Paypal news

baccaruda

Anti-fraud investigation


The rate of fraudulent PayPal transactions is less than one-half of one percent, eBay has said.

Not a great PR release there - I'd have kept that to myself. So 1 in every 200 transactions is fraudulent? That's much higher than I'd have guessed. I've used Paypal at least 200 times - so I guess I'm just lucky...

Russ

If their claim is accurate, it's actually a lower fraud rate than that of internet credit card processing in general.

Russ, NCNE

fishcooker

Perhaps the issue is not the number of potholes, but the depth of them.

K6AZ

I've done thousands of transactions on PayPal, and have only had one problem, with a buyer trying to do a chargeback on a $300 item. I sent the item first class insured and he claimed he didn't get it. PayPal sided with him because of no online tracking number, and hit me for $310. I went to the PO and had them pull up the insured receipt number, and sure enough he signed for it. I sent an email to this buyer telling him I had confirmed he signed for it, and if he didn't resend the payment in 24 hours I was going to file mail fraud charges against him. About half an hour after I sent the email, he resent the payment.

Never accept PayPal payments from unconfirmed addresses, and use delivery confirmation and you should be able to avoid any trouble.

baccaruda

Good advice K6 - I use delivery confirmation now with any serious Paypal purchase.

hookedoncoins

I have had around 200 transactions (little less) on Paypal and eBay and have had no problems. I think a major factor, however, is that I check feedback on all items I buy and over half of the items I have bought have been from forum members.



<< <i>I've done thousands of transactions on PayPal, and have only had one problem, with a buyer trying to do a chargeback on a $300 item. I sent the item first class insured and he claimed he didn't get it. PayPal sided with him because of no online tracking number, and hit me for $310. I went to the PO and had them pull up the insured receipt number, and sure enough he signed for it. I sent an email to this buyer telling him I had confirmed he signed for it, and if he didn't resend the payment in 24 hours I was going to file mail fraud charges against him. About half an hour after I sent the email, he resent the payment.

Never accept PayPal payments from unconfirmed addresses, and use delivery confirmation and you should be able to avoid any trouble. >>



I just wonder how people like that sleep at night. Must have not been too bright either, seeing that he signed for the package.

baccaruda

I can't believe someone would pull something like that either. Shoot, you've got the guy's address. Do you really want to screw a potential madman and give him your address?

If someone hit me like that on Paypal, I'm pretty sure I'd have to exact a little justice on his residence personally.

ddink

One VERY big source of PayPal fraud is virtual auctions. I play a game called EverQuest, a massively multiplayer online role-playing game, and people actually buy and sell virtual items within the game. Some particular sword, for instance, may sell for $300--nothing more than a collection of pixels within a game, but it sells for REAL money.

Anyway probably as many as 1/10 of these transactions are fraudulent: naturally there is no proof that the "item" was delivered so chargebacks are routine. Also, until recently iirc PayPal was involved in foreign online casinos, many of which were also fraudulent.

dbldie55

The problem I see with PayPal is how they will freeze an entire account for one transaction. Seen it done more than once. For this they are quilty. (this has nothing to do with fraud, but with how PP operates)

K6AZ

Unfortunately, there are a growing number of people who bid on eBay, use PayPal, and when they find you sent an item that can not be tracked online, they file a chargeback with PayPal. How do they sleep? I don't know, but it is essential to hang on to your postal receipts and use DC when you can. I think I am fortunate in that I have never allowed unconfirmed payments, and have had only one problem in well over 2000 PayPal transactions. And I got my money back on that one.

Nap

Hey, funny you should mention virtual items and online games.

I actually did the same, selling things from the game "Ultima Online" and used the proceeds to get myself back into coin collecting. In 100 or so eBay auctions, I was very fortunate not to have any instances of chargebacks, though I did have several deadbeat bidders and one stolen account that was bidding on my auctions.

I agree that the rate of fraud in these transactions is far, far higher than the average amongst all other eBay / internet transactions. Paypal absolves itself of all blame in cases of chargebacks in these situations since there are no receipts or anything to prove delivery of goods. Essentially, if your buyer does chargeback, you have no recourse whatsoever.

Additionally, most of the parties involved in chargeback scams are minors, using parent's credit cards and/or bank accounts, and occasionally stolen paypal/bank identification.

With real items, the likelihood that a buyer is serious in his intents, and with coin collecting the buyers tend to be more older (though not necessarily wiser or more mature for it.) The chance of stolen paypal accounts still remains though.

ANACONDA

I hate PayPal. Just thought i'd let you know that. Tied up major bucks on a transaction and never responded to a letter i sent them.

adrian

Barry

Adrian,
You're just upset they they didn't get all nervous and drop what they were doing, like most do, to answer a lawyer letter

BTW, I sent you a PM earlier today. I know you don't like to answer email, but if you have a chance... Thanks.

MSD61

Not a charge back but I have one in the works now from a buyer that bought a Canon camera outfit from one of me ebay auctions. It was sent to him fully insured and He states he has never received the camera. Yet the PO says that someone at that address signed for it We shall see what buyer says after the PO tracks it down.

K6AZ

If he files a claim with PayPal and they yank the money from your account, inform the buyer you will file mail fraud charges. The one time it happened to me it motivated the buyer to resend the money in a hurry.