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Beware of Paypal

Beware of Paypal.... ... We have been selling on ebay for more than 10 years. We run an honest business and try extremely hard to do the right thing by our customers. Paypal is a huge monopoly and their only reason to exist is to make money and as much money as they can... We recently sent an item to a customer, via tracking and signature on delivery. Paypal will only ever investigate a claim if you have sent an item this way. If you send an item without tracking AND signature, they will brush you off and say  "bad luck" you haven't complied with our policies. BUT, even if you do, they will do everything they can to avoid accepting any claim under their "Seller Protection Policy". (For those of you who don't know what this is. Paypal offers buyers and sellers - "Buyer Protection Policy & Seller Protection Policy). This basically means that as a buyer, if you don't get your item in the mail or if it isn't as described, you will get a refund of your purchase price if you make a claim with Paypal. They advertise this in a nice fluffy way, but what they don't say is that it is not out of their pocket! Any claim made by the buyer automatically gets taken out of the sellers paypal account, so the SELLER is paying for this 'protection policy" not Paypal. Paypal will ALWAYS side with the buyer, no matter how much information you supply to them, should you make a claim. We recently had a customer lodge a dispute saying they never received the item, even though the online tracking said otherwise. Paypal almost immediately agreed with the buyer and took the purchase price FROM our paypal account & give it back to the buyer. We disputed this - told Paypal that the online tracking showed the item had been delivered AND signed for. Paypal's response? Stiff! We still don't agree. We subsequently gave paypal a copy of the signature of the person who signed for the item, including their name, as given to us by Australia Post. This was the name and signature of the buyer who originally said they didn't receive the item. STILL Paypal said no! We wrote back to them saying that they were in breach of their own seller protection policy. The still said no. After much research, we found out that Paypal (in Australia) is a signatory to the Financial Service Ombudsman Complaints service. We subsequently wrote an official complaint to the Ombudsman outlining our complaint and issue with Paypal and felt that we were in the right to make a claim against Paypal's Seller Protection Policy and that we had complied with all their conditions under that policy. The Financial Services Ombudsman forwarded our complaint to Paypal, who... surprise surprise, suddenly 'reversed' their decision and gave us our money back. After this 'win' with Paypal, what did they then do? FROZE OUR ACCOUNT! Obviously we annoyed them.....What we are saying here is be VERY CAREFUL when dealing with Paypal. DO NOT let money build up into your Paypal account. Withdraw the money as often as you can. Do not accept their decision as final if you know you are in the right, take them on. AND just so that you know, did you know that once you post an item with Australia Post, it becomes THEIR PROPERTY? What does that mean? Well, in a nut shell, if you post anything with Australia Post, and it gets lost of damaged, THEY WILL NOT PAY YOU ANY COMPENSATION, unless you have paid for optional insurance when you post the item. We think that this is SO WRONG, but apparently it is the law. Also, it is just extremely unfortunate that in Australia, ebay does not let people use any other credit card payment system apart from Paypal. The legalities of that system is a conversation for another time....


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