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PAYPAL Chargeback

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Post by ksl » Thu, 15 Jan 2009 11:29 am

I have never had a problem with paypal in 8 years, although i have heard of funds being frozen. I have actually had fake links to pay pal in my emails, from I suspect nigerians or other criminal sources....they use sometimes stolen credit cards to buy things, or they set up the scams on their own servers, using fake pages.

That's why the scammer targets new people, he want's to buy the goods and do the deal through paypal, only the seller doesn't have a pay pal account, so the link to the fake page can be shown that funds are deposited, until the goods arrive, then he pulls the plug.

I first suspected the OP in this case, was actually out to scam, but they wasn't he had been scammed.

Those links were just a quick search, I didn't really read them fully, but I do know I get a lot of emails, scam pages from ebay and paypal at least two a week.

Never log in on the page! Always Close down the browser and reopen it, then put in the website address to login.

Yes common sense for most, but those with poor English abilities get caught out! The paypal procedures must be followed to the last detail, no exceptions, and it can be a pain, to enure, that the address of the buyer is actually approved on the paypal account, this is where many fail, to check. So the seller is not covered in those circumstances.

The fraudsters are getting better and better so more care and attention is needed. Another point if the parcel goes by courier Fedex, DHL and others, you don't need to request a signature, because the parcel is not handed over, without one, so a tracking number, will always show a delivery address and the signature will be available. However the addresses are not always verified, by the buyers paypal account, when he buys, and that is the sellers responsibility to ensure he doesn't sell to a person that hasn't had the delivery address verified..

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Post by chewwl88 » Thu, 15 Jan 2009 12:48 pm

ksl wrote:
chewwl88 wrote:
sundaymorningstaple wrote:You STILL have not told us WHY the buyer wanted a refund. Until we know that, this still smells fishy. Did you promise one thing and send another or were the goods not as advertised? This will usually result in the buyer winning the case. That or you were extremely slow in shipping the goods after the buyer paid for them.
No, I send the correct one. The buyer make payment by credit card. The fund was been hold by PAYPAL as want me to send out the goods then release the fund to me. Which the buyer make the file

After the goods was send out, the PAYPAL release the fund. However, after one month later, the PAYPAL notice me that the buyer issue an chargeback against me. The buyer do not authorized this payment.

The goods already send out in FedEx with tracking no. Upload the information to PAYPAL, after the review. they claim buyer win the case.

It really unfair. so how about my goods? cannot get back and need to pay the total amount that profit only cost S$100.00

Please help.... how?
It seems like a real scam, using a false paypal link, the nigerians use them all the time, although you do have a delivery signature, so you need to file a police report. I think you will find, that you are not really a member of the real

I think the scammer has sent you the link and asked you to sign up for paypal a paypal account, and you will see the funds there for you.

A buyer cannot even submit a claim for 45 days, not 30. and if you are new to paypal you are not even covered for selling.

Read both links

See what i found:

It appears paypal are screwing up because newbies of paypal are not covered, certain checks have to be done, before a seller can be covered and i think he must have a minimum of sales first: Scammers target new People, and often ask them to sign up with paypal, the buyer sends them the link to a false paypal link.

Thank god it's never happened to me yet but close I have been while buying, and refused to send the money at the last minute, when i spotted that it was a scam! On needs to keep up to date on scamming if selling.

It also happens in export too, even if a letter of credit is arranged, just like escrow services, one needs to be very careful, check out the buyers, in the country in which you are posting to.

I have heard that big scams of ordering goods, with LOC are made, the buyer refuses to sign for them, the costs are to much to ship back, and the goods are then sold off at custom auctions very cheap, the buyer that ordered them is their bidding on them, he knows the true value. Also LOC documents maybe fake! Always ensure the LOC is irreversible!
I should know this link early before.. Thanks.
I think my PAYPAL cannot able to use anymore.. :(

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Post by chewwl88 » Thu, 15 Jan 2009 1:41 pm

Thanks for the value information.

In this case, what will happen to my PAYPAL account which fall below zero now? It show negative in balance?

If I not able to top up the amount. What will happen? cos I do not have so much payment to pay up.

I am very scare with dealing with Ebay buyer.


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Post by admin0 » Sun, 25 Jan 2009 12:15 am


I was hit once and here is how it went.

