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Thu Nov 26 2015 17:18:10

Beware of Selling on eBay Using PayPal, Reporter Warns

By: Ina Steiner

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Even a consumer advocate for a TV news station couldn't get PayPal to reverse a chargeback for a local Las Vegas woman. The reporter presented PayPal with evidence she gathered over the course of months, but reported that PayPal's user agreement "overruled any evidence she uncovered."

The woman had sold a boat on eBay in May and said the buyer had inspected the boat before purchasing it and had used the boat all summer, then filed a chargeback claiming the boat was a lemon.

PayPal decided in favor of the buyer and demanded the $8500 back from the seller (not surprisingly, she had already spent it). 

While PayPal was the entity that the reporter dealt with, the story really looks bad for eBay, and the reporter was pretty clearly warning people about the risks of selling on the marketplace. 

The story from 8 on Your Side via LasVegasNow.com kicked off with the warning, "Beware, your next transaction could turn into a nightmare," and ended with this warning:

"The take away for you is simple. If you sell on EBay and use PayPal you may be responsible for any and all chargebacks filed in the transaction. Be sure to review the policy careful before you engage in your next transaction."

And while the warning was for sellers, it's likely that any consumer watching the report would be wary of transacting on the site.



Comments (35) | Permalink

Readers Comments

Perminate Link for Beware of Selling on eBay Using PayPal, Reporter Warns   Beware of Selling on eBay Using PayPal, Reporter Warns

This user has validated their user name. by: iheartjacksparrow

Thu Nov 26 21:56:03 2015

And this is exactly why no one should sell anything of value on eBay. I just hope the "liar buyer" didn't strip parts that he needed from the boat. Hopefully, this story will be picked up by other media outlets and will get nation-wide coverage.

I just wish the article would have named the buyer so other sellers could be forewarned of possible issues.

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by: JQ This user has validated their user name.

Thu Nov 26 22:57:43 2015

I have seen several major media reports of this same nature over the last two years. They all have the same bottom line. Ebay/Paypal provide no meaningful seller protection in any cases.

Ebay/Paypal abandoned their responsibility of providing any form of meaningful seller protection a few years ago. All sellers on eBay have to rely on the honesty and good will of their clients because if they run into a dishonest buyer in no case can they expect eBay or Paypal to do anything at all for them, even in the most blatant instances. I know from first-hand experience.

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by: pace306 This user has validated their user name.

Thu Nov 26 23:27:36 2015

FINALLY an outsider understands what we sellers go through 24/7 on eBay!

Will it help? Doubtful. And if hte story gets too big, eBay will step in and pretend to do the seller a "favor" and help them out - all to simply garner postive press.

1) Paypal isnt a bank. They are simply a CC processor and carry little to no weight when it comes to CC chargeback issues. At the first sign of an issue, Paypal circles the wagons to protect THEMSELVES via a settlement with the buyer and his/her bank. That makes them a dishonest broker since they can NEVER be fiar and things cant ever be "even".

2) Paypals entire game is a 3 card monte shell game. Just watch the little lady and HOPE all goes well. If you are lucky - you can win ... your own money back. Paypal has a factor, an insurance company that backs all the fraudulent activity. Like a factor on a delinquent account, the company that works with Paypal bets AGAINST the seller. If the seller "wins" then the insurance company has to pay out to cover the measly "seller protection". If the seller LOOSES, then the insurance company gets to keep the funds and the %2 vig. Paypal (again) cant ever be "an honest broker" nor can it be a level playing field as they "bet" and do EVERYTHING in their power to make sure the insurance company/themselves and the buyer win. Too many losses and the factor simply says "bye bye" (or raises Paypals rates).

3) eBay ...... the guys that make La Costra Nostra look like choir boys, have simply (as said so well above) absolved themselves of ANY responsibility in any area. From picture theft from other sellers to returns to chargebacks - call eBay and ask them - they have lots of rules - for you the seller. YOU shoulder all the responsibility - for everything.

They arent your partner (DUH TOOLGUY) they are simply a website that lists goods and they ONLY look out for themselves ... NEVER for you, ever.

This women needs to get an attorney and sue all 3 idiots. Problem is ... Paypal and eBay will trot out documents signed by her (shrinkwrap license) that "lets them" do as they please since "you agreed to it" You basically agree(d) to let your self be taken advantage of.

I do hope it goes viral, but I dont expect eBay to change anytime soon.

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This user has validated their user name. by: Rexford

Fri Nov 27 07:14:32 2015

I've been hit recently as well by a liar buyer running to PayPal after eBay ruled a case in our favor.

Thankfully it was not for a large amount of money.  I hope this reporter gets a good attorney and keeps her story  out there publicly.  PayPal is going too far.

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by: rhawk This user has validated their user name.

Fri Nov 27 10:17:32 2015

1) The seller should have never, NEVER, allowed the full payment thru paypal.  Accept a small deposit via paypal, and then cash balance in person.

2) Have terms of inspection and acceptance of vehicles condition in the listing.  This is important in case of legal actions.

3) Have buyer PERSONALLY inspect vehicle, and have them sign an "as is" bill of sale.

This seller will have no problem winning this case in court....she will probably even get  a 6 months use rental fee back as well, and paid for any damages to the boat during its use.

Sellers need to do everything to protect themselves from buyers.  Do not assume ebay or paypal will do it for you.  

