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Old Nov 13, 2009, 09:56 AM
1 paycheck away from homeless
ghostmechanic's Avatar
United States, KS
Joined Mar 2006
4,574 Posts
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Careful!
A new possibility for scamming. I just wanted to warn unknowing members.

I just wanted to warn anyone that might encounter this. Paypal a while back added a new option for sending payments as a gift. The recipient gets charged no fees for this type of transaction. But neither party has a leg to stand on because it's supposedly meant for sending money as a gift & not for buying tangible goods. I have used it & I think it's an ok option if you for sure know you can trust the other party. But for God's sake don't try to use it for ordinary transactions with someone you have no prior experience with.

I am a member of another forum that deals with car audio & one drawback to that hobby is it's mostly kids. When trying to purchase some things with a few different sellers, they each tried to get me to pay that way. I refused & started seeing that it could become a huge problem really quick on forums that allow trading. Paypal's "protection" is already a joke. With this form of payment you don't even have it.

You have been warned. That is all
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Old Nov 13, 2009, 10:18 AM
3D Electric Flyer
Tada's Avatar
South Carolina
Joined Jul 2009
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Quote:
Originally Posted by ghostmechanic View Post
I just wanted to warn anyone that might encounter this. Paypal a while back added a new option for sending payments as a gift. The recipient gets charged no fees for this type of transaction. But neither party has a leg to stand on because it's supposedly meant for sending money as a gift & not for buying tangible goods. I have used it & I think it's an ok option if you for sure know you can trust the other party. But for God's sake don't try to use it for ordinary transactions with someone you have no prior experience with.

I am a member of another forum that deals with car audio & one drawback to that hobby is it's mostly kids. When trying to purchase some things with a few different sellers, they each tried to get me to pay that way. I refused & started seeing that it could become a huge problem really quick on forums that allow trading. Paypal's "protection" is already a joke. With this form of payment you don't even have it.

You have been warned. That is all

I'm glad you brought this up because I had no idea you aren't protected as much anymore...To me its worth the paypal fees to be covered.
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Old Nov 13, 2009, 10:38 AM
1 paycheck away from homeless
ghostmechanic's Avatar
United States, KS
Joined Mar 2006
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This isn't meant to be a paypal bashing thread but I can tell you from 2 personal experiences that there is no such thing as paypal protection. Yeah I had my butt saved a couple of times by them but eventually you'll get burned. Several of the people I've been talking to on that other forum have told me about their horror stories as well.

My most recent screwing was a deal that went south with a guy that sold me an item & never came through. I was as patient as always but after a while started getting suspicious. After investigating I realized he was scamming several people at the same time on ebay by not sending items. He had joined 2 months prior to our deal & had over 200 feedback that was 100%. All the sudden he got 6 negatives within a week after my deal. Paypal actually ruled in his favor & gave me no reason why! I had over 800 confirmed sales through that account.
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Old Nov 13, 2009, 11:16 AM
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Rogersville, Mo
Joined Jun 2008
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Thanks for the Heads Up!!!!...Billy
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Old Nov 13, 2009, 07:54 PM
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USA, CO, Fort Collins
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Thanks for the info -- I had no clue that was the case with the "gift" payment.

As for PayPal, I was very pleased with their customer service and help when I was scammed on Ebay. I bought a trailer hitch from an (get this) auto parts store in Texas (they had tons of sales and good feedback). A couple of days after I bought it, they sent me the UPS tracking info, but they never gave the item to UPS for shipment! Two weeks passed and they never sent it -- I tried calling and emailing with no luck -- their website listed three different phone numbers: one went to some vitamin/supplement place, one always went to voicemail, and the other's automated directing system thingy didn't work -- it always looped back to the beginning!! I sent numerous emails and never got a response. Finally, in my anger, I left a message saying "If I don't hear from you today, I will file a PayPal dispute." Of course, he didn't call me back!

I called PayPal; they explained to me the process of disputing a transaction in good detail and helped me through it -- from what I understood, the seller had to respond to my dispute within a week (or 10 days...something like that) or I got my money back. He sent the item two days after I filed the claim! I guess he did know how to check his email.

Garret
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Old Nov 14, 2009, 06:05 AM
Mt. Dora, Florida
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Joined Dec 2006
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Well if you bought an item and mark the payment as a gift to try andskirt around Paying Paypal their fees, it's FRAUD anyway so I don't blame Paypal for hangin you out to dry.

It's like buying a used car for $5000.00 and then putting on the title that you only paid $2500.00 keep from having to pay the additional taxes on the purchase. But then something goes wrong and you try to sue the seller for selling you a lemon.
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Old Nov 14, 2009, 10:10 AM
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USA
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I just recently had a payment sent as gift,, confusing because there was no shipping address. So, its also possible for the buyer to claim non receipt. However,, I trust this guy.

