PayPal collection in person fraud processes

By Chris Dawson August 18, 2014 - 6:41 am

One of the problems when selling items which are collected in person is that you PayPal only cover transactions for which there’s online proof of delivery. However when listing on eBay, you are still obliged to offer PayPal as a payment method even if collection in person is the only delivery method offered.

We read recently in the Guardian that PayPal had “introduced new policies” covering fraud when an item is paid for with PayPal and collected in person so had to find out more.

According to the Guardian a PayPal spokesperson said “to help buyers and sellers who have been the victims of fraud as a result of exchanging goods in person. Provided the customer can provide evidence that they reported the crime to the police [which can be done quickly online through Action Fraud], we will consider a goodwill refund.”

We asked PayPal for confirmation and they explained that “It’s not strictly speaking a new policy. What we have done is to formalise a process where we consider goodwill refunds to sellers who have been the victims of fraud through local pick up. In the case highlighted by the Guardian, the transaction (sale of a car) wasn’t covered by seller protection but we still made a refund because the seller had reported the alleged fraud to law enforcement. Each case is considered on its merits”.

It’s good to know that if a buyer chooses to pay by PayPal for an item that they’re collecting that the seller isn’t left without any protection at all – it’s welcome news that PayPal will still consider these edge cases and look after their customers.

  • jo
    3 years ago

    This is good news but still not good enough IMHO.
    If sellers are going to be forced to accept Paypal payments for collection only items they need to have a guaranteed safety net for when buyers claim non-delivery.

    For buyers who claim non receipt after collecting an item perhaps ebay should issue a unique ‘collection code’ for the transaction which the buyer could print off/keep on their mobile phone and then pass the code onto the seller upon collection. The seller could enter the code to validate the collection on the ebay website and therefore have proof the collection having taken place.
    Correct code= release of goods
    No code/incorrect code=no release of goods.

    I’m sure there are better ways, that was just an idea off the top of my head but in any case, I’m sure ebay could come up with some way to decrease fraud in this area. If they actually cared that is.

  • john
    3 years ago

    if its being collected I force cash on collection . problem solved.

    Yet another rule that was brought in for paypal’s/eBay’s benefit.

  • Gerry007
    3 years ago

    We are having a problem with a seller who has been paid with paypal, but beyond them not responding to ebay messages, are saying the items are 30 miles away (collection in person) when their seller account ib only 2 miles away.
    They are not responding to our ebay messages.

    But get this, even though a buyer can open a case for INR within a short period (usually after the expected delivery date) because this is a collection (that’s not happening) we cannot open a case till a whopping 30 DAYS after the transaction date.

  • Toby
    3 years ago

    With the Guardian article, I don’t understand why the Seller did not report the car as Stolen, if the funds where paid fraudulently.

    That way the people involved in the fraud would be stopped by the Police, arrested, charged with the fraud / theft of the car & the car returned to its owner.

    • 3 years ago

      Don’t I remember hearing that a significant proportion of Stolen vehicles, especially high priced ones, are never seen again. The understanding that I have is that within a very short time of being stolen they are in a shipping container and sent to Nigeria, or the Middle East or where ever.

      Could it be that cars obtained by fraud as described might also be quickly loaded into a shipping container and sent abroad? After all if you look out of your window and your car has gone it has to be stolen so onto the Police and report it. If it has been obtained through fraud might it be that there is a bit of confusion which might delay reports to the Police meaning that the car is safely tucked up in a shipping container long before the report is made and it appears on the Police Stolen car list.

      Mind you how good are the Police at finding stolen vehicles? A neighbour of mine a few years ago now had their car stolen by somebody to get home. They drove it until it ran out of petrol and dumped it in a layby on the A30. The Police were driving by it several times a day. Eventually a family friend who knew the car saw it and wondered what it was doing there. So they phoned up and asked the owner.

      She had been phoning the Police daily since it was stolen. Their reply every time was ‘There’s no sign of it so after this long you should expect never to see it again’.

      Luckily she had a spare set of keys. So told the Police where it was and set out to retrieve it. There was no damage just an empty fuel tank. So a can of fuel from the local garage and she brought it home(before anybody talks about all the evidence that could have been in the car remember the racket operated by the Police of massive charges for recovering a vehicle and storage costs because the Police retrieve cars through outside, very expensive, contractors.)

    • 3 years ago

      Sorry but what colour is the sky in your world? 🙂 I can’t see the Police being bothered at all, as far as they’re concerned the car is insured and it’s too much hassle for them. They’ll give you a crime number and not much else.

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