Paypal froze $510 in my bank account. Beware, it can happen to you!

[skmei.australia]

I just want to draw everyone attention to "Charge Backs", otherwise known as reversals.

We've all heard these horror stories, but never thought it would happen to us, but, I just had my first charge-back, in the 7 years i've been selling, and I'm stunned.

I listed an old WWII comm set (communication set) with morse code key, and bakelite telephone receiver, it sold for $510. Nearly 4 weeks went by, and no dramas, but I went to purchase groceries down the road, and my transaction was declined (using eftpos), I knew I had more than enough to cover the purchase.

I logged onto my internet banking, and found the balance had been frozen. I could see the balance of my account, but it was not "available". (the same if you pay an $80 bill, that wasn't processed immediately, it will say: "Balance $100 - - - - - Available $20"

I contacted payPal, and they said a customer had reported to their bank and credit card purchase that was not authorized.

The short version is, I had to provide evidence that the purchase was authorised. Luckily for me I had a tracking number to provide, and the buyer was stupid enough to leave positive feedback 2 weeks prior.

Once I provided that evidence, my funds were still frozen for more than a week, I rang them again about it, I was put on hold, then finally told they would release the funds.

Moral of the story: Accept PayPal (which we all really have to anyway) but un-select "Accept All Credit Cards Via PayPal".

If I didn't have that evidence, I would have been short of pocket $510 AND the item I listed.

Beware

[skmei.australia]

I just want to add that I now transfer the funds from bank account registered to Paypal, to a seperate savings account, via internet banking.

[lyndal1838]

---

@cadmau6 wrote:

I just want to add that I now transfer the funds from bank account registered to Paypal, to a seperate savings account, via internet banking.

---

While this is a good idea to avoid the situation you experienced, it will not stop paypal coming after you for any money they believe you owe them.

An Unauthorised Credit Card transaction or chargeback is not necessarily started by the buyer....it is not unknown for the buyer's bank to initiate it for whatever reason and the buyer is unaware of it.

[clarry100]

Yes we had exactly this happen to us on one of these.

We contacted the buyer about it and they replied saying they had no knowledge of it and would be contacting their bank about it.

The next day they came back to us apologizing and offered to repay us anything we lost, which they did by bank transfer.

I still don't know the reason behind it but seems it was something to do with the bank, not the buyer, as they appeared honest.

[roseworthy11]

I am sorry that that happened to you. Glad it worked out finally.

I went to take your advice and untick the box about accepting credit cards, but I can't see that there is a box to untick. On each listing, there is only one box to tick that a seller takes paypal and included with that is that you will accept credit cards, I can't see that the option can be unticked.

I would appreciate further details about how to opt out.

thanks

[lyndal1838]

If you accept paypal you have to accept whatever funding source that the buyer chooses.

In the past some of the other ebay sites gave sellers the option of refusing credit cards but that may have changed.  There was a time when UK sellers could opt out of accepting CCs.