URGENT - Would you trust PayPal with a large order?

30 replies
Hi

Im using Paypal on my website. A customer has emailed me wishing to buy goods for over £500.

If the customer made payment through paypal and i ship out all my goods, can paypal declined the customers payment or the customer pull back the money so i loose out?

I dont think my customers are risky but i would like to know what happens in large cases like this with big orders?
#large #order #paypal #trust #urgent #website
  • Profile picture of the author NicheDad
    customers can pull back the money on any payment source. especially when a credit card is involved. I read a report that CC companies side with the buyer in disputes something like 83% of the time.
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    • Profile picture of the author timpears
      Originally Posted by NicheDad View Post

      customers can pull back the money on any payment source. especially when a credit card is involved. I read a report that CC companies side with the buyer in disputes something like 83% of the time.
      That is because people don't usually dispute unless they havw an issue. If you ship and can show proof of delivery, you should have nothing to worry about it. They would have to return the merchandise in order to get their money back. Shipping costs would not have to be refunded though as that was consumed.

      I have had payments as high as $6K through PayPal with no problems.
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  • Profile picture of the author QuirkieGifts
    whats the best way to take payment as i only use paypal? what would a reason be why paypal have called the money back and i could be at a loss? is it common?
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    • Profile picture of the author mosthost
      Originally Posted by QuirkieGifts View Post

      whats the best way to take payment as i only use paypal? what would a reason be why paypal have called the money back and i could be at a loss? is it common?
      PayPal puts 'holds' on many transactions. You need to verify this order carefully if you plan to proceed.
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  • Profile picture of the author iuditg
    Just make sure that you get the delivery receipt signed by the customer who is receiving them and you will be fine. I have been using paypal since over 2 years now, I never had a problem.
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  • Profile picture of the author Joseph Robinson
    Banned
    What used to happen with me in the beginning is PayPal would put a temporary hold on the funds (usually for like 24 hours) and then they would release it. It hasn't happened to me since I started shooting them quick emails informing them that a large order would be coming through. Perhaps try that (although your experience may vary based on what you are selling. I'm talking about a writing service here).

    As far as the buyer backing out, it is certainly possible; but that holds true with any processor I would think.
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    • Profile picture of the author funkynassau
      How about an email transfer into your bank account and not use paypal? Or have the customer send you a cheque but you dont send the goods until it has cleared your bank?

      Funkynassau
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      • Profile picture of the author RichBeck
        Originally Posted by funkynassau View Post

        How about an email transfer into your bank account and not use paypal? Or have the customer send you a cheque but you dont send the goods until it has cleared your bank?

        Funkynassau
        I'd be VERY careful with checks.... I used to think once it is cleared... It is cleared... Not true......

        I called to specifically ask my bank (in the USA) about this... They said they can come back and "take" the money back whenever.....

        For those doing business in the US of A, I would only accept a US Postal Money Order for high ticket items.... They mail you the money order... You take it the post office... And they hand you the cash.... That is as final as it gets....

        God Bless,

        Rich
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        • Profile picture of the author Steve Wells
          Another side note of added protection, is that committing fraud while shipping via the US Postal Service is a Federal offense, which deters would be scammers.


          Originally Posted by RichBeck View Post

          I'd be VERY careful with checks.... I used to think once it is cleared... It is cleared... Not true......

          I called to specifically ask my bank (in the USA) about this... They said they can come back and "take" the money back whenever.....

          For those doing business in the US of A, I would only accept a US Postal Money Order for high ticket items.... They mail you the money order... You take it the post office... And they hand you the cash.... That is as final as it gets....

          God Bless,

          Rich
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  • Profile picture of the author QuirkieGifts
    Ive dropped paypal an email just to advise of the amount.

    The customer is being polite i just wouldn't want something to happen as i only have average order values each day from customers and something so large and in bulk i did panic a little!
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    • Profile picture of the author mosthost
      Originally Posted by QuirkieGifts View Post

      Ive dropped paypal an email just to advise of the amount.

      The customer is being polite i just wouldn't want something to happen as i only have average order values each day from customers and something so large and in bulk i did panic a little!
      You should. Fraud is HUGE online. I mean REALLY FREAKING HUGE!

      Just make sure you give the customer good customer service but verify the order. Sure, a bank transfer would be good for you, but so good for their customer. They might balk.

      As the one poster said above, make them sign for delivery and all should be well.
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  • Profile picture of the author QuirkieGifts
    Would bank transfer work?
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    • Profile picture of the author Joseph Robinson
      Banned
      Originally Posted by QuirkieGifts View Post

      Would bank transfer work?
      What do you mean, as an alternative to PayPal? Or are you asking if the transfer from PayPal to your bank account will work?
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      • Profile picture of the author QuirkieGifts
        Originally Posted by Joe Robinson View Post

        What do you mean, as an alternative to PayPal? Or are you asking if the transfer from PayPal to your bank account will work?
        the customer has suggested bank transfer or paypal and with the amount i wanted i was thinking maybe a bank transfer on this cocasion for the size of the order?
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  • Profile picture of the author QuirkieGifts
    So if the customer signs for the goods and something happens with paypal then its a case of sending them proof of signing and then im covered my end?
    Bank transfer can happen within a couple of hours and cant be retracted can it?

    Thank you for your comments
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  • Profile picture of the author ttdub
    I don't know... Paypal can be really touchy about big money.
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  • Profile picture of the author John Romaine
    Not sure what the issue is. Its only 500 pounds.

