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

PayPal Has A Loophole

Writer Wishes To Remain Annonymous

Paypal’s Seller’s Protection Policy (SPP) is a loophole in the system. The SPP is supposedly to protect sellers from credit card fraud. Usually than a chargeback is initiated against the seller claiming unauthorized charges. By now, the seller’s account is debited the chargeback. If there isn’t sufficient funds in the balance, the account will move into a negative balance.

Sellers who are covered under the SPP and gets charged back will get reimbursed, but the sellers who don’t have SPP will loose out on the dispute even if evidence is provided.

You and I know that Paypal will simply not take money out of their own pockets and reimburse sellers with SPP when chargebacks occur. This is how they do it: Paypal will deal with the CC company if sellers have SPP. This means that Paypal will work extra harder if you are covered under SPP, whilst sellers who don’t have SPP are automatically ignored and thrown to the side. There is not a chance that a seller without SPP will win a dispute against chargebacks.

Paypal isn’t willing to work as hard for you because you don’t have SPP, even when both sellers are under the same problem? SPP is a loophole that Paypal takes advantage to avoid losing money and time for sellers without SPP. SPP is one thing of the things the majority of sellers are without. Paypal is supporting fraud!

The SPP policy is absurd! To be eligible for SPP is ridiculous. One of the important things is that you must add a bank account in order to be eligible. Some of us are reluctant to add a bank account due to Paypal’s unlimited control over it. This is where we are manipulated and it’s all to Paypal’s advantage. Paypal will reimburse you for chargebacks but they get back a partial of that money by controlling your funds and bank accounts, or the rest from dealing with the CC company.

Paypal’s policies and procedures are unethical. The SPP should come as standard to any sellers!

Posted: May 7, 2012 at 12:19 pm


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