One guy got interested in my managed dedicated server offering and paid me $500 via paypal. I provided him the server logins and helped up setting up his http, mysql etc servers, given it was a fully manged server offer. The payment was made via paypal ($250 the cost of the server for me, $250 my management fees). The Paypal name and address matched to his email address ( a yahoo address). After 21 days, i got a chargeback claim. I contacted the guy and he said he did not filed up any chargebacks, and I said the same to paypal, I provided all email transactions and email records to paypal (his email was sent from the same address as his paypal address), as it was a manged dedicated server and not any physical good so i provided the email transaction to paypal. But eventually, paypal reversed the payment and I lost $250 that i had already paid to the datacenter for the server. I had disabled the server access when I first got the chargeback. He continued to be online on yahoo, and still claimed that he never filed any charebacks.

I had to get to the bottom of the matter. So, I told him that I had a new offer for him, and inspite of the chargeback, he can pay me via wire transfer and offered a new managed server offer with unlimited bandwidth at a very low price. For all technical details, invited him to use my helpdesk chat system. He agreed and we were chatting on my live chat system. (My live chat has a geo location system that locates the ip of the person chatting and map it to city/country)

I noticed that his IP address showed a DSL user from India, while he claimed he was from New York. I asked where he was and he still maintained New York. I said that due to the chargeback issue, I would like to talk to him personally, and provide his phone number. He gave one number, but said not to call instantly as he was not in his home and somewhere else. Asked me to call later, and ended the conversation. I spent the next few couple researching this clients name, facebook, myspace, linked in, blogs, the given phone number, everything[Thank god for the internet]

What I found was very interesting, that my client had been to India on a travel as i managed to locate his blog posting of his trip details to India. But the number that client gave did not matched the number he has in his paypal. On deeper search, I found that the number was provided by ipkall.

Here is what might have happened based on my research ( though I am 99.99% sure that this is what happened in my case )

One normal guy, say John Doe goes to India to travel. He uses his credit card on various hotels. One of the hotel staff will have his card, home address and can see the CVV2 code of the card at the time of payment. So the hotel staff or the shop staff or whomever will have those details. The client then goes on in his normal travel journey.

The hotel guy, or his friend or whomever they share the data with, whom we call our bad guy will then use the name and open something like [email protected] [email protected] or [email protected] After opening the email account, then they will sign up on Paypal using the name, email address and card details. Since the address and card is valid, they get to open a unverified paypal account. They will also then go to and get a free US number starting with the area codes: 1-206 1-250 1-360 1-425 . Now they will look out for buyers or those who have just started on paypal and place the order. The payment will be made via paypal and gets the goods shipped to wherever he wants. The original John doe, who returns from travel, will see the charges file for charge back to his credit card company, who in turn gets to PayPal. Whatever you give to paypal as proof of shipment will not get the upper hand because the goods goes to a third party, whom the client had no knowledge of.

Thus I learnt the following lesson:

1. Use the internet and research your client well.
2. Only treat paypal users that have a verified paypal account.
3. Always speak to the user in person, and ask him for his phone number
4. Google the number , area code to make sure where he says he is and the given number matches.
5. If you suspect anything is wrong, say that its your company policy that they need to fax/scan their ID (driving license, passport, anything). Many companies ask for this, so its OK to ask. The bigger the amount, the bigger the risk.

Hope this helps.


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Post by durain » Sun, 25 Jan 2009 12:48 am

admin0, excellent post. you can never be too careful these days.

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Post by johnkok » Sun, 25 Jan 2009 1:28 am

good tips, will keep that in mind. Thanks.

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Post by chewwl88 » Sat, 28 Feb 2009 3:45 am

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Post by stylezmind » Sun, 01 Mar 2009 4:06 pm

Don't use paypal. Buyers always has the upperhand. Thus, if you get a lousy buyer, its very hard to do business. Use LC, the best.

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Post by mineralskincare » Wed, 18 Mar 2009 12:26 pm

stylezmind wrote:Don't use paypal. Buyers always has the upperhand. Thus, if you get a lousy buyer, its very hard to do business. Use LC, the best.
May i know what is LC?

Also, does the above situation occurs if transactions are made by a Singaporean in Singapore to a Singaporean in Singapore?

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Post by sgmem88 » Sat, 18 Apr 2009 5:09 pm

Hmm. Now I know why so many ebay sellers don't prefer to ship their item oversea. The risk is just so high and no easy to resolve.

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Post by sunweaver » Mon, 20 Apr 2009 9:49 am

Have you tried contacting paypal singapore ?
They have office here.

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