PayPal Seller Protection Fail - NBC Clip

Описание: **PayPal Sellers Beware**

If you or your business uses PayPal to sell items online, then you need to watch this story. PayPal does not protect online sellers from fraudulent buyer scams, despite their claims that they offer Seller Protection against such scams. What if a buyer claims they never received their order, but you have multiple emails from the buyer confirming receipt of their order? PayPal will issue a refund to the buyer. What if the buyer claims their order was damaged, so you ask them to return it, but all you get back is a blank piece of paper? PayPal will issue a refund to the buyer. These are real examples of a scam that is harming small businesses like DSN and many others across America, and PayPal is allowing it to happen and refuses to put a stop to it. Read on for more details. We hope that by sharing our experience other small businesses will speak up and we can get PayPal to stop allowing foreign scammers to take advantage of American citizens and business owners.This has happened hundreds of times in this particular story and individual sellers and businesses are suffering.

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Watch this story if you use PayPal to sell items. This small business has been selling and shipping products throughout the United States and to their international customers since 1995. Like almost all businesses and individuals that sell products online, they accept payments via PayPal because PayPal offers small business sellers, like Discount Sport Nutrition (DSN), the assurance of certain fraud protections. Unfortunately, there are some fraudulent buyers that have found ways to circumvent PayPal's seller protections, and it is our hope that PayPal will change its policies accordingly so that other small businesses and individuals won’t fall victim to these scams.

In a typical online purchase using PayPal, a buyer has three ways to dispute their purchase by filing the following claims directly with PayPal: (1) Item Not Received (INR); (2) Not as Described (NAD); and Unauthorized Purchase (UP). A buyer may also choose to dispute their purchase directly with their credit card company. Historically, DSN has encountered less than one of these disputes per year during the previous 5+ years. Since April 2017, DSN has received 460 claims (and counting) related to 389 orders, which equates to almost 80 claims in each of the prior 5 months. That’s a 46,000% increase year-over-year in the number of PayPal claims!

One scammer has made an astounding 21 claims in an attempt to get a refund on 10 of his orders. In fact, each scammer involved has placed an average of 7 orders, but they have made an average of 8 claims! As you will see in the clip below, one scammer received a refund from PayPal after he provided them with a Fed-ex tracking number showing that he "successfully returned” his order to DSN. However, instead of returning the 20lbs of the products he ordered from us, we received two blank pieces of paper in a flat Fed-Ex envelope weighing less than a pound. So far, we have been unsuccessful in convincing PayPal that this 1lb flat envelope was a fraudulent attempt to take advantage of PayPal’s return policies. The scariest part about this situation is that DSN has provided PayPal with irrefutable evidence that these scammers are committing fraud. And yet, despite this evidence, PayPal has sided with the scammers over 99% of the time.

It is also important to note that DSN does have explicit international shipping policies that prohibit issuing a refund to these “buyers.” Our international shipping policies are published on our website, as well as on all of our order receipts. Even after informing PayPal that these particular buyers are not eligible for a refund due to violating our international shipping policies, PayPal continues to issue refunds to these individuals. The far-reaching implications here for all small businesses is that PayPal is telling us that their refund policies will always supersede a small business' shipping policies, even on sales where you clearly indicate “NO RETURNS” or “ALL SALES FINAL.”

DSN appreciates the need for PayPal to have certain Buyer Protections in place that protect innocent consumers from unscrupulous sellers. Likewise, we also expect PayPal to have certain Seller Protections in place to protect innocent sellers from unscrupulous buyers. And when a group of foreign buyers targets a small American business that has over 20 years of international shipping experience, and a clean history with PayPal virtually free of buyer complaints or disputes, we believe it is PayPal’s responsibility to step in and enforce the Seller Protections it promises on its website—and which we pay for with each PayPal transaction.