Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Sat Sept 5 2015 23:48:19

The Irony of PayPal's Error Resolution Policy

By: Ina Steiner

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PayPal forces sellers to provide a luxurious 6-month window to buyers to change their minds about a purchase, a very long time to try out a product and discover it wasn't what you wanted after all.

But the online payment service gives sellers only 60 days to inform it of an error on a statement.

PayPal just sent out a "Notice of Policy Updates that includes the "Annual Error Resolution Notice" provision. Here's the fulltext of the email:

Dear (NAME),
We are making some changes to the PayPal User Agreement that will go into effect on October 30, 2015. If you're interested in all the details, take a look at our Policy Updates Page. Here are the highlights:

- We revised Section 3 to make it clear that our send money functionality requires that the person receiving funds create a PayPal account in order to receive the funds.

- Person to person payments will not be available for payments sent from Puerto Rico after October 30th.

These changes will be effective on October 30, 2015 for all U.S. users.

We are also sending you a copy of our Error Resolution Notice below to provide helpful information if you have a billing error or unauthorized transaction on your Account. Just remember that you can check out our Error Resolution Notice anytime by going to Section 12 of the PayPal User Agreement.

As always, if you need help or have any questions, give us a call or visit our Help Center. You can find the link on any page of our website.

Thank you for being a PayPal customer.

Sincerely,

PayPal

ANNUAL ERROR RESOLUTION NOTICE
The purpose of this notice is to provide you with important information about reporting errors in payments made using PayPal's services. You should keep this notice for future reference.

What to do About Questions or Errors with Your Transactions.
You should notify PayPal as soon as you can if you believe:
• your account statement (you can access your account statement by logging into your account) or your transaction confirmation (which is sent to you via email) is wrong;
• you need more information about a transaction listed on the statement or transaction confirmation; or
• there has been an unauthorized transaction, other error or unauthorized access to your PayPal account.

You must notify us no later than 60 days after the error FIRST appears in your account statement. We will extend the 60-day time period if a good reason, such as a hospital stay, prevented you from notifying us within 60 days.

For any type of error, you can telephone PayPal Customer Service at (402) 938-3614. You can also notify us in writing or online by following the instructions below.

If the transaction does not involve a PayPal debit card, notify us by either:
• Using the form available in the PayPal Resolution Center to file an unauthorized transaction report, or
• Writing to PayPal, Attn: Error Resolution Department, P.O. Box 45950, Omaha, NE 68145-0950.

If the transaction involves your PayPal debit card, notify us by either:
• Logging into your PayPal account, going to the "Account Overview" page and selecting the transaction details for the transaction you wish to dispute. Then follow the directions provided for disputing the transaction; or
• Mailing the Written Statement of Disputed PayPal ATM/Debit Card Transactions Form or other notice to PayPal, Attn: PayPal Debit Card Department, P.O. Box 45950, Omaha, NE 68145-0950, or faxing it to 303-395-2855. A link to the form can be found with the directions provided for disputing the transaction as noted above.

If you notify us orally, we may request that you send us your complaint or question in writing (by following the notification procedures described in the paragraphs above) within 10 business days of providing us the oral notice.

When you notify us (orally or in writing), provide us with the following information:
• Your name and email address you used to register your account, and
• A description of the suspected unauthorized transaction or other error and an explanation as to why you believe it is incorrect or why you need more information, and
• The dollar amount (and if possible, the date) of the suspected unauthorized transaction or other error.

During the course of our investigation, we may request additional information from you.
Once you notify us of a suspected error, we will investigate your complaint or question within 10 business days (or up to 20 business days for new accounts – accounts that have 30 days or fewer since the date of their first transaction). If we need more time, we may take up to 45 days to complete our investigation (or up to 90 days for new accounts, point of sale or foreign initiated transactions).

If we decide that we need more time to complete our investigation (as explained directly above), we will provisionally credit your account for the amount of the suspected error. You will receive the provisional credit within 10 business days of the date we received your notice (20 business days for new accounts). This will allow you to have use of the money until we complete the investigation. If we ask you to put your complaint or question in writing and we do not receive your written complaint or question within 10 business days (or 20 for new accounts), we will not provisionally credit your account.

We will inform you of our decision within three business days after completing our investigation. If we determine that there was an error, we will promptly correct the error. If you have already received a provisional credit, you will be allowed to retain those funds. If we decide that there was not an error, we will include an explanation of our decision in our email to you. If you received a provisional credit, we will remove it from your account. You may request copies of the documents that we used in our investigation.

