PayPal Drama

[FourT6and2]

Found a guitar on FB Marketplace (in another state). Asked for specific photos from various angles to confirm it's a real guitar and seller actually has it. Agreed on a price and paid via PayPal Goods and Services as agreed. Buyer immediately messages me that PayPal put a hold on the funds and that he won't ship the guitar without cash in hand. PayPal has the money. But they won't release it to the seller until the seller ships the guitar and it's been received.

I believe PayPal does this to verify accounts that have been inactive or don't have enough selling history? It's a form of escrow to protect both parties.

But the seller is sketched out and thinks I'm trying to scam him.

I told him that he needs to call PP and find out why they're putting holds on his account. But he told me he has plenty of account history, however I'm betting it's mostly Friends & Family. And that's why PP did the hold. He doesn't seem to understand how PP works.

Oh well.

 

[FourT6and2]

But here are some photos of the guitar for entertainment purposes.

 

[japetus]

4 hours later...

"Hi I am new here and I am posting to say that user FourT6and2 is trying to scam me!"

 

[the4thlast1]

You might be better off with cancelling the order for a refund if he won't ship it first. It's basically the same thing Reverb does. When you sell something you dont get the money until after you ship the item.

 

[japetus]

You might be better off with cancelling the order for a refund if he won't ship it first. It's basically the same thing Reverb does. When you sell something you dont get the money until after you ship the item.

Yep just cut bait and end it. The drama is never worth it. Onto the next axe.

 

[BABMusic]

Uh oh. I had a seller tell me "Paypal put a 2-week hold on your funds..." when I sent him payment to buy a Marshall amp from him. It turned out, it was a total scam. It was one of those usernames that was legit, but someone else hacked into (not on this forum). I got my money all back, because I had protection, but watch out for these scammers. Not sure this is what happened, as I did once have a legit sale that PP put a 2 week hold on (not sure why), and I did end up getting the item once payment cleared.

TLDR: avoid that seller and move on.

 

[FourT6and2]

Uh oh. I had a seller tell me "Paypal put a 2-week hold on your funds..." when I sent him payment to buy a Marshall amp from him. It turned out, it was a total scam. It was one of those usernames that was legit, but someone else hacked into (not on this forum). I got my money all back, because I had protection, but watch out for these scammers. Not sure this is what happened, as I did once have a legit sale that PP put a 2 week hold on (not sure why), and I did end up getting the item once payment cleared.

TLDR: avoid that seller and move on.

I don't think this is what happened here.

Seller just put the guitar up on Reverb as another option. But Reverb will also hold the funds until seller provides tracking and confirms delivery. So I'm not sure how the seller thinks that's any different lol.

Also, Reverb charges sales tax to me and selling fees to the seller, so I'm not sure how this guy thinks it's any better for either one of us. I think I just need to walk away from this one. With Reverb, it's now way overpriced for a used instrument as new ones have come down in price recently.

 

[Meeotch]

I would be interested to know - if you decide to move on and he refunds you - if the selling fee is kept by Paypal, or if they are able to distinguish the situation as is and refund it appropriately. I guess technically it would be the seller on the hook for eating that fee, not you, but I would still like to know how Paypal deals with this.

 

[Metlupass2]

I don't think this is what happened here.

Seller just put the guitar up on Reverb as another option. But Reverb will also hold the funds until seller provides tracking and confirms delivery. So I'm not sure how the seller thinks that's any different lol.

Also, Reverb charges sales tax to me and selling fees to the seller, so I'm not sure how this guy thinks it's any better for either one of us. I think I just need to walk away from this one. With Reverb, it's now way overpriced for a used instrument as new ones have come down in price recently.

Just cancel it if you're able to and let him know. It sounds like it won't be worth the headache. Yet another reason why I only accept FF or Zelle.

 

[7704A]

I would be interested to know - if you decide to move on and he refunds you - if the selling fee is kept by Paypal, or if they are able to distinguish the situation as is and refund it appropriately. I guess technically it would be the seller on the hook for eating that fee, not you, but I would still like to know how Paypal deals with this.

