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I have PayPal. Just haven't used it a lot for receiving money.

Now I need to ask a very basic question:

Let's say someone buys something from me via PayPal in a personal transaction. The payment clears (takes up to three days, right?) so I ship it the next day. Who's to say that the person who payed me won't reverse the transaction? Apparently one has up to 40 days to do that.

Please tell me it isn't this simple. :|
 

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It's always a risk. I always check the ebay feedback, or if SOTW, hoW many posts, how long a member etc. Never been burned.
 

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Even if you do that I have been told that paypal can freeze your account.
They can freeze your Paypal account, but they can't go into your bank account without your authorization. That's exactly why you should remove cleared funds asap from your Paypal account.
 

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Grafton alto | Martin Comm III tenor
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I have PayPal. Just haven't used it a lot for receiving money.

Now I need to ask a very basic question:

Let's say someone buys something from me via PayPal in a personal transaction. The payment clears (takes up to three days, right?) so I ship it the next day. Who's to say that the person who payed me won't reverse the transaction?
Paypal won't take the money out straight away, they will freeze it. So the buyer doesn't get it back immediately, provided you can prove you shipped the item, e.g. with a tracking number. If you don't have that then the buyer will get the money after a certain time.

I'm not one for continually clearing out my Paypal account, life is too short. I just take out a lump sum when it gets over a certain amount.
 

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When payment clears, get it the hell out of your Paypal account and into your bank. There's really no reason to leave any balance in your Paypal account.
This doesn't matter though. YES, it gives you access to that $ immediately, but if the buyer still files a dispute, PayPal will just debit your account that amount anyway, until dispute is resolved or decided.

i.e.: You sell a horn for $500....you get the payment. Your PayPal balance = $500. Then you transfer it to your bank. Your PayPal balance = $0.

Then the buyer receives the sax, and files a dispute.

Paypal will debit your PayPal account $500 so your balance will be -$500.
You will not be able to pay with your PayPal account until you transfer or get $ back into it.... so the balance gets back to $0.

So, if you buy a horn while this dispute is open, for $700, and you wanna pay for it w/ PayPal....you have to first get $500 into your account to bring it back to $0, THEN have to fund the add'l $700 purchase via the usual means. So, at least while the dispute is open, you would have to move around $1200 to pay for your $700 purchase.

(I hope this is clear: any $ you use to fund a PayPal payment when your PayPal balance is NEGATIVE...will go into bringing that PayPal balance back to $0...it will NOT go towards the payment you wanna make).

No, they cannot access your bank account...they can't go in and grab money out of your bank account. But they do not need to. Because a dispute on a transaction renders the PayPal account temporarily useless if the disputed amount is sufficient to put the PayPal account into the negative balance.

It is a very effective tool for a buyer dispute. There is a very unfortunate sticky here which has a fair amount of misinformation regarding the dispute process....making it seem like the buyer will always get screwed even if they dispute. NOT the case at all, really. A dispute gives a hella lotta leverage to the buyer...which is sort of as it should be, if they receive an item damaged, not as described, or just don't receive it. Puts the onus on the seller to resolve the issue....because the longer they do not negotiate a solution, the longer their PayPal account remains debited the disputed amount.

While one can argue that this allows abuse and scams by the buyer...I think that is a bit of a stretch, really. Providing you ship the horn with a tracking record and proof of delivery, and are an honest bloke in your item description....the likelihood of someone successfully scamming you via a 'reversal' is pretty low.
... provided you can prove you shipped the item, e.g. with a tracking number. If you don't have that then the buyer will get the money after a certain time.
Exactly. Just cover your bases as a seller. Have tracking and proof of delivery. I also will put the description in a PayPal Payment request...or refer/link to the ad I posted somewhere else.

But, as noted above...you can also do the transaction thru eBay, just as an added precaution. I offer this to all buyers, as long as they pay the additional eFlay fees I will incur.

So the long and short of it is YES...someone can try to abuse the dispute process to get their $ back, but they would have to show their claim to be valid and significant (i.e. horn never arrived, horn arrived damaged, etc.). The aforementioned 2 situations are the strongest for a buyer...once your dispute/argument gets beyond that , like "it got here, it's in playable condition, but it isn't the horn I expected it to be" etc.; that isn't gonna cut the mustard in a dispute situation for the buyer.
 
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