eBay and PayPal

Eric Stumpf · Post by **Eric Stumpf** » 30 Mar 2009 2:45 pm

After a hiatus from selling on eBay, I need to get back into it. I notice that now one isn't allowed to do so unless you will accept PayPal payment for your items. I've got to say, I really dislike eBay...always have and now I see they mandate yet another way to grab money out of your sale. Could someone please tell me how PayPal gets your money to you? Will they send you a check or is all credited to your charge card or what? I can't seem to find this info on the ever-ponderous and difficult to navigate eBay site.

Steinar Gregertsen · Post by **Steinar Gregertsen** » 30 Mar 2009 3:03 pm

I've never done any 'big money' sales using PayPal, only sold CDs, and in those cases the money has been left on my account until I decided to have them transfered to my bank account.

Ron Victoria · Post by **Ron Victoria** » 30 Mar 2009 3:59 pm

Mine is tied to my checking account. When a buyer sends money, you just have it transferred to your checking account which takes a few days. Some people open a charge with a low limit and just use that for Ebay and Paypal. I know PP has a credit card but I don't know about it. I've used PP for many years and like it. Remember to add some extra when you sell as there is a PP fee.

hope this helps, Ron

Richard Sinkler · Post by **Richard Sinkler** » 30 Mar 2009 4:37 pm

Mine is attached to my bank account. Watch out when first opening your account. I had to wait an unreasonable amount of time before they would send a check or credit my bank account, and you were limited to the amount you could have transferred or sent out as a check - I think it was $500/month until you become verified. You have to become VERIFIED (see paypals site) to get quick access to your money. They will send a check, but it is an extra charge for them to do it.

I also found out recently, that you have to have a credit card also on account (you don't have to use it for payments, just as a backup to your account) or they will only issue payment by eCheck from your bank account. This takes about 5 working days for the process of paying the vendor and having the eCheck clear. Then they will ship your product. I had to remove my credit card from the account because I'm going through banruptcy and all my cards are closed. Your ATM/Check card with the Visa or Mastercard logo does not qualify as a charge card.

Papa Joe Pollick · Post by **Papa Joe Pollick** » 30 Mar 2009 5:41 pm

I've bought and sold several times using pay pal with no problems.I have a 2nd bank account that I use only for on-line sales..Only keep $5 in it,$0 in my pp account..When I want to buy I transfer the exact amount from my main bank account to the 2nd account..Then pp takes the money from the 2nd account..There's no waiting,it happens in minutes..
When I sell, the money is in my pp account as soon as the buyer sends it..Then in a few hours it it can be moved into my 2nd bank account..Never more than 24 hrs..As soon as it's available it goes into my main bank account..So far it's been very smooth.

Doug Beaumier · Post by **Doug Beaumier** » 30 Mar 2009 8:37 pm

Could someone please tell me how PayPal gets your money to you?

Eric, there are several ways:

I've been using PayPal for about 8 years, over 2000 transactions. It a great money-transfer service, especially for international sales.

Eric Stumpf · Post by **Eric Stumpf** » 31 Mar 2009 2:01 am

Thank you all!

Mitch Drumm · Post by **Mitch Drumm** » 31 Mar 2009 4:22 am

I sold a bit on Ebay 10 years ago, but since that time I have only bought--items ranging from $50 on down. Personally, I have not had any problems with Paypal as a buyer. Paypal wasn't around when I was a seller.

I'd like to see a discussion of Paypal related scams/ripoffs.

Suppose Seller is selling a $100 item to Buyer and Buyer uses Paypal. Presume that Buyer is not ethical.

How can Buyer cause problems for Seller?

I have seen contentions from sellers that when push comes to shove, Paypal favors the buyer and can enable buyer to rip off seller. Despite delivery confirmation, insurance, etc. I think some of the situations involved buyer eventually getting support from his credit card company, which ultimately refused payment to the seller.

Is this true? Not true? Sometimes true? Under what circumstances? How can a seller protect himself COMPLETELY from fraudulent buyers??

Michael Maddex · Post by **Michael Maddex** » 31 Mar 2009 6:54 am

Mitch Drumm wrote:... I'd like to see a discussion of Paypal related scams/ripoffs. ...