I think PayPal keeps the fees. There was a kerfuffle over this when they started doing it, if I remember correctly.

 

[shar-vell Dan]

If you're a verb member they can tap your bank when evr / however they want. You're just along for the ride.

 

[FourT6and2]

I would be interested to know - if you decide to move on and he refunds you - if the selling fee is kept by Paypal, or if they are able to distinguish the situation as is and refund it appropriately. I guess technically it would be the seller on the hook for eating that fee, not you, but I would still like to know how Paypal deals with this.

There is no "selling fee" for PayPal. Are you talking about the 3% fee PayPal takes as a transaction fee? Yes, that is refunded, as it was never taken out of the payment in the first place. the transaction doesn't complete until the seller accepts payment and the funds are released, which never happened. Refund was already issued.

 

[FourT6and2]

Just cancel it if you're able to and let him know. It sounds like it won't be worth the headache. Yet another reason why I only accept FF or Zelle.

Already done. No issue.

I don't understand only accepting FF or Zelle or Venmo. If the buyer pays the fees (like I did), then seller should have no problem accepting PayPal. After all, why would I want to risk thousands of dollars on an unknown seller. That's what PP is for—buyer and seller protection. If I know the person and trust them, sure... FF and Venmo are fine.

If a seller refuses to accept PayPal even when buyer agrees to pay the fees, that's a red flag.

 

[FourT6and2]

I think PayPal keeps the fees. There was a kerfuffle over this when they started doing it, if I remember correctly.

That is not true.

 

[itsgoodnow]

I’ve had PayPal put a hold on incoming fees to me before. It’s been a few years but it was random and happened a couple of times. It’s definitely annoying as hell

 

[Metlupass2]

Already done. No issue.

I don't understand only accepting FF or Zelle or Venmo. If the buyer pays the fees (like I did), then seller should have no problem accepting PayPal. After all, why would I want to risk thousands of dollars on an unknown seller. That's what PP is for—buyer and seller protection. If I know the person and trust them, sure... FF and Venmo are fine.

If a seller refuses to accept PayPal even when buyer agrees to pay the fees, that's a red flag.

I don't want a 1099-K is all. In IL I get a 1099k when I sell over $1,000.

 

[Rackman]

If a seller refuses to accept PayPal even when buyer agrees to pay the fees, that's a red flag.

Yeah it's completely reasonably to want escrow when dealing with an unknown 3rd party.

 

[7704A]

That is not true.

I guess it depends on whether or not paypal counts the fees as paid already even though the seller doesn't have access to the funds yet. Can you link to where paypal says what you're saying? Here's what I've found from a non-exhaustive quick search:

https://www.paypal.com/us/cshelp/article/how-do-i-issue-a-refund-help101
Edit:
Maybe this is what you're talking about?

https://www.paypal.com/us/cshelp/ar...-pending-or-unclaimed-can-i-cancel-it-help111

 

[Meeotch]

There is no "selling fee" for PayPal. Are you talking about the 3% fee PayPal takes as a transaction fee? Yes, that is refunded, as it was never taken out of the payment in the first place. the transaction doesn't complete until the seller accepts payment and the funds are released, which never happened. Refund was already issued.

Yes the transaction fee is what I meant, which is automatically deducted from any goods/services payment on the seller's end. I don't understand where you are getting the "seller accepts payment" idea, because in my experience a buyer clicks "send" on the payment button and bam the money goes straight to the seller and the fee is deducted simultaneously. No option to accept or decline. The buyer sees a window showing the full value of the payment sent, but the seller sees a window showing the full value minus the fees deducted.

Now I suppose if there is a hold on the payment, I can understand how this process is paused, and that the fee would be refunded since the payment was never actually received. But outside of that, Paypal technically says that transaction fees are not refundable and that's why I was asking.

 

[the4thlast1]

Same guitar is on reverb now :

https://reverb.com/item/92805488-mayones-duvell-elite-7-bl