Legal Question in Business Law in California
Paypal robbing me and giving my money away
Paypal is giving my money back to the customers even though they get the Item they purchased from me on ebay. Now the problem I am having is, I sell to people overseas in England and the rest of western Europe. If one of my customers doesn't get their item they can file a dispute with Paypal and Paypal will then freeze that amount they paid that's in my account before even asking me my side of the dispute. Now in order for me to get my money back, I have to show proof that the item was sent to them. that would not be a problem except that I use the US Postal service Global Express mail to ship my orders. I can afford to send Fed Ex or UPS they want about $60.00 or more to send a CPU that weighs 3 ounces. USPS charges me $24.00 and the have tracking and the customer can have it insured (they never do) The problem is theUSPS tracking ends once the mail carrier for that country takes charge of the package because they have no agreement for the that country to continue to track to the customers door. So even though I can show proof I sent it out to them, Paypal still will give them back the money. they end up getting products for free and I loose a lot of money. Is there not a thing call FOB and how can Paypal get away with this?
Jim
2 Answers from Attorneys
Re: Paypal robbing me and giving my money away
If anyone is "getting away" with something here it is your customers and not PayPal, which probablly doesn't get to keep any money on these transactions either.
That this is a recurring problem suggests either that you are being targeted by an unusual number of frauds or that there really is something wrong with your delivery practices. PayPal is usually pretty good about figuring out who is being straight with them and who isn't, so the fact that you not only get a lot of these claims but consistently lose suggests that you need to start doing things differently.
One option you have is to stop accepting PayPal payments from overseas customers. Another option is to find a different way to ship overseas. You can also refuse to sell to overseas customers. You might also try including in your eBay listings a disclaimer which says that you ship by mail and will obtain as much documentation as your mailing method permits, but that the customer assumes the risk of loss in transit unless he pays for a more secure shipping method.
If none of these methods seems cost-effective, then you probably will just have to accept the occasional fraudulent purchase as a cost of doing business.
Re: Paypal robbing me and giving my money away
It sounds as though you have outgrown Paypal. You will need commercial level processing. I am partnered with a fast, no frills, wholesale, commercial credit card and check cashing processor. You can process via internet the same as paypal, but better and at better rates. Contact me and I'll help your start-up boom.
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