Freelancers Beware of Receiving Payments via Credit Card through PayPal


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slaam

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Aug 29, 2004
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naturespies.blogspot.com
#1
He told PayPal and his credit card company he didn’t get what he paid for, and they initiated the reversal of for one of the largest payments. Without question, or any communication with me, PayPal immediately deducted the funds putting my account into the negative. This is part of their regular practice.


learn from other's experience!
http://freelanceswitch.com/the-busi...ving-payments-via-credit-card-through-paypal/
 

hongsien

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Mar 11, 2002
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#2
He told PayPal and his credit card company he didn’t get what he paid for, and they initiated the reversal of for one of the largest payments. Without question, or any communication with me, PayPal immediately deducted the funds putting my account into the negative. This is part of their regular practice.


learn from other's experience!
http://freelanceswitch.com/the-busi...ving-payments-via-credit-card-through-paypal/
Hi Slaam,

Sorry to hear that! Yes, this is Paypal practice, the problem is that for the credit card companies, the merchant is Paypal and NOT the seller.......so what the credit card comapny does is put payment TO paypal on hold (or reverse) and since paypal doesn't get paid, they deduct it from your account, untill you pay up......

I hope you have some proof that you actually sent out your item?

What I normally do to prevent this, is to open a second paypal account, and transfer all my funds into that other account, so IF they close it, it is empty!

OR, you should immediately transfer all funds into your bank account......

HS
 

shinken

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Jun 9, 2005
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colourdots.com
#6
Good to know. Coz the last time I filed a dispute as a buyer, Paypal kept it open until the seller responded. Power seller from ebay too!
 

creampuff

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Jul 11, 2006
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#7
The example above relates to the provision of a service. The person providing the service didn't have a paper trail to acknowledge that the service was rendered and completed. In the even of a dispute, Paypal needs documentary evidence.

In another context, I sold some photographic items on eBay last year. And I have to say that the few local Singaporean eBay buyers I have encountered have been a nightmare. Two jerks refused to pay after submitting winning the bids. Didn't bother to respond to repeated emails. One did not wish to pay for the shipping cost stated in the listing, while another tried to initiate an "item not received" complaint with Paypal after receiving the item. Fortunately I had documentary evidence to prove that the item was shipped out and buyer acknowledged receipt.

So my tip to those who want to sell to local Singaporean eBayers are as follows:

1) Make sure they pay within the time period. If not, to initiate a deadbeat buyer report.
2) Never agree to self collection. Person can later claim they didn't receive item as the onus is on the seller to prove item was shipped out. Paypal can work against you as in their eyes you could be a deadbeat seller.
 

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