    Ive dont plenty of $3,000 transactions over the years. Never had a problem.
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  • Profile picture of the author QuirkieGifts
    £500 is alot of money so is £20 or £3000. I wouldn't want to be out of pocket for any amount of money. Wanting to be safe. just wanted to check.

    Better to be safe then sorry my motto!
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    • Profile picture of the author mosthost
      Originally Posted by QuirkieGifts View Post

      £500 is alot of money so is £20 or £3000. I wouldn't want to be out of pocket for any amount of money. Wanting to be safe. just wanted to check.

      Better to be safe then sorry my motto!
      If the customer suggested bank transfer, do that. It's failsafe for you.
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    • Profile picture of the author Tangycontent
      Originally Posted by QuirkieGifts View Post

      £500 is alot of money so is £20 or £3000. I wouldn't want to be out of pocket for any amount of money. Wanting to be safe. just wanted to check.

      Better to be safe then sorry my motto!
      PayPal processes ~$300,000,000 in transactions every day. They aren't concerned about your one-off £500 charge.

      Someone above me mentioned that PP may institute holds on your account; they do this based on your transaction volume over time, not on single-shot transactions like this.

      If your client suggested a bank transfer, I'd go that road to avoid the PP transaction fees... but no, you should have nothing to worry about with this single £500 transaction provided you have a decent history with them.
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  • Profile picture of the author mindreaderwriter
    Banned
    Don't be afraid doing any transaction with PayPal. As long as you do legal transactions, there's nothing to be afraid of. I run a writing service and I have established clear Terms and Conditions on Refund and Revision Requests. I attach that either on the PayPal invoices I send or through email every time I respond to my clients with their job codes so they can't take it against me that they're uninformed (though ignorance is not an excuse to the court of law).

    I have encountered lots of clients who would tell me that they will file a claim to PayPal. I actually encourage them to bring it on and escalate the issue "right now" because I know that I'm still in compliance with my Terms and Conditions and the concerned client is in violation of it. So, I'm not afraid because I know I'm doing what is right.
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  • Profile picture of the author werpetalpushers
    I have never had a problem with PayPal. Good luck to you!
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  • Profile picture of the author FNHPWR11
    Paypal can be good and bad. I have been doing a decent amount of business with them for the better part of 10 years. Just sold a website a few months ago on Flippa. Unfortunately I accepted PP as payment. 60 days later the guy bounced the site to private reg and filed a charge back on his credit card. Paypal immediately took the money out of my account. I supplied Paypal with every bit of proof possible that the site was sold to this guy. Ultimately it becomes PP on your behalf against a credit card company. PP will drop the case. You will be out the money, or in my case a website and money.
    So, use your better judgement.. If it seems odd, it probably is.
    I agree with Mosthost, if instant transfer is an option, go that route.
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    • Profile picture of the author cashp0wer
      Make sure you keep all of your documentation from the sale and shipping information in case a problem comes up. It can easily be solved by you providing PayPal with the shipping information, etc.
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      • Profile picture of the author Kay King
        Why would a customer contact you about "wanting to buy" instead of simply placing an order?

        I'd worry about the customer - not about paypal. If the customer is scamming you he can reverse a transaction, be using a stolen credit card or whatever - and paypal will reverse the transaction if the payment is not good.

        Holding the carrot of a "big sale" and then asking for special shipping or other unusual requests should be a red flag to any seller.
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  • Profile picture of the author Steve Wells
    Originally Posted by QuirkieGifts View Post

    Hi

    Im using Paypal on my website. A customer has emailed me wishing to buy goods for over £500.

    If the customer made payment through paypal and i ship out all my goods, can paypal declined the customers payment or the customer pull back the money so i loose out?

    I dont think my customers are risky but i would like to know what happens in large cases like this with big orders?
    Ship with signature verification, where the buyer has to sign to receive the product, that way you have the proof they received it......
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  • Profile picture of the author BIG Mike
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    • Profile picture of the author RichBeck
      Originally Posted by BIG Mike View Post

      The largest order I've done through PayPal is was $25K paid to us in 5 payments over 5 weeks via mass pay on the buyer's part. I spoke with my account rep at the time who was aware of the transaction (developing software for a German company). No problems as PayPal, the company and I agreed in advance it was non-refundable.

      In your case, don't ship until you've got the money - assuming it's physical goods, you shouldn't have anything to worry about. Make sure you the order is tracked and signed for.
      Mike,

      I take it a step beyond that..... In the PayPal item description, I put Item Description + "Non-Refundable-All Sales Final" This makes it clear to the buyer and PayPal if they ever come back to dispute it.

      God Bless,

      Rich
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  • Profile picture of the author sbucciarel
    Banned
    I've taken payments of $2,500 for websites without any problem. Of course, if the customer had disputed the payment, it would be a headache.

    What I do for large orders is to issue a Paypal invoice to the customer rather than just letting them pay you. Make the invoice detailed as to exactly what the purchase is. Document the shipment when you ship. Then you have the materials to fight back if they do something dishonest.
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  • Profile picture of the author arranrice
    I have accepted over $2100 in a payment before, i dont think its too safe though, i just took the risk, its best to contact paypal before you get the payment so they know they it should be fine. Im trying to move away from paypal because im hearing and reading all of these paypal horror stories.
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  • Profile picture of the author CBusiness
    it's a risk, period
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