Perminate Link for Beware of Selling on eBay Using PayPal, Reporter Warns   Beware of Selling on eBay Using PayPal, Reporter Warns

This user has validated their user name. by: toolguy

Fri Nov 27 10:23:08 2015

The Golden Rule for local pickup

NEVER TAKE PAYPAL ~ CASH ONLY

Perminate Link for Beware of Selling on eBay Using PayPal, Reporter Warns   Beware of Selling on eBay Using PayPal, Reporter Warns

by: gizmo This user has validated their user name.

Fri Nov 27 10:25:02 2015

Theres only one way to deal with liar buyers , its made of aluminum.

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This user has validated their user name. by: toolguy

Fri Nov 27 10:50:04 2015

@ gizmo

I was thinking more in the lines of copper coated lead. . .

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This user has validated their user name. by: windsorbear

Fri Nov 27 12:49:15 2015

I have added the Channel 8 news story and video to my Facebook page and asked everyone to share it and make it go viral.  I suggest all readers of this page to do the same.  The moral widespread this becomes, the more likely eBay and/or PayPal will do one of two things... either change their TOS to appease the buying and selling public, or throw in the towel, close their sites and run off with the money before the feds come after them.

Perminate Link for Beware of Selling on eBay Using PayPal, Reporter Warns   Beware of Selling on eBay Using PayPal, Reporter Warns

by: DingDong This user has validated their user name.

Fri Nov 27 13:01:18 2015

I would get the General Attorney involved.
Keep all your documents and other proof.
If you blog, I would use the ebay ID of Buyer, their name and city/state and blog what has been done. There is also a BadBuyersList you can list on. As long as I know I am in the right with the evidence, this is what I would do. Let people/ sellers/ employers know.

If there is a court judgement or something has satisfied the problem, amend it with the conclusion. Be Honest when doing this.

Perminate Link for Beware of Selling on eBay Using PayPal, Reporter Warns   Beware of Selling on eBay Using PayPal, Reporter Warns

This user has validated their user name. by: Ming the Merciless

Fri Nov 27 14:12:17 2015

If everyone who reads this blog and wants more payment options would contact this reporter with their horror stories, the fact that many are compelled to use PayPal, and the sweetheart deal The Ho negotiated with PayPal prior to his 'departure' to PayPal, the story could get a lot bigger and attract more attention.

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by: Santini This user has validated their user name.

Fri Nov 27 17:33:00 2015

Sounds like an easy-peasy way to get yourself some nice big ticket items free of charge! Just ask if they take paypal and use it through your credit card!

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This user has validated their user name. by: The End

Fri Nov 27 17:41:45 2015

Ebay is a mess.
All of my favorite categories are very low on selection. And collectibles is weak.
There's nothing there that hasn't been listed since last year.
Very very poor....and WAY over priced.
It's a sad Christmas at Ebay.

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by: comments This user has validated their user name.

Sat Nov 28 01:17:12 2015

Was some of the story left out? Why did the buyer not go to the police? Creditcard companies just willie nilly hand back money unless the buyer made a good faith attempt to return the item. The seller should prosecute the buyer or sue them.

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This user has validated their user name. by: toolguy

Sat Nov 28 10:02:24 2015

@comments

"Why did the buyer not go to the police?"

Why would the "buyer" go to the police?

I can see why the "seller" might call but not the buyer.

PS: A common error I see on threads here and on eBay's community boards is that people seem to be confused who the SELLER and BUYERS are.

Perminate Link for Beware of Selling on eBay Using PayPal, Reporter Warns   Beware of Selling on eBay Using PayPal, Reporter Warns

by: TomH This user has validated their user name.

Sat Nov 28 12:38:29 2015

@ rhawk

Has it correct.

Selling a 8000+ dollar boat via PayPal? The seller was a bit dense. Perhaps the reporter left out a lot of detail. But if not, then you just do not sell a boat via a credit card without a bunch of save your ass paper work as rhawk mentions.

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This user has validated their user name. by: Rexford

Sun Nov 29 11:29:46 2015

Does anyone have the reporter's contact details? I would like to thank him/her for going public with this story.

Perminate Link for Beware of Selling on eBay Using PayPal, Reporter Warns   Beware of Selling on eBay Using PayPal, Reporter Warns

This user has validated their user name. by: windsorbear

Sun Nov 29 12:25:22 2015

Rexford, the reporter's name is Michelle Mortensen.  She works at the CBS affiliate in Las Vegas.  Her email contact there is mmortensen@8newsnow.com .

Perminate Link for Beware of Selling on eBay Using PayPal, Reporter Warns   Beware of Selling on eBay Using PayPal, Reporter Warns

by: moto-science This user has validated their user name.

Sun Nov 29 14:27:55 2015

Look at the response from Paypal....?
chirp, chirp, chirp........crickets !

This is what we pay government for.....to
make fairness in the market when private enterprise  totally fails.

Perminate Link for Beware of Selling on eBay Using PayPal, Reporter Warns   Beware of Selling on eBay Using PayPal, Reporter Warns

This user has validated their user name. by: LasVagueness

Mon Nov 30 00:30:11 2015

COLD HARD CASH ONLY for local pickup (cars/boats/appliances/electronics/bulky items). No credit, and NO PAYPAL. Not now, not ever. I'm surprised to hear the seller accepted PayPal...why?

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