This website is a collection of horror stories, news reports and other information addressing problems with Paypal, Inc..

PayPal Chargeback Ripoff

By Todd

I sold a pair of Definitive speakers for $535.00 on e-Bay and shipped the speakers via FedEx.  I work for a company that receives a 75% discount with FedEx and for us to receive the discount the signature release must be signed at the time of shipping.  I have shipped over 100 packages (some valued over $3200) using this discount without any problems.

Anyway, the recipient claims that the package was stolen from his porch and filed a fraud claim with his credit card company.  PayPal immediately refunded the $535.00 to the credit card company and debited the funds from my account, while PayPal allegedly disputed the chargeback with the credit card company. I don’t believe that PayPal did a damn thing in my interest!  In fact, they automatically assumed that the recipient was in the right and that I was in the wrong.  PayPal stated, that because the signature release was signed by me, that there was no proof that the recipient received the package, which is total bullshit, and an easy way out for PayPal!! 

The local FedEx manager, where the package was shipped to, had the driver verify, TWICE, that he had indeed delivered the package to the recipients residence!  Now, I happen to believe a reputible multi-million dollar shipping company, when they say that the package was delivered.  I even asked the recipient, twice, if he had filed a police report and he never replied, which leads me to believe that there was some shady business on his side!  The bottom line is that PayPal always takes the side of the buyers and screws the sellers. 

I will NEVER do business with PayPal again!!  Be warned and stay away from PayPal!!!!

Posted: May 7, 2012 at 6:17 am

Leave a Reply

Your email address will not be published. Required fields are marked *


You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

5 thoughts on “PayPal Chargeback Ripoff
  1. ivan scala on

    Did fedex not get a signature upon delivering the package ? did that not have any value with Paypal ?

  2. Guest123 on

    Actually, did you try to find out if PP ever contacted CC to forward your apeal letter?
    They maybe not!!! In this case PP will be at fault of violation of the User Agrementsection 4.4: “It is credit card company, not PP, who makes the final decision.”

    If this is the case PP can be sued for bad business practice in you local Small Claim Court for your monetary loss.

    Of course PP will lie you that it was CC, who made a decisaion. If you are interested, I know how to find the truth and will tell then.

  3. Carlo on

    Got one going through now, fingers crossed. By the way can i take the credit card company to court to revocer any costs?

  4. Rick on

    Pay pay is a rip off. Sell an item on eBay, get paid through paypay and then have to wait 21 days to get your money? Are you kidding me!!!? How the hell much money are they making off our money? I can’t say I like PayPal controlling my money once an item is sold considering I supplied the shipping date and tracking number to eBay. Then the buyer left extremely great feedback and still Paypal has my funds locked up!!! Isn’t there some sort of law that prevents a company from this sort of thing?


  5. Kelly Clover on

    I have a big problem with a customer purchase on my website today. The website generated a record showing a completed paid
    sale. But there was no record generated from PayPal. Paypal had their standard customer service number closed down. I had to get another number off the internet. The explanation I got from PayPal made absolutely no sense. I sent the merchandise to the customer anyway without getting the money from PayPal because I didn’t really know who was lying but was suspicious of PayPal’s explanation. How could PayPal have no record of attempted payment? I always know
    when someone goes from the Checkout screen to the PayPal screen because a record of the checkout form is only sent to me when they press the PayPal button. However I do not see
    any of the payment information. Only PayPal sees it. I only get records that they paid or cancelled.