Doc's eBay Motors Sucks Blog

PayPal Partner In Buyer Return Fraud With eBay Inc

Last week eBay announced it would be partnering with Adyen for marketplace payments. Doc wonders if PayPal is dumping eBay Inc because of marketplace buyer fraud? Doc has witnessed many consumers who lost large sums of money to PayPal ChargeBacks. Adyen probably has no idea what they are getting involved in leaping into bed with eBay Inc.

PayPal ChargeBack NOT Safe For Sellers

Sellers have lost large sums of money to PayPal ChargeBacks. Now with eBay switching it’s payment processor to Adyen is PayPal Dumping eBay Inc?

Consumers are urged to trust PayPal for payments because it is safe. And it is safe 99% of the time for buyers on eBay marketplace. But PayPal is NOT SAFE for sellers who frequently lose large sums of money to eBay Marketplace Buyer Fraud!

There are many tutorials on YouTube showing consumers How to Dispute a PayPal Transaction and get a Full Refund. One of those videos is here. If you are a seller, especially selling on eBay, there’s a chance you will be defrauded.

Doc follows eBay Motors buyer and seller disputes and has documented PayPal chargebacks where sellers have lost money. PayPal buyer protection does not cover Motor Vehicles or Vehicle deposits. But buyers paying for automobiles often fund those PayPal payments with their credit card.

One article Doc published was this: Boat Seller defrauded of $8500 after buyer filed a fraudulent ChargeBack on used Boat sold on eBay Motors.

Toni Ristow Lloyd, sold her pontoon boat on eBay Motors and said the buyer came to her home in Las Vegas to inspect the boat, purchase the boat and take it home to Arizona to be used all summer. Once the chargeback was filed, PayPal came to her saying she owed them the $8500 earned in the sale. The problem was, that money had already been spent.

Unable to get anyone at PayPal to talk to her, she turned to Michelle Mortonsen. Michelle gathered evidence from Toni, the buyer, EBay, PayPal and the buyer’s credit card company. She worked every angle of the case for nearly 4 months, but in the end PayPal’s user agreement overruled any evidence she uncovered.

This sort of buyer fraud occurs quite often on eBay’s marketplace. Often sellers of expensive electronics become victims of buyer fraud. This occasional seller auctioned his mint condition iPhone on eBay where the buyer filed a SNAD complaint with eBay. PayPal was instructed to return the buyers money then PayPal took the sale proceeds back from the seller.

Fortunately this iPhone seller had many friends on social media who made a lot of Noise as eBay calls it. After his story spread on social media an eBay representative reversed it’s decision and paid the seller. Not many sellers who are victims of eBay / PayPal buyer fraud are that lucky!

Possibly PayPal is worried about a large class action lawsuit being filed against them for fraud. It very well could be the reason eBay is leaping into bed with Adyen.

Former eBay Motors PowerSeller and retired licensed Florida used car dealer with over 40 years experience in the business blogs about eBay. He shares helpful advice for motor vehicle buyers and sellers. Have questions or need help? Ask Doc!

1 Comment

  1. Seller Critic

    When the PayPal Pig was finished being Stuck and ate, now they bring in a new PayGate for another reputation and money suck pig to come in called AdYen. Sounds like Yen which is another form of currency and possibly the start of a new world currency. Any which way you slice it, this means PayPal’s bones are sucked dry and there is no skin left on the dead pig so now they are going after another payment processor to take it’s place. lol tell me I don’t have this figured out. I called PayPal’s time is up in the news piece and hit the nail dead on thank you very much!

    Reply

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