How I recovered money from a fraudulent order via PayPal

I thought I was recently fleeced for the purchase of a beauty tool I made online. No goods arrived after nearly a month and no updates were given about the status of the shipping either. After I wrote to the store, they claimed that they did not receive my money. Good thing was that I paid via PayPal and I remember they have a resolution centre to faciliate purchase disputes. Someone I know also confirmed that she had successfully made various claims through their resolution centre and so I went ahead to make my claim. Well, three weeks after I filed my claim, the money is back in my account.

Resolution process is easy
So this is one of the other reasons I’m loving PayPal. The online payment system allows us to make and receive payments really easily, and now, there’s added protection when I use the system to pay for my purchases too. The resolution process isn’t complicated either. If you do not receive your goods and the other party does not respond, you can visit the resolution centre and open a dispute within 45 days from the date you sent payment. I had to proceed to step 3 to escalate the case as I did not hear from the party after three days. After about a week or so, PayPal wrote to me that they have concluded investigating the case and decided in my favor. They were able to recover the funds I transfered fully and credited them back to my account promptly.

May take longer in complicated cases
I guess my case was also pretty straightforward as the seller did not counter dispute. In cases when they do, I suppose it would take a longer process to recover the funds. In addition, I was lucky to recover all my funds as the seller had sufficient funds in the account. I read that if the seller’s account has insufficient funds to complete the refund, PayPal will take appropriate action against the seller’s account, which may include limitation of the seller’s account privileges.

It’s PayPal or no purchase
But still, I would rather use PayPal to pay for my goods online than just using my credit card as the former helps provide added protection against fraudulent orders. In fact, unless I’m really certain of the seller’s credibility, I usually prefer not to purchase the item if they do not offer PayPal as a payment system.

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  1. Rennie says:

    Awww…sorry to have that happen to you. The same thing happened to me about a few years ago. I never really bothered filing a resolution since it was only $5 though…

  2. AtelierGal says:

    So, Paypal can deduct the amount from the seller and refund you? Wow, that’s makes purchasing safe! Is it still possible to withdraw funds from our local banks?

  3. sesame says:

    Yeah, it’s a bit of a hassle. But the amount I paid was in 3 digits so it was good I filed and managed to get the money back. *phew*

  4. sesame says:

    Yes, they have the authority to make the deduction. As for transferring funds, yes too! They just implemented this about a couple of weeks ago and we can now transfer funds from POSB or DBS to PayPal. Process takes about 1 to 2 days.

  5. Natalja says:

    I love Paypal. As a seller I feel quite protected too, as Paypal equally watches out for buyers and sellers. Tracking number confirming delivery or non-delivery is all you need to resolve the issue.

  6. lttlnative says:

    I would be careful with Paypal also I had more trouble with just them then anyone else I ever used. One time I was getting ready to go on vacation to Mexico, and some one from Pay pal had taken 890.00 out of my account! I almost started crying! I hadn’t used them for almost 5 years after! then I closed out the account and started one up again 5years later and it happened again! I was so upset I called and taked to everyone there! I got all my money back but there are new regulations now and I dont think you can get all your money back now.
    they asked me if I purchased something while I was in California. I told them I have not been there for 25 years!
    Man! It was a mess! So be aware of what you order! AND WATCH OUT!!!!

  7. sesame says:

    That’s good to know. I like the tracking information too. But what do you do with buyers are are “fraudulent” as in they claim non receipt of items when they actually do. Are there many cases like that?

  8. sesame says:

    Hmm…I’ve heard of some horror stories too but I guess, as a payment system, they’re not 100% full proof as there are probably security issues as well. The same applies to credit cards. Btw, where are you based cos I wonder if this might be more rampant in certain regions.

  9. Natalja says:

    Thankfully, I’ve encountered it only once. Tracking was saying that item was delivered, but the “customer” was screaming on the phone that she hasn’t received it. Long story short, truth or lie, I’ve sent her a replacement as the item was inexpensive and we strive for superior customer service. For larger orders we ship them insured, just in case. But tracking is usually enough to prove that the item was received. In this case Paypal is on the seller’s side. Most of the customers and people in general are decent and wouldn’t pull tricks like that. Karma…..

  10. Victoria Lewy says:

    Glad you were able to get out of it without a mess!

    I think that if you are using PayPal for purchases made online they are a great company, because they are mostly on the buyer’s side. However, if you are using them as a way to receive money for sales you may want to reconsider.

  11. sesame says:

    I believe most pple are clean and honest and do not set out to do stuff like that. But I was really curious cos I’ve heard of some stories from other supplies and in events like that, if PayPal rules in their favor, then it’s quite a shame.

  12. sesame says:

    You could be right cos I’ve heard problems of seller having trouble getting big sums of money out. But yeah, as a buyer, I get some level of protection.

  13. yay says:

    it never happen to me but i read it numbers of times it happen to various people….that’s why i hate buying anything online…. not even books online…back a couple years ago i bought something (makeup or mineral powder from well known company)…i order through phone…. i stupidly gave them my credit card information… the product did arrive & later i found out they charge additional 2 times to my credit card every months for the next 2 months… i finally called them & told them… i only received the product 1 time…. not 3 times…. they were arguing yea they did sent out…. i didn’t know how to chase it…. i can’t tell it’s their error or post office error that i’m not receiving the products… i finally gave up & told them stop charging me… i don’t want it… i still haven’t finished using the product i bought….it was nightmare…. i never got the money back they charged me….

  14. sesame says:

    Sounds like they either made a mistake or it was deliberately putting your account on auto order. That’s why I don’t like to use credit card if possible. But if I have to, I will try to verify the credentials of the company first.

  15. fwy says:

    I had never make any online purchases even if it is a coveted brand that I cannot get in Singapore.

  16. sesame says:

    You haven’t? But that’s fine because not everyone likes the idea of online shopping. It’s still good to have instant gratification!

  17. jing yi says:

    do we still have the resolution centre if i ordered online but they ship to singapore.
    example if i ordered from sasa,etc. do we still have the protection for overseas orders?

  18. sesame says:

    Yes, the resolution is for any sellers as long as payment is via PayPal. Mine case was from an overseas order.

  19. jing yi says:

    yeah!!! thats was such a great help!
    but was jus afraid that the procedure would be complicated.. ==’ imma a noob at such things… but is the “resolution centre” online or really in singapore and u need to GO there? =]

  20. sesame says:

    No, it’s all online within the PayPal system. No need to go anywhere. Just follow the guidelines.

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