller and provide PayPal with proof of this return." I mentioned this to their "Gabriel," who refused to give his last name, only his phone number, and who stated that they cannot enforce it.

As PayPal has no incentive to defend sellers from chargebacks (as they take the money lost from the seller), I asked him for information as to what the buyer's bank was and for copies of how they did defend me. He said they would not without a subpoena.

Furthermore, even though they stole over $1000 from me, they would not restore my account until two weeks after I had sent the money back to PayPal. They were totally incompetent to boot. One of their emails, for example, asked for "more information," but did not say what information was needed nor where to send it. That email, though, did say not to reply to it, as it would not be read. They first told me that I had to pay them money, but did not tell me how much. One email eventually said it was about $50, but then I got an irate phone call from "Gabriel," who told me I owed over $1000. At another point they needed written permission to take the money from my account so that they could restore it, but did not give me either a fax number or postal address to which to send it.

In other words, not only is PayPal dishonest, but they are stupid too. In fact, the only way I got as far as I did was because I sent several emails to assumed addresses for Meg Whitman, the head of eBay, who owns PayPal. It was that which got "Gabriel" to contact me in the first place. Had I not sent that email to Ms. Whitman, I would still be totally in limbo.

Company: PayPal
Country: USA
Phone: 8882211161

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