PSA: Guys selling using PayPal Gift!!!

  • Thread starter Thread starter Stealthtastic
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Stealthtastic

Stealthtastic

Active member
A lot of people think they are 110% safe if selling and accepting PayPal gift, but you aren't!

I found this on another forum:
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Here's the scenario:

The seller asks for the funds to be paid as GIFT, thinking this offers protection for the seller.
The buyer sends a paypal gift using a credit card by clicking on the pay the associated paypal fees option. (I am paraphrasing the exact option here.)
The recipient of the payment (seller) receives the GIFT payment and the full amount shows up in their account as a gift.
Everything looks okay so the seller ships the watch.
Days or weeks later, the fraudster buyer will issue a chargeback with their credit card company by claiming that their credit card was stolen, etc. The lies are easy.
Credit card company will issue a chargeback, and in response, Paypal will hold the associated funds--which are now in the seller's account.
Because this was a GIFT transaction, as far as Paypal is concerned, there was no sale or exchange of goods.
Because there was no sale, the seller cannot use shipment confirmation to argue a legitimate transaction. Evidence of shipment means nothing when there was no official exchange of goods.*
Seller's funds are held/retracted and buyer gets a free watch.



LESSON: DO NOT ACCEPT PAYPAL "GIFT" PAYMENTS IF YOU ARE A SELLER.


*NOTE: If the PayPal transaction occurred using the "item or service" option, then the seller can at least try to fight chargeback fraud by submitting proof of shipping and/or delivery.
 
hopefully people on here would not do that or id paypal gift a plane ticket to the address i shipped whatever to, and give them a nice payback gift lol..
 
Yeah..and someone on another forum didn't think you could pay gift via CC but you totally can, just screencapped this:

Capture_zps8aaccd7c.jpg
 
The whole point of using the Gift option is that you trust the other person. No trust= No Gift sent or received.
 
Yeah! I have friends that say things like "oh well the guy has no refs but will pay with gift so w/e" all the time...just want to clear up misconceptions.
 
The way around this is to have the buyer choose a different funding source other than a CC. PayPal will not reverse charges on a Gift payment if the funding source was either from the buyer's PayPal balance or if the payment came directly from the buyer's bank account.
 
glip22":2iflrrz8 said:
The whole point of using the Gift option is that you trust the other person. No trust= No Gift sent or received.
Click to expand...

I thought the whole point of the gift option was that you were sending a gift.
 
Bob Savage":1q5wqokk said:
glip22":1q5wqokk said:
The whole point of using the Gift option is that you trust the other person. No trust= No Gift sent or received.
Click to expand...

I thought the whole point of the gift option was that you were sending a gift.
Click to expand...
No, it's for people to buy products from retailers and private parties without the seller having to give PayPal a fee because they are an evil, overcharging corporation. C'mon, get with the program!

Screw PayPal! They should just give us a service for nothing! Amiright, guys?

Steve :no:
 
PayPal fees are what, 3% or something? That's 30 bucks on the thousand? I think sellers should either eat that cost or calculate it into their prices. It's not much to pay for the convenience. I understand it beig a concern with eBay where it's like 10% though.
 
It's not the fee it's the threat of a charge back. The system is flawed. Buyer is not delighted with item (for any reason legit or not,buyers remorse maybe?) he initiates a charge back, the money is sucked back from your account and you have no item or money. Then you have to plead your case present evidence and if your real lucky you will get your item back, definitely used and maybe damaged. I had some prick buy brand new electronic equipment off me on Ebay for $800. He paid with PP. 3 weeks later I see a negative $800 balance in my account. It took two weeks to get the money back and plenty of phone calls, they said the only reason I got my money back is because the buyer dropped the case, probably when they insisted on returning the electronics, even if I got the stuff back it would have been used and not worth shit. I'm fine with the fee.
 
Money order .89c at the local Rite Aid or USPS :

Money Order Features

Postal Money Orders are…

Always valid—they never expire.
Available in values up to $1,000 each if sending within the United States and $700 each if sending abroad.
Cashable in 29 countries. Which countries?
Can also be cashed or negotiated at your bank and other financial institutions.
May be replaceable if damaged, lost, or stolen. Just hold on to your purchase receipt.

What do money orders cost?

$0.01 to $500.00 .......................$1.20
$500.01 to $1,000.00 ................$1.60
Postal Military Money Orders…..$0.35 (issued by military facilities)
International Money Orders…… $4.50

What do you need to buy one?

Cash, debit card, or traveler's check for payment. Never leave home without them. Seriously been using them forever and never an issue.
 
sah5150":294x0zgo said:
No, it's for people to buy products from retailers and private parties without the seller having to give PayPal a fee because they are an evil, overcharging corporation. C'mon, get with the program!

Screw PayPal! They should just give us a service for nothing! Amiright, guys?

Steve :no:
Click to expand...

Dang, twice in two days! You're right.
 
I think it is hilarious when guys say the seller should eat the fee's....I can tell you as a seller I would MUCH rather you send me a money order, check, whatever and I send you the item when it clears vice having to deal with PayPals nonsense of telling me I have to refund someone becasue of buyers remorse....95% of the time its the BUYER who needs Paypal so they can pay with a credit card....I am not a business....I do not earn my living buying and selling gear, its a hobby, so if you want to use paypal as a buyer on my goods I am not eating 90 - 150 bucks just because you need to finance what I am selling...its not a "cost of doing business" in most our cases...its a matter of us passing on one HELL of a bargain on our used equipment to someone and them usually not being able to save up the cash and needing to finance it...sorry, but there will NEVER be a day I pay your finance charge.

As far as PayPal gift...I would NEVER use it with someone I dont already know....
 
I would never send a money order to someone unless they had an outstanding reputation and list of references.
 
RedRider":9w3ij5fe said:
I think it is hilarious when guys say the seller should eat the fee's....I can tell you as a seller I would MUCH rather you send me a money order, check, whatever and I send you the item when it clears vice having to deal with PayPals nonsense of telling me I have to refund someone becasue of buyers remorse....95% of the time its the BUYER who needs Paypal so they can pay with a credit card....I am not a business....I do not earn my living buying and selling gear, its a hobby, so if you want to use paypal as a buyer on my goods I am not eating 90 - 150 bucks just because you need to finance what I am selling...its not a "cost of doing business" in most our cases...its a matter of us passing on one HELL of a bargain on our used equipment to someone and them usually not being able to save up the cash and needing to finance it...sorry, but there will NEVER be a day I pay your finance charge.

As far as PayPal gift...I would NEVER use it with someone I dont already know....
Click to expand...


THIS...100%
 
I did a local deal, let the guy pay with paypal, a couple days later the funds mysteriously vanished from my account. the buyer said he never eceived item!!!! I did noit have shipping info, so never got the money back. they said they needed shipping info to prove I gave him the item, but told them it was local. they did not seem to care. I lost the item.
 
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