How safe are PayPal payments?

[Muncher]

I sold a couple of phones on eBay, which were paid for through PayPal payments.

Bearing in mind I don't trust phone buyers on eBay as far as I can throw them, how "safe" are these payments? Withdrawing the money to my bank account now but is it possible for the payments to be reversed and if so will I be covered by some PayPal indemnity?

[ehyouwhat]

I used to sell about fifty phones a week through eBay, and often these were paid for via paypal. As a rule of thumb I never released goods until the funds were cleared, meaning they were actually in my bank account. I explained as much in my auctions and found there was no reduction in bids on my products because of it.

On several occasions I have released goods after a paypal payment has been made, only for that payments to be reversed. There is a time limit on when it can be done, but even so it can sometimes happen. I remember once losing £320 on a Sony Ericsson P900 that I sent out as soon as confirmation of a paypal transaction had been made, only for the transaction to be reversed that evening.

Once the money is in your actual nominated bank account, then it's safe I would have thought. But whilst the money is 'in transit' with paypal, I'd always count the transaction as 'on hold'.

>> Edited by ehyouwhat on Tuesday 18th April 10:16

[_dobbo_]

I've only got caught out on paypal once, when my items didn't arrive. Guy had previously had 5000+ 100% positiv feedback, then all of a sudden he got loads of negs, whether he died or something I don't know.

Paypal tried to get my money back but his account was empty. It was only £17 so not really a big deal.

Once the money is in your account it's yours. However if a buyer raises a dispute and paypal rules in favour of the buyer (this wont happen unless you've had a fair bit of communication with paypal) paypal will try to take the money back from your account.

I think the advice above is fine, ensure the funds are cleared into your account before sending the goods.

[JamieBeeston]

ehyouwhat said:

]Once the money is in your actual nominated bank account, then it's safe I would have thought. But whilst the money is 'in transit' with paypal, I'd always count the transaction as 'on hold'.

Nope, the user can chargeback upto 6 months after (possibly more!) and PayPal just roll over and give the money back, you then have to PROVE you sent the item AND that the user Received it.. This is where it gets fun.. Royal Mail only keep signed for proof for about.. 6 months!

Had it happen on a £500 Nokia communicator a few yrs back.. fun it wasn't, ended up sueing BillPay (now Paypal) to get my money back, and even then I only got £380 back!

Credit Cards have ALOT of protection for the consumer, and they can AND WILL support them over the vendor!

[UncleDave]

ALWAYS send recorded to the ADDRESS ON PAYPAL. Always keep proof of posting.
If they provide another address tell them you will not send.

I lost hundreds on a P800 a while back...
The bloke who wasn't good enough to detect a scam, and had is password robbed by the P800 buyer got every penny of his stolen money back. I got nothing - phone gone, and had to pay it all back PLUS fees to Paypal for them 'fighting on my behalf'.

So much for no win no fee.

Dave.