PayPal Inc
Chargeback Cost Seller $900 and Tiffany Set, No Seller Protection

In February I sold an item (a sterling silver Tiffany salad serving set) on eBay for $900.00 to an individual who paid me for the item via PayPal. The item was described in great detail and had numerous detailed close-up photographs so that the buyer would know exactly what she was purchasing. The item listing stated no returns/refunds.

She received the item a few days later and left me positive feedback, and she was excited about it. That very day, she listed the same item on eBay and even used my pictures in her listing. She was asking $5000 for the Tiffany set. After about 3-4 days she contacted me and said that she wanted to return the item, that someone had told her it was not authentic, and that she wanted a refund. She had buyer's remorse and thought she would be able to "flip" the set for a quick $4000 profit, and when she could not, she wanted her money back. I advised her that it was authentic and that I was not going to issue her a refund.

Next, the buyer initiated a dispute with eBay. After much communication back and forth and my providing evidence that she was trying to commit fraud, eBay decided in my favor and advised the buyer that my listing was correct and that she was not entitled to a refund.

Unhappy with the decision, the buyer then initiated a "chargeback" with her credit card company. PayPal then froze my account and removed the $900 in dispute. PayPal did not give me the opportunity to contact the buyer's credit card company directly. Instead, it asked me to provide all of my information and evidence disputing the buyer's claim, and said it would dispute with the credit card company on my behalf.

After I provided all the same information again, a week went by and PayPal notified me that the credit card company had decided in the buyer's favor. I inquired about the return of my expensive items. PayPal advised me that it had requested that the items be returned to me but could not provide any additional information. I again asked for the credit card company's information to make arrangements for the return, but I was advised that I could not have that information, that the issue had been "resolved," and that PayPal was no longer involved.

I have waited and made several attempts to recover my items, and I have repeatedly contacted PayPal and the buyer to inquire about the return of my items without any response. PayPal will not provide me with the credit card company's contact information.

I am out my merchandise and my $900. I have been left with an $1800 financial loss due to negligent business practices and no "seller protection" by PayPal, negligence by the buyer's credit card company in failing to have the buyer return the item before issuing a refund, and fraud committed by the buyer, who got an expensive item for free and has probably sold it for a profit by now. Does this sound fair?

I have been left with no options but legal action against PayPal, the buyer and the buyer's credit card company. I am in the process of looking for an attorney to represent me in this case. Unfortunately, I know that it is going to cost more to defend my rights as a merchant than the item is worth, but I am sure that is what PayPal, the credit card company and the buyer are counting on.

Company: PayPal Inc
Country: USA
State: California
City: SAN JOSE
Site: paypal.com

  <     >