Paypal Echeque Scam

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A clever and devious way that a buyer can scam a seller by using echeques and not even get an unpaid item strike!

This is from a personal experience and we feel that all sellers should be aware of this.

This is how it works:

  • Buyer pays for goods by echeque (and we know they take 10 days to clear).
  • You, a responsible seller, send their goods before the echeque clears AND leave them positive feedback.
  • They receive the goods and can even leave you positive feedback.
  • 9 or 10 days after the echeque was sent, they log-on to their Paypal account and cancel the echeque (shows as "Cancelled" for the transaction status). This echeque has not bounced. The buyer has actually cancelled it. Paypals explaination for "Cancelled" is:

"This payment was cancelled by the sender. The sender’s account was credited back with the funds."

  • Now they have your goods and your money.
  • Now, you would issue an Upaid Item Dispute to try and get back your FVF and give the robbing theif a Unpaid Item Strike. This WILL happen and you will think that you managed to recoup some cash and hopefully strike them into account suspension. Great, some retribution.
  • But not so. In the next day or two you will find that they got the strike and the FVF credit reversed. They do this by using their positive feedback we so trustly gave them as (believe it or not) proof of payment. Check out the Unpaid Item Strike appeals process and you will see Ebay accepts this as proof of payment.

Now, they have your goods, your money and no strikes. You don't even get your FVF.

Buyer 1 : Seller 0

The way not to get ripped off is by waiting for the echeque to clear before posting and not giving feedback until then.

Please vote for this guide to make it more visible so that honest sellers aren't ripped off.

If you are a buyer, don't try it. You will be found out eventually and fraud is a criminal offence.

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