Q. Hello. I have a quick Question about PayPal. I bought an item on eBay, I never received the item so I opened a claim. It was ruled in my favor but the seller did not have sufficient funds in his Paypal account. What happens now? Do I lose the rest or will Paypal give me what is owed?? The dispute in my Paypal account says closed, so I am confused. Please help. Thanks.
A.In my personal experience: I have won disputes against fraudulent sellers who seemed prepared to lose as they knew they were in the wrong and had quickly removed funds and/or cancelled connected bank accounts.
So although the dispute was decided in my favor since the seller did not have the funds in Paypal and either removed or lacked funds in connected account, I never received a cent.
My next step was to contact my credit card company and dispute the charge I was credited the funds by my cc company. (Chargeback) Most banks and credit card companies have consumer friendly chargeback policies relating to online fraud.
In any future disputes my first step will be to dispute the charge before even bothering with ebays/paypal dispute console.
BUT, as long as a seller has a long history of transactions, you are not likely to have this happen again – it is in a sellers best interest to maintain a positive standing and feedback level, and with a high transaction level it is unlikely that they will have a paypal account that is not funded and current.
eBays buyer complaint policy:
General. PayPal’s Buyer Complaint Policy covers goods that are purchased and not delivered, and goods purchased on eBay and paid by using PayPal that are “significantly not as described”. For payments relating to eBay transactions, this Policy may apply if the buyer complaint is ineligible for coverage under PayPal Buyer Protection. Buyer disputes must be filed within 45 days of the payment and, even if the buyer’s claim is justified, the buyer will receive a recovery only if there are funds in the seller’s account. RECOVERY OF YOUR CLAIM IS NOT GUARANTEED.
Paypal is notorious for being on the sellers side and conducting sketchy business including account freezes and lost funds. Research claims against PayPal via the BBB to get an understanding of this.
I am a seller and even I use a prepaid debit card to protect myself, I am completely honest in my transactions and as a result and trust my own judgement above ebay/paypals.
eBay now has a buyer protection guarantee, you will see this on eligible listings
Long story short – contact you cc company and request a chargeback, here is the relevant info from Paypal/eBay
If you close your dispute or it is otherwise closed, or if you cancel your claim or it is denied or results in no refund, you may still be able to pursue your card chargeback/reversal rights. In many cases, your credit card company will allow you to file a chargeback for 90 days or more after the date of payment. If PayPal resolves a claim in a buyer’s favour but the buyer does not receive a full recovery of their payment and if the time for processing of a claim results in the buyer’s loss of chargeback rights, then PayPal will provide a full recovery to the buyer.
My suggestion for prepaid debit card to use as added protection.