Yet another case of an honest seller being scammed through PayPal, with the fraud receiving the hard-earned money from PayPal without the seller getting a chance to fight their case.
A jewellery seller in the US receives order for piece of jewellery costing more than $15,000. The seller takes a payment for half of the money and sends the item to the customer. At this point, the customer initiates a chargeback on the goods, claiming to their bank that the items are broken and not as described, despite the fact that the shipment was insured by the seller, and the item was made to the customer’s exact specification.
The seller sends documentation to PayPal detailing their part of the deal, which was legitimately carried out by them in full. PayPal, however, not only charges the money from the seller’s account and gives it to the fraudulent buyer, but also freezes access to the sellers PayPal account, meaning they loose all their previously earned money, without having had any chance top fight their case.
The lesson is… think very carefully before setting up you online business with PayPal or other similar merchant service providers, because you will receive no protection in the case of an obvious scam like this; whether you have proof of delivery or other documentation establishing your credentials, PayPal continues to side with the buyer whilst the seller hangs out to dry…