I can’t count the number of times I have been denied Seller Protection despite following the exact letter of the PayPal law for it.
The latest incident is typical -PayPal decides they will not cover a game subscription card after a buyer filed an unauthorized transaction report because it is an “intangible good”, despite it is a physical card and I they have covered me numerous times for others. I called last week to inform them of this, they said a ticket would be opened with a supervisor and he/she would need to sign off. No email/phone call/follow-up and 10 days later, I call again and it’s like that interaction never happened. On top of that, they now say that it was a chargeback for “item not received as described” which doesn’t make sense since I have an email from them saying it was a chargeback for an unauthorized purchase. They told me today they would open a ticket and I asked for an email confirmation -none received.

Source: http://www.paypalwarning.com/denied-seller-protection/

If this doesn’t scare you away from this company, I don’t know what will. A couple of weeks ago I made a purchase that amounted to roughly $430 using PayPal and selected to pay by credit card versus a bank account payment as I always do. I’ve been paying this way for at least 10 years glitch free. Well I logged in two days ago to see that I have a negative amount owing to PayPal and some guy from accounts receivable trying to contact me to pay it. This makes zero sense as all of my payments are immediate since I use my credit card. I looked at that transaction for $430 and see that I successfully submitted it but two days later, PayPal decided to ignore the fact that it was a credit card payment and instead gave the seller…get this…$280 from PayPal funds. Not even $430 but this random amount of $280. PayPal then decided that I now owe them slightly more than $280 U.S. And I’m Canadian. This would work out to over $300 for me to pay. The difference ‘owing’ to this Canadian retailer is $154. So where the hell is this random U.S. amount coming from?!! They literally reached into my account, changed my form of payment, didn’t properly pay the retailer and are now billing me some astronomical fee. What a bizarre and irritating situation.

Source: http://www.paypalwarning.com/trusting-morons-paypal-money-day/

Paypal opened a case against me where buyer said his card was used fraudulently. I responded to the case with proof the buyer bid on the item on eBay, won the auction, paid for it, the item was shipped and received at his validated paypal address, etc…, but paypal A: opened a second case on the same item, refunded the buyer, then B closed it with some lame excuse about the payment never being accepted. Then they closed the case on which I provided the evidence.

Secondly. I went to remove a backup finding source from paypal and kept getting an error that I can’t do that while an instant transfer is pending. But there is no transfer pending that I could find and more importantly should not be any transfer pending.

I tried calling paypal and got sick of sitting on hold so freaking long (an hour at least) I hung up! I’ve tried sending emails to no avail. So, it seems that the message PayPal is sending me is that there is no customer service at PayPal so either take it up the #$% or quit using PayPal

Source: http://www.paypalwarning.com/paypal-sides-fraud-buyer-clear-proof/

On Saturday at 19:52, somehow a transaction of 410€ was made from my Paypal account to the e-mail “[email protected]”.

I instantly opened a ticket for unauthorised transaction, in about 1-2 hours PayPal returned my query saying after an investigation they had concluded that this transfer was not fraudulent.

I called their customer care line, and the agent was very polite and trying to figure out why they had marked it as a “Valid transfer” Without any proof and he explained to me that normally there is at least a comment from the recipient justifying, yet he could not see anything on my case. He recommended me to call my bank and block the transfer in the meantime.

Come Monday, I check my bank, no money has been taken but I receive an e-mail from PayPal telling me my account has been limited and to please resolve my query. I once again filed a ticket for unauthorized transaction that was escalated. The reply was: “Please speak to the person the transfer was made to and try to settle the dispute”. << THAT IS THE MOST FUCKING RETARDED POLICY OR RESPONSE I’VE EVER BEEN GIVEN. If it was someone who has hacked my account, I doubt they are very much up for discussion. So at this point, I’ve filed a formal complaint against customer support and will wait for further news.

Source: http://www.paypalwarning.com/paypal-contact-person-hacked-account/

This is more of an ebay issue than paypal, but I will share it anyways. I sold two high ticket items (over $600). Both arrived damaged, to two separate addresses. On one case, the buyer agreed to a replacement, the other, the buyer did not even indicate if the item was working, did not agree to troubleshooting, and did not agree to provide pictures of damage. Funds frozen on both cases, resulting in a negative balance since some funds were already disposed of. First item, customer filed a complaint, got a full refund from Ebay even though he agreed to a replacement, so now he has both the money and the items.

Second buyer also filed a claim, stating my item was insured, when I informed them that there was a denial on the damage claim (so no insurance money). Ebay refunded him as well, but since there was no funds left, I am stuck with no merchandise, and a negative paypal account. My main issue is that Ebay does not even contact a seller to get their “take” on a claim anymore e, and furthermore, their practice of allowing buyers to keep the merchandise even after a “money back guarantee” is just aiding fraud and fueling the corruption.
They should have no right to issue a refund, certainly not without getting all the facts, especially from a seller, and they should not ever release funds until such “damaged” merchandise is returned to the seller. I can only take comfort now that I had the foresight to close my linked bank account before they were able to extract any more money from me. They will not see another penny from me, nor will I ever do business with them again.

Source: http://www.paypalwarning.com/frozen-funds-scamming-buyers/