A quick search turned up the following: Chargeback Forum -> PayPal: http://www.chargebackforum.com/paypal

Personally, I don't know anything about this Chargeback Forum, but there it is. With a little searching, you can find discussions of just about everything on the web. Travel at your own risk. YMMV.

Wiz Feinberg · Post by **Wiz Feinberg** » 31 Mar 2009 7:36 am

All disputes are handled professionally by PayPal. Documents must be faxed, or PDFs printed out, scanned and sent back. Evidence must be shown by buyers and sellers to resolve disputes. Some buyers are known con artists and PayPal can usually sort them out. Like separating the wheat from the chaff.

The Dispute Resolution Center link provides details about these matters. I have used it to reverse a fraudulent/erroneous charge to my PayPal account.

Mitch Drumm · Post by **Mitch Drumm** » 31 Mar 2009 7:39 am

Here is a quote from a seller in a thread in that chargeback forum, alluding to what I mentioned:

"I'm a seller who is sick of getting scammed by accepting paypal payments from people who receive the stock and then click to dispute because it is an easy option for them. Most typically they end up with my stock AND their money back, paypal is really hopeless in that respect."

So, apparently it is an ongoing issue.

Papa Joe Pollick · Post by **Papa Joe Pollick** » 31 Mar 2009 8:08 am

That's the reason why I never ship until the money is "safe" in my "main" bank account,which pp can't touch.If there is a dispute I still have the money while the whole thing is being procesed.If I lose they get $5 because that's all that I make available..Hope I never have to be in that situation..

Doug Beaumier · Post by **Doug Beaumier** » 31 Mar 2009 8:42 am

I'm a seller who is sick of getting scammed by accepting paypal payments from people who receive the stock and then click to dispute because it is an easy option for them.

No buyer has ever done that to me, and I've received thousands of payments through PP. I've ever had any problems with it.

Maybe the seller who was quoted above is selling junk items and deserves the "disputes".

Mitch Drumm · Post by **Mitch Drumm** » 31 Mar 2009 9:00 am

Papa Joe and Doug:

Does it matter to you exactly how a Paypal buyer funds his purchase?

Do you care if he uses his credit card?

Do you have any reason to prefer a direct transfer in cash from the buyer's own Paypal account?

I have seen it mentioned somewhere that buyers can now use Paypal and their own credit card, without having a Paypal account per se.

Papa Joe Pollick · Post by **Papa Joe Pollick** » 31 Mar 2009 10:20 am

It doesn't matter to me where he gets the money.Like I said I don't ship until my money is locked..

Doug Beaumier · Post by **Doug Beaumier** » 31 Mar 2009 11:01 am

I would prefer to have the buyer fund his purchase from his PayPal funds... although I don't think there is a way for sellers to determine how a buyer is funding his purchase. The purchase confirmations I get from PP do Not tell me how the buyer is paying. It just says the transaction is "Complete". I don't know if he used a credit card, PP funds, or linked to his checking account at his bank.

And when I have made some large purchases, PP has used whatever funds are in my PP account and drawn the rest of the money from my checking account (as per my agreement with them), which takes about three days to compete through my bank. The seller does not know that part of the payment was made using PP funds and part from my bank account. It shows as "Completed" on his end. I think there are different levels of use at PP. I'm "Business Verified" so maybe that makes a difference.

b0b · Post by **b0b** » 31 Mar 2009 11:13 am

PayPal holds the money until you ask for it. I withdraw about once a week into my bank account. The transaction takes a day or two to complete.

There's also an option where they send you a check in the mail. I've never used that.

Another option is the PayPal debit card, which I have. I can pay for things from my PayPal balance, and get up to $50 cash back. Those transactions are instantaneous.

Mitch Drumm · Post by **Mitch Drumm** » 31 Mar 2009 1:05 pm

Doug:

Why would you prefer a buyer pay you directly from his Paypal account?

Everyone:

My question remains:

How can a seller protect himself COMPLETELY from fraudulent buyers??

If the answer is "you can't", then I assume that means you are rolling the dice to some extent every time you sell to an unknown buyer and that all it would take is for one dishonest purchaser to take a notion to make it difficult for you--by bitching to his credit card company or some other means. That is, any buyer COULD do it. You can only hope they don't, but you have no control over it.

