Is PAYPAL the best option for Sellers?

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In my experience as a seller as well as a buyer I've not been always so happy with paypal. As I am seller more than a buyer so I'll only describe the OPEN HOLES in paypal's system which can leave sellers out of pocket and buyers with both, the item and their money.

(Following is based on what has happened to many people i know as well as myself in past and till today paypal has open disputes but not a solution)

  • Paypal claims to be a very safe place, but it DOES accepts bogus details to open a paypal account without any verifications. Sell some thing(which doesn't exist) on ebay,  get paid thru paypal. Buy something somewhere (let say ebay) and pay from paypal balance, enjoy yourself. Paypal can't reach you because you used bogus details to open a paypal account. All you will keep receiving from Paypal is a request to add funds to your account and bring your account balance to at leat £0.00. 
    • Results
      • Buyer of you item: Out of pocket (But with unsolved disputes for ages)
      • Seller of item you buy: Paypal will put hold on his/her funds and you will hold his/her item 
  • An ebayer bought an item from me. He paid for the item in the morning. On the same day,  I receive an email from Paypal that they have put an hold on my funds I received. They asked me not to post the item and give them information about that payment I received such as what is that payment for?. It was too late as I had already sent the item to the buyer and the buyer had, CONFIRMED address and SELLER PROTECTION was ELIGIBLE. I contacted buyer he said paypal had some problems with his account and he will send me money soon. Then later paypal sent me another email that the buyer has initiated a claim for an item which is not received. How the hell can I deliver an item on the day it was purchased. I gave paypal details but they refused my claims for no reasons within 16 hrs and the money was refunded to the buyer. WHY? Paypal didn't reply. Now buyer has my item and his money.
  • Paypal knows they have these holes in their systems but they just don't want to sort these out because Paypal is not a bank, and they don't have to follow the laws.
  • There is no system in place to avoid false claims by buyers. Items sent using normal 1st Class and 2nd Class post are not covered by PayPal policy. PayPal doesn't accept proof of postage which is OFFICIAL method to prove that an item was sent at the counter of a Post Office. If a buyer claims an item is not received, the seller can not do any thing except PayPal will deduct the amount from seller's PayPal account. In mean time if seller makes a claim from Royal Mail for lost item it will take Royal Mail longer time than PayPal's decision on claim. In practical less than 1 buyer in 100 takes the option of Recorded Postage as buyer wants to save as much they can.

If other payment companies can offer buyers protection in case of circumstances above, then why not PAYPAL the OFFICIAL partner of ebay. One example is NOCHEX, Cheaper than Paypal and RECOGNIZED by ebay.

I think instead of Recognizing other payment methods, ebay should improve it's own PAYPAL before GOOGLE jump in to online payment race, or PAYPAL will be a part of history.

Following is the reply I received from PAYPAL at last after an email where I gave them the references of my legal battle I started against their unlawful action.


Dear Asif,

Thanks for contacting PayPal. I appreciate the opportunity to assist you
with your questions.

Hi, my name is Alan from PayPals Resolutions Department. I understand
you are querying the reversal of an amount of £7.98GBP. I can see that
you were informed that this transaction was eligible for Seller
Protection but we required a tracking number.

From reviewing your account further I can see that a Buyer Complaint has
been opened for the same amount? I can only apologise for this
inconvenience. I have sent a request to close this Buyer Complaint for
you. As a gesture of goodwill I have issued a courtesy credit for the
amount of £7.98GBP to be added to your account. This should take between
24 - 72 hours to complete. Once again I do apologise for the
inconvenience and I hope this experience has not put you off using

Thank you for the email. I do apologise for any inconvenience this has
caused you. We are pleased to have you as a member of the PayPal
community of online payment members. If you need any assistance in the
future, you can contact Customer Service by email at 
[link can't apear in this guide]. Thank you for using PayPal.
It is my pleasure to assist you. Thank you for choosing PayPal.

Copyright © 1999-2006 PayPal. All rights reserved.  PayPal (Europe) Ltd.
is authorised and regulated by the Financial Services Authority in the
United Kingdom as an electronic money institution.  PayPal FSA Register
Number: 226056

Risk Operations
PayPal, an eBay Company


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