In future dealings though,, I think I will not accept gift payments for shipped goods.
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Old Nov 18, 2009, 08:25 PM
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Thanks for the tip. I have noticed some sellers requesting payment be sent as a "gift" to avoid the fees. I wasn't aware doing so would eliminate Paypal's buyer's protection. Knowledge is power....thanks!
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Old Nov 18, 2009, 08:32 PM
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Madera , Calif.
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...
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Old Nov 18, 2009, 11:42 PM
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Spokane, Washington
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Yes this should be made a sticky. Good post ghost.
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Old Nov 18, 2009, 11:59 PM
Garret H's Avatar
USA, CO, Fort Collins
Joined Sep 2007
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I just received payment to cover shipping of a free item -- the gentleman sent the funds as a gift payment, which was nice because there was no fee. But, neither the transaction info in my account nor the notice email list his address! In this case, it is no big deal because the payment is only $2, but I see where this can cause problems with bigger transactions. When I "view the details of this transaction," it just says, "No address on file for buyer; seller protection: not eligible; how to protect yourself: contact the buyer to confirm the purchase - save all correspondance with buyer" -- like that would help...what about "no buyer protection"?!

I will have to start putting on my ads: "no gift PayPal payment"!!!

Great thread, Ghost.

Thanks,
Garret
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Old Nov 19, 2009, 03:24 AM
1 paycheck away from homeless
ghostmechanic's Avatar
United States, KS
Joined Mar 2006
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I have to be honest here, as far as paypal protecting anyone... the only thing they really care about protecting is their cut. I have been down this road many times & ONE time they actually helped resolve an issue & saved my butt. TWO times I've burnt badly.

One was someone hacking a browser plug in of theirs that I installed & they charge my account $285 in fraudulent charges. They charged 5 the "one time use" electronic credit card #s FIVE times each. Paypal said it came from my computer & it was legit & that I owe them the money. I had to ditch an account I had established over several years with several sales accumulated.

The other time was when I was using my mother's account (since I can't have my own now) & I bought some stuff from a guy that was on ebay but we did the deal outside of ebay because he could lower the price & discount shipping (he had more than 100 of 100% pos) & the guy never sent anything. Later he got 7 negatives in a row for the same thing but yet Paypal said they couldn't rule in my favor. No explanation why. No return email for that. When I called they knew nothing about it. I got burned out of $160 that time.

I just wanna say this... you can praise paypal all you want (I used to) but eventually you will get screwed by them & be crying about it. It's like Russian roullette as far as I'm concerned. I just can't understand why Google checkout can't seem to catch on. It's safer, cheaper & backed by a MUCH more reputable company.

But still yet, the gift thing is just way more dangerous. You don't even have a leg to stand on for never getting a purchase. As far as a seller, I can only assume since it says "gift" that there's no way for the buyer to come back & try to reverse it? I dunno.
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Old Nov 19, 2009, 04:58 AM
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King NorthCarolina
Joined Sep 2004
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I sent Garret the gift paypal for $2.50 to cover shipping on a free item, as I only use a credit card with paypal by sending it as a gift I paid the 37 cents in fee's to me this is only fair. When making a purchase I would never do this as I would then have no protection at all from paypal. The only one who can get screwed by this is the buyer. Danny
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Old Nov 19, 2009, 10:06 AM
Garret H's Avatar
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Quote:
Originally Posted by tillthefourth View Post
I sent Garret the gift paypal for $2.50 to cover shipping on a free item, as I only use a credit card with paypal by sending it as a gift I paid the 37 cents in fee's to me this is only fair. When making a purchase I would never do this as I would then have no protection at all from paypal. The only one who can get screwed by this is the buyer. Danny
Yeah, that is what I figured; like I said, I don't care at all. I used to only use my debit card to send PP, so I know what you are saying. I just thought it was strange that your address wasn't listed -- I wasn't sure if that was because of the gift payment, or I figured you just used your card to send the funds.

Like I said, it was only $2.50 -- I don't care...it was just to cover shipping; I trust the regulars around here. I just had never received a payment that looked like that and was posting it as an illustration. I appreciate not being docked the fees; so, thank you. I feel bad that you get docked a fee though...

Garret
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Old Nov 19, 2009, 10:45 PM
1 paycheck away from homeless
ghostmechanic's Avatar
United States, KS
Joined Mar 2006
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Tillthefourth, this thread nor was anything I posted aimed at you. Or anyone on this site for that matter. I just wanted to make it know before it started happening on here. As far as the deal between the 2 of you, I can't see a thing wrong with doing that to cover shipping for a freebie.

There's no shipping address because nothing was supposed to ship.
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