On Dec 26, I purchased a used 19" ViewSonic monitor via eBay and paid $74.21, including shipping, using my checking account via PayPal. The seller had a positive eBay rating and PayPal rating with no negative entries and was a verified eBay and PayPal member.
The seller and I communicated a couple of times to arrange shipping, then I sent payment feeling comfortable all would go well. However, after a few weeks I never received the item, and communication to the seller afterwards went unanswered.
I attempted to reverse the transaction via PayPal, but they could not reverse the transaction or reimburse me. They said they cannot simply refund the money from the PayPal account holder's backup funding source without their approval. There were no funds in the seller's PayPal account to refund me either.
I also attempted to reverse the charges from my checking account, but unfortunately all that did was reverse the payment to PayPal, and immediately I was charged the same amount back. This action was necessary to satisfy eBay's requirements for a claim.
I filed for reimbursement from eBay successfully and will receive approximately $30.00, which is the cost of the item minus shipping and handling and minus a $25.00 processing fee.
I also filed an internet fraud report with the FBI.
There are real issues with this situation that need to be addressed:
1. The seller refused, for whatever reasons, to deliver the item, and I had no recourse for a full refund even though I paid for the item with a check (an electronic check in this case). The electronic check is paid to PayPal, and then PayPal makes the payment to the other party. If the transaction had been made directly from my bank to the seller's bank, I would have been able to completely reverse it. PayPal needs to make this change on a transaction originating from a bank account (not a credit card account, which in many cases already offers protections from the credit card company) so this situation does not occur again. The buyer needs to have a method of recourse and is entitled to one.
2. PayPal should have been able to compel the seller, even using the threat of legal action if necessary, to refund my full purchase price.
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