>>> PayPal 'gift' payment – a new tool for scammers…BEWARE! - RC Groups
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Jan 15, 2010, 12:35 AM
Trader Rating: 221
Garret H's Avatar
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>>> PayPal 'gift' payment – a new tool for scammers…BEWARE!


To all traders on RCGroups:

There is a new technique for scamming that all traders should be aware of when making a payment through PayPal for an item bought online. A relatively new feature on PayPal’s website is the ability to send a fee-free “gift” or "personal" payment. Such a payment is solely for the purpose of sending a cash gift -– not for the payment of goods bought/sold on the internet.

You may be saying, “that’s great! – the seller will be happy that he/she isn’t going to be docked a fee for our transaction!” But, what is not readily explained is: this “gift” payment option comes with ZERO buyer protection – meaning, you cannot dispute a transaction if you receive a faulty item or do not receive your item at all. Many online scammers are requesting payment in this way so that the buyer cannot file a PayPal claim – if a seller requests that you pay via this method for a substantial item, please be very cautious as the item could be defective or not exist!


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>>> How to avoid selecting the "gift" payment option:

This feature is somewhat disguised when making a payment on PayPal’s website. After selecting the “send money” tab in your PayPal account, type in the amount you want to send. To maintain your buyer protection and charge the seller a fee, keep the "payment reason" tab on "purchase" and select an option such as "goods." To send money as a "gift payment" or (personal payment), select the tab "personal" and select an option such as "other" or "payment powed" -- toggling back to the "purchase" tab will return to the "normal" (fee included) payment method.

Garret H

- January, 2010
Last edited by Garret H; Feb 07, 2010 at 12:52 PM.
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Jan 15, 2010, 03:49 AM
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ghostmechanic's Avatar
Deja Vu
Jan 15, 2010, 04:21 AM
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jcstalls's Avatar
Great info,


Jared
Last edited by jcstalls; Jan 15, 2010 at 06:19 AM.
Jan 15, 2010, 04:27 AM
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ghostmechanic's Avatar
Jared that's a link. Put down the drinky drink lol.
Jan 15, 2010, 10:53 AM
Trader Rating: 221
Garret H's Avatar
Sorry, Ghost -- didn't mean to copy your thread (I didn't know).

This one is going to be made into a sticky for the trader talk section.

I have seen too much of this lately and thought it would be good to have a warning in a noticeable place!

Garret
Jan 15, 2010, 11:27 AM
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Dare I say it?
Jan 15, 2010, 11:34 AM
Trader Rating: 117
Too much power = Just enough
misplacedtexan's Avatar
First is knowing who you are dealing with if you choose to use this option.If the buyer and seller have good ratings,and it's alright for both parties,do it.As I have several times,and have had no problems.It's good to save money when possible,so you can put it towards another item you need,(which is always for me).

Oh,and I agree with garrett about the "gift" option,either use "other" as garrett suggests,or "money owed".
Jan 15, 2010, 11:50 AM
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Last edited by angelfood; Jan 15, 2010 at 12:20 PM.
Jan 15, 2010, 12:04 PM
Trader Rating: 221
Garret H's Avatar
As I said, guys -- this is just a warning sticky...Mike K. is going to update it shortly. It is simply meant for those who do not know about the "gift" payment option and do not know it is selected by default. Hopefully, (like the other "warning" stickies) it will help with scamming issues (I have seen cases of this happen this very week, and I have had people send money to me by way of a "gift" payment and not even know anything about the option).

Garret
Jan 16, 2010, 06:10 AM
Trader Rating: 233
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ghostmechanic's Avatar
No problem Garret. I guess I've just become one of those old forum regulars that gets crabby & thinks that people should search before asking questions or posting.

BTW, I request that buyers don't use the gift option simply because I include the fees in my price or at least take into account & if they send it that way there's no friggin address to use click & ship. So then I have to have them send me a penny payment to generate the label. I have requested the gift once from a buyer but that's because he talked me down so low & that was the only way I wouldn't take such a big loss.
Quote:
Originally Posted by Garret H
Hopefully, (like the other "warning" stickies) it will help with scamming issues
I doubt it. Most people don't ever bother to read them. Just look at the number of threads every week asking how to do feedback

Not much different than the countless threads started that have NOTHING to do with trading on here. I've given up reporting them. Half the time nothing gets done about them.


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