Be carefull of PayPal : eBay Guides

I am writing this webpage in an attempt to discourage people from using PayPal or at the very least to help educate others of PayPal's sleazy business practices.

PayPal doesn't really offer any more "protection" than what most credit companies already offer. In fact most credit card companies will protect you much better and refund your money much quicker than PayPal if you become a victim of fraud. I have had only two occasions for using PayPal's so called "protection" and both time it has been a very frustrating experience.

The first time on eBay a seller had not sent me the item I won claiming that I never paid for it even though my PayPal account supported my claim. Three months latter I got back only $187.00 of the $209.00 I paid, The sellers mistake for some reason cost me $22.00 in fees and other bullshit charges. I complained, but PayPal basically told me to piss off.

The second time also on eBay I thought I was buying an original Navigation DVD for my Infinity G35; it was a copy which didn't work. I went to the dealership and bought a new DVD and started a claim with PayPal to get my money back for the bogus copy I bought earlier on eBay

After two months of talks with PayPal and because of some other fraud complaints and having eBay boot the sellers (2deepentertainment)  off ebay he finally agreed with PayPal that if I send the DVD back at my expense he would refund my money. So I sent it back (during Christmas) and give PayPal the parcel tracking number and a week latter PayPal tells me that they are canceling my claim because the confirmation of the parcel delivery can't be established. I found out that either he refused the package or gave the wrong mailing address, I complain to PayPal and once again PayPal tells me to piss off.

PayPal Sucks because;

- If you use your credit card to pay PayPal and you should for your own protection you are expected to forfeit your rights to use the credit card consumer protection laws which are there to protect consumers from fraud (from companies like PayPal). When you get ripped off PayPal forbids you in their terms of service (TOS) from asking your credit card company to reverse the charges (charge back) and if you go against PayPals wishes they will "limit" your account. PayPal isn't God and their terms of service is not legally binding so you are still well within you rights to ask your credit card company for a charge back and PayPal really has no say in the matter. Also never ever give PayPal have your banking information or they may be able to remove money from your accounts if there is an disagreement with them. PayPal would prefer you to use you bank account to fund your purchases so you won't be able to get a back charge when PayPal screws you around.

- PayPals doesn't like to give it's customers help when they need it because it costs them money. They actually have intentionally make the phone number very difficult to find in order to save costs. The only reason their number can be found now (still isn't easy to find) is because they were forced to by law (EFTA Electronic Funds Transaction Act). I have wasted many hours trying to get back my $156.00 from them.

I finally just gave up and got my credit card company to reverse the charges an wrote this site to warn people like yourself about PayPal.

An Update (a year latter)
To avoid ripoffs
- Avoid buying from persons who don't have a long "good seller" history on eBay.  Be very suspicious of new sellers and expensive items,
- PayPal now does a better job at protecting buyers, PayPal will protect you on some items up to a certain amount which is stated on item display page.   Look for and note the amount your protected up to on the items page.    No note from PayPal = No protection from PayPal.