If the answer is "you can", how?

Ebay has a lot of forums and the last time I checked it was not difficult to find sellers complaining about this, so I find it hard to believe there isn't something to it.

Doug Beaumier · Post by **Doug Beaumier** » 31 Mar 2009 6:55 pm

Why would you prefer a buyer pay you directly from his Paypal account?

Because the money is transfered within PayPal, from the buyers PayPal account to Your PayPal account. No outside bank is involved, no credit card is involved. The money is already held by PayPal. PP just transfers it from the buyer's account to your account.

How can a seller protect himself COMPLETELY from fraudulent buyers??

Very easily.... just wait until the money has CLEARED to your bank account before shipping the item. Tell buyers ahead of time that you will ship when the payment has cleared your bank. That will take a few days. The buyer pays via PP, then you transfer the funds to your bank, which takes about three days. When the payment shows up on your bank site, ship the item.

Most fraud is purpetrated by sellers, not buyers. Also, keep in mind that PayPal has a Seller Protection policy, although I've never had to use it.

...all it would take is for one dishonest purchaser to take a notion to make it difficult for you--by bitching to his credit card company or some other means. That is, any buyer COULD do it. You can only hope they don't, but you have no control over it.

ANY business is susceptible to cranky customers, and even fraud occasionally. That's no reason Not to do business. If you're worried about getting payments from buyers, require cash in hand only.

Mitch Drumm · Post by **Mitch Drumm** » 1 Apr 2009 3:10 am

Because the money is transfered within PayPal, from the buyers PayPal account to Your PayPal account. No outside bank is involved, no credit card is involved.

Doug: earlier in this thread you said you didn't think a seller had a way to find out how a buyer is funding the purchase. If that is so, how can you tell that a buyer has paid by credit card and may later try a chargeback? If payment is made by credit card, doesn't the payment still appear as "cleared" into your Paypal account and you can then move it into your personal bank account, but you don't know a credit card was used?

If a buyer pays by direct transfer of cash from a bank account or a Paypal account, does he have less protection from fraudulent sellers than a buyer who uses Paypal via credit card?

Doug Beaumier · Post by **Doug Beaumier** » 1 Apr 2009 8:44 am

...how can you tell that a buyer has paid by credit card and may later try a chargeback?

You can't tell how a buyer pays.

If you are concerned about any chargebacks, read this PayPal information: CLICK

The answers to all of your questions can be found on the PayPal site.

Mitch Drumm · Post by **Mitch Drumm** » 1 Apr 2009 9:32 am

Here are a few quotes from that site, all painfully clear:

In a dispute over a chargeback, the decision is ultimately made by the credit card company and PayPal cannot control the outcome.

PayPal reserves the right not to dispute a chargeback even if the seller has provided some evidence, particularly if PayPal believes the dispute is not likely to be successful.

If a buyer waits to file a chargeback, a seller may encounter a temporary hold on funds in their PayPal account for a transaction that occurred weeks or months ago.

The resolution process can take 75-100 days, depending on the credit card company.

Bo Borland · Post by **Bo Borland** » 5 Apr 2009 10:35 pm

I have used ebay & paypal for a number of years but a sale this week went very differently. PP notified me of a 21 day or less hold on the money until it was delivered, "to protect both parties".
While I don't expect any problems, this was the first time this has happened and I'm not happy about it.
The buyer has only 6 transactions, all but one are from this week and for some pricey stuff. If it goes bad, I am out a few bucks.
Has this hold thing happened to anyone else?

Bill Hanson · Post by **Bill Hanson** » 7 Apr 2009 3:29 pm

Ebay/PP have instituted a new policy where a payment to you goes on "hold" for 20 days UNLESS you prove to them that the item was delivered or the buyer leaves positive feedback. I have sold and had positive feedback and was forced to call them three days later to release the money. They claimed the system was "new" and had some glitches. This is really just another way to earn interest on thousands of dollars for three weeks before release.

Doug Beaumier · Post by **Doug Beaumier** » 7 Apr 2009 8:42 pm