Bitcoin Forum

Hey guys, I'm new around here.

A few months ago I was doing business with PayPal selling digital goods online. There was a lot of work so I decided to entrust a friend with a lot of goods and he started selling them and sending the money minus his cut (20%) to my PayPal.

After our dealings were over, however, he decided to chargeback a few of the payments he made. I had an issue with PayPal before this and they told me they will be closing my account and let me withdraw my money, which I did. So now ("now" being 3-4 months ago), months later my PayPal balance is at 0 and I'm done with them, when I get mails telling me my dear "friend" charged back over $ 4.000 from me and they are demanding I put money on my account.

He claimed unauthorized transactions through his bank. Payments were sent as GIFT. Before this he also tried to chargeback all gift payments made to me, about $ 8.000 total, claiming someone went on his paypal account. Luckily, PayPal denied his chargeback after investigating.
I explained to them how this guy is attempting to steal money from me and that I am in no interest in helping them give a thief money from my pockets. I made screenshots of all our Skype conversations, added neat comments and sent it to them and they denied my appeal.

Few weeks later I got a letters from a collections agency, demanding I pay an initial sum of my debt to PayPal (totaling about $ 4.500).

I actually even went to a lawyer for this. Just two weeks ago he mailed me telling me the case isn't going well...

Anyone know what to do with this? I really don't want to give PayPal compensation for the money they literally gave away to a thief.

I don't know if it's allowed, but I'll gladly offer some compensation if someone can help me out with this.

Thank you

I actually never faced such situation because I don’t use prefer PayPal (come one we have bitcoin now), and alternatively I live in a country where I can’t send payments from my PayPal account (unless credit card linked to the PayPal account) and any money we receive (even a penny) is auto withdrawn in default bank account so any chargeback attempt would fail (unless credit card is linked). I think preferring bitcoin (bitpay if you want to management tool for it) is the only solution for such problems.

You know, after this I haven't had a PayPal account and it's so inconvenient. Everyone can pay with paypal, not so much with bitcoin since it's a bit troublesome for someone who's never worked with it before.

One can still chargeback from you if your account is empty. Your PayPal balance will simply go negative and they will demand you to restore your balance.

If collection agencies were involved, I really don't think that the forum could be of any help to you. We don't know your jurisdiction and can't (or better should not have) full access to your evidence to help you built a better case. I think that the most responsible think you could to is talk to a lawyer said to have experience with e-money. It'd be a good counter-defense since the other party also got agencies involved.

Paypal charge back is like a cancer and it has always been there, you can use google to find millions of complaints from different merchants where they got ripped off because of this feature.

and your situation is a bit unique because it is a large amount (i am assuming dot (.) is not decimal and your value was 4500) so you should officially file a complaint and follow it up with your lawyer, hopefully if you provide them with proof they may fix it.

but move on to bitcoin :D you will rid yourself of all that headache once and forall.

You cant do anything about it since its their rules of paypal and as many members mentioned above this feature is just like a cancer.Paypal chargebacks do have advantages but mostly i saw on users feedbacks are always negative thing and this thing is also used by most scammers because they see this thing as an advantage.

I'm from Belgium. As I said, I already talked to my lawyer and spent money on the case. He told me recently the case isn't going well and asked if I want to submit a complaint to the ECC (European Consumer Centre). I think he just wants more money so he'll say whatever to keep the case going..


Believe me I want to. The problem is that none of my buyers use bitcoin and therefor I have to rely on PayPal, Skrill.



The rules of PayPal say "We can give your money to a thief and officially put you in debt to us"? That's so fucked up

I don't think theres anything you can do. IIRC PayPal doesn't take any skype evidence, since they can be faked. Basically if you are the seller, you are fucked if the buyer goes for chargeback. Unless you have something like a written and signed agreement, PayPal will fuck you over. Paypal is always nice to use as the buyer since it covers from anything... As a seller I think its a suicide to use PayPal.
Sorry to hear man, maybe u can call the ECC and ask if theres anything they can do about it if your lawyer files a complaint.