Paypal "service" loophole

12 replies
Hi!

I'm starting to release that apparently it seems there is a paypal "service" loophole - in that all someone needs to say to paypal is that a "service" was provided, and there is no buyer protection then. (I.e., paypal won't refund it). (Simply because I paid for a couple items but the service was not rendered, in fact most recently one individual put affiliate links, promoted a different product, etc, etc for a product that I was paying for to promote). I will probably have to go to my cc company to get the charge taken care of, but I wanted to know:

What do you to to protect yourselves in these cases? I.e., since you've probably done something like this before, is there something you do to prevent that kind of (lack) of service?

(What was really annoying with the last person is they actually ran the ad however they felt, totally ignored what was initially agreed upon, and promoted *other* products).

Thanks!
#loophole #paypal #service
  • Profile picture of the author SteveJohnson
    What I am wondering is why people think that PayPal should be anything other than a money transmitter. You wouldn't go to Western Union and expect a refund if you'd sent money through them to someone who took it and ran, would you?

    You protect yourself by not paying for the service until it's complete. If you're the service provider, you protect yourself by getting payment first. Both of which present a quandary.

    You can do 50/50 if both of you agree.

    Or you do it the old-fashioned way: with a contract. Then you sue if the other party breaches.

    Or you just suck it up and learn and write the money off to a lesson learned.
    Signature

    The 2nd Amendment, 1789 - The Original Homeland Security.

    Gun control means never having to say, "I missed you."

    {{ DiscussionBoard.errors[4599032].message }}
    • Profile picture of the author Paul Barrs
      Originally Posted by SteveJohnson View Post

      What I am wondering is why people think that PayPal should be anything other than a money transmitter. You wouldn't go to Western Union and expect a refund if you'd sent money through them to someone who took it and ran, would you?

      You protect yourself by not paying for the service until it's complete. If you're the service provider, you protect yourself by getting payment first. Both of which present a quandary.

      You can do 50/50 if both of you agree.

      Or you do it the old-fashioned way: with a contract. Then you sue if the other party breaches.

      Or you just suck it up and learn and write the money off to a lesson learned.

      Steven, indeed. It's a warped way of looking at online business isn't it?

      The thing that really gets me wondering.. is *why* someone would "go to town" over a $10 WSO or similar. Idiots.

      Paul
      Signature
      **********
      It's Simple... I don't "sell" IM anymore, but still do lots of YouTube Videos
      **********
      {{ DiscussionBoard.errors[4599696].message }}
  • Profile picture of the author ShawnSells
    I think PayPal may do that because service sellers have been taken advantage of in the past. People buy a service, and after it's been completed, they contact Paypal in attempt to now get the charge disputed and reversed. So, it works both ways.
    {{ DiscussionBoard.errors[4599642].message }}
  • Profile picture of the author krtinberg
    Yeah it can definitely works both ways. I get why PayPal handles this the way they do although it can lead to issues in certain cases.
    {{ DiscussionBoard.errors[4599707].message }}
  • Profile picture of the author glinda2011
    I think they are doing this to protect both the seller and the buyer.
    {{ DiscussionBoard.errors[4600447].message }}
  • Profile picture of the author Nick Walker
    That's why you always check if the service has reports given or not. If they don't well it may be a scam unless the seller has a high reputations.

    But its not really a loophole, because you can simply call paypal.
    {{ DiscussionBoard.errors[4600464].message }}
    • Profile picture of the author GreyMan
      PayPal is just a bad word to me, They talk about seller protection, but there is no such thing.
      Not everyone shares this view because it's a convenient service. But that's nothing when you get cheated by PP as an honest seller.

      I'm really grateful for some excellent alternatives people suggested to me on this forum.
      {{ DiscussionBoard.errors[4601389].message }}
      • Profile picture of the author AdwordsMogul
        Originally Posted by GreyMan View Post

        PayPal is just a bad word to me, They talk about seller protection, but there is no such thing.
        Not everyone shares this view because it's a convenient service. But that's nothing when you get cheated by PP as an honest seller.

        I'm really grateful for some excellent alternatives people suggested to me on this forum.
        Well, since they promise it, they should deliver. Even though, as pointed earlier you can't realistically expect them to bear that responsibility - it's your job to protect yourself.

        The truth is there are people who will scam you, or try to at every level, so you need to always factor it in.

        It doesn't matter if you sell $7 reports or luxury cars - thieves are everywhere.
        Signature
        "Those who can - DO IT. Those who can't, say it's impossible."
        Jean Paul a.k.a AdwordsMogul
        PHPDevelopers.net - Top of the range PHP developers

        Easy Link Saver - Are you tired of the pain of constantly searching for your affiliate links? ( Chrome extension - FREE )
        {{ DiscussionBoard.errors[4601520].message }}
        • Profile picture of the author GreyMan
          Oh I do protect myself. I'm not touching them any more!
          I'm probably wiser now too. I'm taking every precaution out there now.
          My experiences were related to selling on ebay.
          I know you're right about thieves being everywhere. Boycotting PP doesn't guarantee there'll never be problems. But my issue with PP is that they took the thieves' side repeatedly.
          {{ DiscussionBoard.errors[4602973].message }}
  • Profile picture of the author FXdarling
    I never had a bad experience with paypal, but heard few cases when users solved their paypal payment issues very successfully. You can make a chargeback in paypal
    {{ DiscussionBoard.errors[4601329].message }}
  • Profile picture of the author toddbakker
    I have to agree with "SteveJohnson".. I wouldn't expect a refund from paypal if I needed it. Even though you can cancel subscriptions through paypal I still believe it should be upon you to go to where you bought the product and ask for a refund in that manner.

    I personally never had a problem with Paypal ever.
    Signature

    Get access to Viral Monopoly, one of the best internet marketing coaching programs, and also obtain an unbelievable Viral Monopoly bonus.

    {{ DiscussionBoard.errors[4603370].message }}
  • Profile picture of the author Tim_Carter
    It is not a loophole, it is part of their TOS. If you use it to pay for a service than you have already agreed to the TOS.

    I use a credit card in case the service is not delivered. Then you have recourse. Otherwise you do not. You can call PP all you want. If it is a service or digital download you can't win as a buyer.

    ** Edit ** Also know who you are dealing with. I take full payment in advance and have no issues from my customers because they know I aways deliver and I keep in touch with them. If you provide a service keep the communication going or you will have unhappy customers and chargebacks.
    {{ DiscussionBoard.errors[4603686].message }}

Trending Topics