Payment I Received Was Reversed By The Buyer’s Bank...

[MorrisMinor]

Had an email from paypal this morning saying the following and I am furious about it.  Initial paymant / transaction went through fine and the buyer picked up the item in question as arranged.  I am now in negative balance on my account.  This has never happened before.  Surely I haven't been a victim of theft.  What can I do about this?

"We were recently notified that a payment you received was reversed by the buyer’s bank. A bank reversal can be requested by the bank itself or the bank account holder.  We have placed a temporary hold on the funds until our inquiry is complete."

[PayPal_david]

Hi there MorrisMinor,

It sounds to me that there has been an issue with the payment processing from your buyers bank account. In my experience, the most common reasons as to why this may happen is that when we sent notification accross to your buyers bank, they may not have had the full amount of the transaction in their bank account and as a result, the payment was rejected.

If you have been asked to provide us with any information regarding the transaction, you can provide this through your account and we can look in to it further for you.

You may also wish to contact your buyer directly for more information in regards to the payment failing from their bank account.

David.

[MorrisMinor]

Thanks for that.

I got the impression that the buyer simply retracted the payment so that they could have what they 'bought' from me for free.  I have proof via eBay feedback that the buyer received the item...although it was picked up by hand by them.

My confidence in eBay and Paypal has been shaken big time.  I am now wondering how many other customers will try to reverse their payments...hopefully none.

In future, all transactions will have to be posted recorded/signed and the buyers will have to foot the bill.  Really cheesed off about all this.  It appears that sellers have no rights whatsoever.

[luckyvsh]

Moderator,

You should be a politician. You havent answered his question.

I am currenty experiencing this problem, and am concerned that If Paypal cannot obtain the money from the buyer, then I will pick up the cost.

In what way does Paypal Protect us from this apparant fraud. I know what is happenning. You are taking the money by Direct debit as its the cheapest method for you, regradless if you know if the buyer has sufficient funds. D/Debit is then cancelled by buyer, leaving this situation.

We need reassurance that the money wont be charged back by yourselves. "Safe and easy"  arent you?

SIMON JONES

[MorrisMinor]

I agree.  I have done another response to you...but it is all out of sequence...sorry.

[PayPal_john]

To be honest, the PayPal system is not really designed to be used in fact to face interactions. The whole point is that you don't see the person. If you meet up in person then you should should maybe consider paying in cash or maybe a direct transfer in a bank.

PayPal does not offer Seller Protection on items picked up in person so if you're selling an item you really should be aware of this.

[MorrisMinor]

Ok...well I have learn't that lesson...no more 'pick ups' through Paypal.

Tell me, is the only way for a seller to protect themselves against 'reverse payment', is for the seller to always use 'recorded signed'?

[PayPal_john]

Hey,

that's certainly the most secure way but it's not always essential. I'd advise running through the Seller Protection Policy, a proof of postage will protect you against unauthorised payments (as in, where the account holder or card holder did not make the payment) but if the payment was authorised and the account holder says they did not receive the goods then proof of delivery is required.

Really you have to make your own decision on whether you are willing to take the risk of not sending an item recorded delivery or not.

[MorrisMinor]

Thanks for all that.  

I always get proof of postage, but will now do recorded delivery to, the cost of which will have to be past to the buyers.  I just want to pretect myself 100%.

This 'pick up only' purchase sorted out via Paypal has really rocked my confidence.  I suppose I need to remember that most people are honest though.

[PayPal_barry]

Hey there, experiences like the one you have had are painful. They can however make you a better seller if the right lessons are learned. For yourself and the other sellers out there, here is a summary of our Seller Protection Policy.

First of all make sure you're item is 'Eligible' for Seller Protection by checking the transaction 'Details'

Retain online trackable proof of delivery, like Royal Mail's recorded delivery (We require online tracking to confirm delivery)

Send the item to the address on the transaction 'Details' page

Provide a copy of the proof of shipping of the parcel (This helps us ensure that the parcel has been sent to the right address)

Where the payment is £150.00 or more we need the recipient's signature, if the buyer claims the item wasn't received

Send the item within seven days after you receive payment

Only accept payments in full from a single PayPal account

Respond to our requests for documentation and other information within the given timeframe

To learn more about PayPal’s Seller Protection Policy, click ‘Legal Agreements’ at the bottom of any PayPal page, and then click ‘User Agreement’.