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Pending Reversed Transaction

By Vern

I engage in buying/selling items on eBay. The last item I sold was a Pocket PC and accompanying accessories. The item was paid for via PayPal. The item was shipped to the buyer. About 2 weeks later I received a notice from PayPal that there was a “Pending Reversed Transaction”.

This is the full text of the email;


Dear Vern,

Recently, PayPal received a notification from a user regarding unauthorized access to his PayPal account. As a result, one of the payments credited to your PayPal account has been reversed. The details of this transaction are as follows:


Transaction Date: Apr. 20, 2004

Transaction Amount: $523.00 USD

Buyer’s Email:


If you have already shipped goods related to this transaction, you may be covered under PayPal’s Seller Protection Policy. Please provide PayPal with the following information:

1) Tracking Number of Shipment

2) Shipping Company Used

3) Shipping Insurance Information (if used)

If you have provided a refund to the buyer, please provide PayPal with the following information:

1) Date of Refund

2) Amount of Refund

For you to be protected by our Seller Protection Policy, you must reply to this email. We need to receive all correspondence regarding this case within 7 days. If you have any questions, please reply to this email.

We look forward to your reply.


The PayPal Team



NEVER give your password to anyone and ONLY log in at Protect yourself against fraudulent websites by opening a new web browser (e.g. Internet Explorer or Netscape) and typing in the PayPal URL every time you log in to your account.



PayPal Email ID PP334


I immediately complied with their request for information. I even sent them a scanned copy of the tracking number. Instead of actually investigating the supposed fraud, then informing me of a decision, they IMMEDIATELY debited my account for $523.00. This put my PayPal account negative over $500.00.

It would appear that another user’s account was “hijacked” and the payment I received was from that user, and not from the buyer. If this is the case, the responsibility seems to lie with PayPal for not having string enough security, or with the user whose account was used to pay me, for not having a strong enough password. In either case, I should not be the one who loses. PayPal should bear the burden of the repayment to the “hijacked” account-holder.

This has put a serious financial hardship on me, as a portion of my income is paid via PayPal. I would have to work for free to be able to balance the account.

Additionally, I am unable to make payments with PayPal. Any attempt informs me “Your PayPal account balance is currently negative. Therefore, this transaction will transfer the funds necessary to complete your payment AND the funds required to bring your balance to zero. I make my Natural Gas Bill payment using PayPal. I am unable to make a $27.00 payment without it costing me $534.46.

This is ridiculous. There has been no notice given to me that an investigation has taken place, nor that any decision was reached. Per their email to me, it was a notice of a Pending Reversed Transaction. Why is my account debited already?

Now, I fear that my checking account, which is linked to my PayPal account, will be debited by PayPal for the negative balance. I am unable to pay part of my bills, am unable to collect a portion of my income, and fear that I will lose even more money at the hands of PayPal.

Posted: May 7, 2012 at 11:43 am

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