Paypal concerns...Help!

[SammyJ]

I never really used it much. I'm about to send a pretty large payment for some goods. The guy is a verified member on paypal but the account has only been opened for a month. I'm kinda hesistant right now. Is there anyway I can get screwed if I send the money?

[Davydave]

Is this for an Ebay transaction? If so, check out his ebay feedback rating.

[be47320]

yeah. if its craigslist, dont do it

[SammyJ]

no not craigslist or ebay

[be47320]

well, give us more info....of course you can get screwed, paypal has some fraug protection but you prob wont see anything for years, especially if its a big amount

[SammyJ]

I wanna buy electronics to resell. He says he has a wholesaler/distributor. I know paypal holds the money until I get the items but still its a lot of money and i am a little nervous that something could go wrong.

[be47320]

i would be extremely skeptical if you dont know the guy

[JDSilk]

I would only do something like this if I had a credit card with a major bank (BofA, Chase, ect) and could make the most direct purchase with him possible. Because their claims department will pound the pavement heavier than anyone out there and they usually issue instant credits while they investigate.

If hes a "major" distributor, he should be able to afford a CC machine.

[SammyJ]

so you're saying you would trust the credit card company more than paypal?

[JDSilk]

Originally Posted by SammyJ

so you're saying you would trust the credit card company more than paypal?

Pay Pal vs. Bank of America/Chase/ect.... I am putting my faith in the major banks to handle fraud claims than Pay Pal, but then again I guess thats just my upbringing.

[SammyJ]

Hmm...thats something to think about. Do you know if debit cards offer the same fraud protection as cc? I appreciate the help guys

[pittviper]

You won't get screwed sending the money .. if he sends you the product.

If his account has been opened for only a month and he receives this transaction, his account may be freezed though. They protect the person sending the money. Case in point:

Last year I opened my paypal account, verified all my information. Waited two weeks then started having fairly big payments coming to my account. After it reached the thousands, paypal froze my account and made me verify a few other things. Since I have a house in Ottawa and Hamilton, and they asked for a phone number .. I gave the Ottawa number. They saw it didn't match with any Hamilton address, or so they say, and froze my account for six months. My only options to withdraw the money were to return it or wait six months. I spent weeks trying to get at them to get my account unfrozen but they throw you around to so many different paypal representatives and you never get to speak to someone who can really do anything. Sorry not 6 months, 180 days.

After that I was able to withdraw fine. The only issue you have is with the sender, sending the paypal. You have paypal confirmation and if you pay on your credit card through paypal there is already a 6 month guarantee on your paypal transaction .. Pay pal has a one month guarantee that you will get your payment back if he doesnt send the product. If you file a complaint within one month, he will either have to explain himself and send the product or return your money.

BOL
PV

[ZoomVT]

jdsilk is right. you are better off using a visa/MC brand credit card; preferably a large bank like he said.

DO NOT USE DEBIT

there is basically no fraud protection on debit.

a major bank will definitely do more for you than paypal will. transaction fees on paypal are also much smaller than CC machine; so its a benefit for whoever is paying the 3% fees.

and like said above, if he is a major distributor he must have a CC machine; if he doesnt then buyer beware

[JDSilk]

Originally Posted by SammyJ

Hmm...thats something to think about. Do you know if debit cards offer the same fraud protection as cc? I appreciate the help guys

Well... back in august, i actually had someone withdraw 700 bucks from my b of a account from a chase atm. However, I still had my debit card in my possession the whole time. Bank of America issued me a temporary credit then resolved my claim within 7 days and never had a follow up on the case. I am not sure the matter would have been handled that quickly had I belong to a smaller institution.

However, as ZoomVT said above. Debit cards dont have the same protection as credit cards. A credit card is the banks money, whereas a debit card is your own money. Banks have more motive to go after their own money (credit cards) than money that should be in your own bank account. That was my only fear when someone took $700 from my account.

I have also had times where I forgot to cancel memberships on my credit card, would tell bank of america I canceled before I should have been billed, and they usually get a reversal with very little turbulence. Most of the times these big banks just want to keep the customer happy and make money regardless. And a lot of times they can bully smaller banks/companies in claims.

On top of that, I think I read Bank of America made 25-38 million dollars on customers overdraft fees alone last year. So they definitely got room to let things slide even if they dont win claims. And thats excluding interest they make on credit cards, late fees there, mortgages, personal loans, student loans, car loans, you name it (lol)

http://www.politicsdaily.com/2009/11...fee-survivors/

[ZoomVT]

Originally Posted by pittviper

You won't get screwed sending the money .. if he sends you the product.

If his account has been opened for only a month and he receives this transaction, his account may be freezed though. They protect the person sending the money. Case in point:

Last year I opened my paypal account, verified all my information. Waited two weeks then started having fairly big payments coming to my account. After it reached the thousands, paypal froze my account and made me verify a few other things. Since I have a house in Ottawa and Hamilton, and they asked for a phone number .. I gave the Ottawa number. They saw it didn't match with any Hamilton address, or so they say, and froze my account for six months. My only options to withdraw the money were to return it or wait six months. I spent weeks trying to get at them to get my account unfrozen but they throw you around to so many different paypal representatives and you never get to speak to someone who can really do anything. Sorry not 6 months, 180 days.

After that I was able to withdraw fine. The only issue you have is with the sender, sending the paypal. You have paypal confirmation and if you pay on your credit card through paypal there is already a 6 month guarantee on your paypal transaction .. Pay pal has a one month guarantee that you will get your payment back if he doesnt send the product. If you file a complaint within one month, he will either have to explain himself and send the product or return your money.

BOL
PV

not true.

they freeze the funds but they wont give them back to him.