For this purpose, our "business days" are Monday through Friday. Holidays are not included as business days.




Comments (24) | Leave Comment | Permalink

Readers Comments

Perminate Link for The Irony of PayPal's Error Resolution Policy   The Irony of PayPal's Error Resolution Policy

by: comments This user has validated their user name.

Sun Sep 6 05:06:50 2015

I don't agree with paypals policies and so I avoid using them everywhere. It is true they monopolize ebay payments and so we are forced to accept them there. But elsewhere is a different story. I accept amazon payments on all other venues and my buyers have no problem with that. Paypal's monopoly is on ebay only. As a seller I still choose what payments I will accept elsewhere. Also when I am a buyer I tend to avoid paypal at checkout wherever possible because of the poor treatment I get as a customer. My credit cards provide me with more then adequate protection regardless of the processor I pay with.  

Perminate Link for The Irony of PayPal's Error Resolution Policy   The Irony of PayPal's Error Resolution Policy

by: Volvo351 This user has validated their user name.

Sun Sep 6 09:01:14 2015

Typical double-dealing from The Hoe: "Do as I Say, NOT as I Do [to YOU!]"

PayPig is the most dangerous form of "payment" I've ever taken. I now avoid it whenever possible.

Also, funny that they won't let PR's "Send Money" anymore; is that because the island is a total bust-out to the tune of $72B?

Perminate Link for The Irony of PayPal's Error Resolution Policy   The Irony of PayPal's Error Resolution Policy

This user has validated their user name. by: Ric

Sun Sep 6 10:16:51 2015

Typically, PayPal management is tone deaf to the inconsistencies of the policies designed to stack the deck against their customers.

If your customer disagrees with a purchase for any reason PayPal affords them 180 days to dispute their purchase or change their minds.

On the other hand, if PayPal's customer ( buyer or seller) finds that PayPal has made an error in a transaction, they will only afford that individual 60 days to file their dispute.

Once again, A John Donahoe led company stacks the deck to the advantage of the corporation and to the detriment of their customers.

If as PayPal believes, buyers need 180 days to dispute a transacton, why then is that same time frame not afforded by PayPal to their customers when the company makes an error?

Perminate Link for The Irony of PayPal's Error Resolution Policy   The Irony of PayPal's Error Resolution Policy

by: I Must be Crazy This user has validated their user name.

Sun Sep 6 11:30:50 2015

Paypal is not a bank, and I assume they aren't a licensed lender. Therefor I doubt they are insured against fraud losses as a typical bank or credit provider would be. That said, I suspect the REAL bank and creditor behind Paypal allows them a fixed period of time, likely less than 90 days. That said, if Paypal extends it further, they eat the losses. In the case of the 180 day guarantee, the sellers are on the hook for that one. Paypal loses nothing.

Perminate Link for The Irony of PayPal's Error Resolution Policy   The Irony of PayPal's Error Resolution Policy

This user has validated their user name. by: Rexford

Sun Sep 6 11:43:00 2015

Rest assured that if the money came out of PayPal's pocket there would be no 180 return policy.

I hope that I live to see the day that this company goes down, and JD in jail.

Perminate Link for The Irony of PayPal's Error Resolution Policy   The Irony of PayPal's Error Resolution Policy

by: Massachusets Howler This user has validated their user name.

Sun Sep 6 12:28:45 2015

Gee,

As ebay gets kinder and gentler JD and PP get meaner and rougher.

It all evens out to the same ol' same ol'.

:-) MB

Perminate Link for The Irony of PayPal's Error Resolution Policy   The Irony of PayPal's Error Resolution Policy

by: Massachusets Howler This user has validated their user name.

Sun Sep 6 17:43:35 2015

(And let's not forget that with 180 day returns you won't even be able to SEE your data anymore to fight).
MH

Perminate Link for The Irony of PayPal's Error Resolution Policy   The Irony of PayPal's Error Resolution Policy

by: pace306 This user has validated their user name.

Sun Sep 6 19:00:49 2015

Howler :)

Its the continued game of good cop / bad cop.

It used to be eBay was bad and Paypal was good - now its "rol reversal".

Like the magnetic poles that move every 6 thousand years and other natural changes - it will switch back when they want it to!

Its ALL a con game - always was, always will be.

Perminate Link for The Irony of PayPal's Error Resolution Policy   The Irony of PayPal's Error Resolution Policy

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

Sun Sep 6 21:36:48 2015

When The Ho completes ebayizing PayPal, PayPal go go the way of ebafia -- a rapidly dwindling customer base, decreasing profitability, and a lot of very bad press.

How many millions will they give him after he's ruined it to leave PayPal?

Perminate Link for The Irony of PayPal's Error Resolution Policy   The Irony of PayPal's Error Resolution Policy

by: SparklyEyes7 This user has validated their user name.

Mon Sep 7 00:55:07 2015

I recently shipped an item Fedex and when it showed on my eBay statement, they added an additional $12+ for address correction.  If PayPal is supposed to verify addresses, shouldn't they be the ones who eat the cost?

Perminate Link for The Irony of PayPal's Error Resolution Policy   The Irony of PayPal's Error Resolution Policy

by: gizmo This user has validated their user name.

Mon Sep 7 02:09:02 2015

Jeeze , make a major clean out of everyones account & hide behind their policy , & collect interest. Ooops ,sorry , a failure beyond our control. But our stocks came up this quarter.  Crooked to the core. Stinks , stinks , stinks !

Perminate Link for The Irony of PayPal's Error Resolution Policy   The Irony of PayPal's Error Resolution Policy

This user has validated their user name. by: FEEbay

Mon Sep 7 07:39:39 2015

180 days.... raised fees.... I have already pulled Paypal from the websites and another marketplace, so they have already lost revenue from us.
Nobody cares whether you offer Paypal or not. In fact, most customers do not like Paypal. Once we rid ourselves of Ebay for good, we will also rid ourselves of Paypal as well...Screw these two crooked companies

Perminate Link for The Irony of PayPal's Error Resolution Policy   The Irony of PayPal's Error Resolution Policy

by: Volvo351 This user has validated their user name.

Mon Sep 7 08:12:57 2015

@Ming

The Hoe made sure, via his patently illegal "joint operating agreement" that he'd get plenty of Vig from feeBay sellers. An FTC or DOJ capable of doing its job would step in to stop this blatant Restraint of Trade. Unfortunately we have The Hoe's wife working for King Barry so that's not gonna happen.

Perminate Link for The Irony of PayPal's Error Resolution Policy   The Irony of PayPal's Error Resolution Policy

by: Volvo351 This user has validated their user name.

Mon Sep 7 08:15:00 2015

@Sparkyeyes

Sounds as if you paid for shipping via PayPig. You would have been better off handing the FedEx clerk CASH over the counter.

Perminate Link for The Irony of PayPal's Error Resolution Policy   The Irony of PayPal's Error Resolution Policy

by: SparklyEyes7 This user has validated their user name.

Mon Sep 7 10:48:26 2015

@Volvo351

But it was Fedex who decided that there was an error in the address and charged me more.

But if PayPal was supposed to verify the address and it's now incorrect, shouldn't they be eating this surcharge?

Perminate Link for The Irony of PayPal's Error Resolution Policy   The Irony of PayPal's Error Resolution Policy

by: Tornad0sRul This user has validated their user name.

Mon Sep 7 11:40:21 2015

I have pretty much stopped selling on EBay and my EBay store is almost to the point of shutting it down completely with just a few items left, so I don't read this as much as I used to.  But right now I am shocked about what I am learning.

I read the article about the seller who sold an empty Cuban cigar box and Paypal shutting down their account over the holiday weekend, which would infuriate me because of all of the lost sales, and now I see this article above about Paypal's new return policy which resembles EBay's return policy.  Then I noticed a comment about Donahue going to Paypal and it all makes sense now, but it really makes no sense at all.  Who in their right mind would take on Donahue as an employee when he botched EBay so badly?  Especially Paypal who worked so closely with EBay all of these years and knows full well the disaster that EBay has become.  It doesn't make sense.  Either the head of Paypal is as stupid as a box of rocks or there is something more sinister going on such as Donahue has some form of financial or political hold on Paypal for some reason.  Otherwise I don't know a wise businessman alive who would hire the head of a failing company to head their company and it makes no sense why Paypal would do that.  Especially since I now see Paypal to be mimicking EBay. Donahue's fingerprints are all over these new Paypal problems.  It's like so obvious that I'm dumbfounded about what is really going on with EBay and Paypal, but I know one thing is for sure, I am separating myself from both of them and I don't want any part of those companies since seeing and experiencing firsthand the ineptness and corruption.  I wouldn't touch either company with a ten foot pole.

Perminate Link for The Irony of PayPal's Error Resolution Policy   The Irony of PayPal's Error Resolution Policy

by: Tornad0sRul This user has validated their user name.

Mon Sep 7 11:50:14 2015

In the past 6 years I have only had to call Paypal a couple of times but I clearly remember that not only did the customer service representative sound 100% like they were in the United States with no accent whatsoever, they handled my problems with the care and professionalism that was absent at EBay where the representatives were in another country and I could barely understand their chopped up English.  Since learning that Donahue is now at Paypal and seeing Paypal starting to behave just like EBay, I am guessing that soon Paypal will have their customer service outsourced overseas just like EBay.  One commentor is right about Donahue.  There is something wrong with him.  I have learned a great deal about those with "Narcissistic Personality Disorder" often being at the top of businesses and corporations wreaking havoc on people every day and this may be one of them.  ;)  Soon it will be exposed that these types of people are harmful and damaging to society in many ways and they will be ostracized and placed at the bottom of the ladder where they belong.

Perminate Link for The Irony of PayPal's Error Resolution Policy   The Irony of PayPal's Error Resolution Policy

by: Steevo This user has validated their user name.

Mon Sep 7 13:03:12 2015

It makes sense for everyone to just stop taking Paypal at all, then you maintain control, and everyone has to come to you and ask.  Ebay would have to ask. They cannot unilaterally give a refund.

We are not trying to rip anyone off, so it would not matter.  

Perminate Link for The Irony of PayPal's Error Resolution Policy   The Irony of PayPal's Error Resolution Policy

by: serioussellers This user has validated their user name.

Mon Sep 7 23:25:03 2015

PayPal's evil twin has a new (at least to us) error resolution policy of its own.

If a buyer clicks on the wrong price to make an EB purchase (even tho' we reduced the ''published'' list price for them they clicked on the counter offer price - which was higher - that they had rec'd from us days before). EB said that to avoid their losing the item in a cancellation/relisting process (when someone else might jump in & buy it before the newbie buyer had another chance to click the correct button), they needed to pay the higher price.

We were told to then refund them the difference, & then we were to call EB back so the difference in the FVF could be credited to us. They, of course, said to communicate all of this to the buyer through EB messages, so there would be a paper trail.

When we called back for the FVF credit to be processed ''manually'' we were told that sellers are now only permitted to get a FVF credit (if a buyer made a mistake - which EB corrected by having the seller issue a partial refund) 1 time within 18 months.

We were told that one of our buyers had made a similar mistake in July 2014 (& that EB had adjusted the FVF we were charged), but the CSR could not tell us what transaction had used up our ''allowance''.

So EB would now sadly (for us) have to keep/collect the full FVF for the pre-correction price in this transaction. The buyer got a cheaper purchase price, & EB rewarded itself for the buyer's error by keeping the full FVF initially charged.

PP did automatically refund the difference in their own fees. EB refused to issue a FVF credit to us even though we had just precisely followed their instructions for remedying the situation.  Allegedly the CSR's supervisor also refused (when we were put on hold while the supervisor was supposedly consulted), & the CSR had us then go through the motions of appealing the adverse decision.

Only one buyer error can be ''fixed'' (when a FVF credit is due to the seller) by EB every year & a half?  THIS IS TRULY INSANE.

Is this a preview of the new surprises/challenges/updates that are about to be announced? Maybe a whole flood of new business constricting ''limits'' will make sure that the final nails are put in the coffins of the remaining tenacious and annoying small sellers.

We were duped by EB's step by step instructions to permit the buyer to end up with the lower/corrected price -- and EB got to make & keep the full FVF for the initial (pre-correction) higher purchase price.

What a deal for the venue that is desperate to raise a lot of quick cash -- after losing so much in an allocation to one person (who was the master puppeteer pulling the strings of the buyer and seller puppets).  

In our recent interaction with the venue's CSRs, EB declared its own reward/bonus for the neophyte (0 FB) buyer's error. Such a reward multiplied by thousands or millions of similar situations yields a huge big bucks bonus to add on to all of the other yields from EB manipulations and magic.

The first CSR who told us how to easily remedy the situation (without potentially causing both buyer & seller more problems by cancelling the transaction) basically lead us into another of this venue's money making (for them) traps!!!

Perminate Link for The Irony of PayPal's Error Resolution Policy   The Irony of PayPal's Error Resolution Policy

by: Jester This user has validated their user name.

Mon Sep 7 23:34:13 2015

There are way to many venues to sell on now and way to many ways to collect money online to impose unreasonable demands on sellers. 30-60 days is plenty of time to return a product sold online.

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