Bitcoin Forum

The problem with PayPal is that it is reversible but from my understanding it is only reversible to one account level meaning that if Bill sends $ to Joe and Joe sends those funds to Ann then even if it turns out Bill was a total scammer Ann's payment could not be reversed.  If such is true would the community have need of a PayPal escrow.  Granted the fees would probably be somewhere in the 10-20% range but given the premiums I've seen elsewhere for PayPal payments that seems cheap.  Basically the escrow would have a PayPal account and when someone wants to buy or sell through PayPal the funds would be resent through said PayPal account and btc held in escrow until the btc seller received the paypal funds and withdrawn them from his account.  This way both parties are secure and even if many days later it turns out the buyer used a stolen CC or account PP would not have any claim to the BTC sellers account.

The only way an escrow service would work on PayPal would be if the escrow held the funds of both parties for the entire 45 day dispute window and nobody wants to wait 45 days to take delivery.

Escrow needs to be held only for as long as the btc seller withdraws his funds or about 3-5 days maximum.  Even if the buyer initiates any type of dispute later the escrow account is at 0 by then.

Beware dude, my 3 years old fully verified Paypal account got fucked by a single big fraud payment.

No, Paypal is easily reversible, and Paypal sucks.

I agree it is easily reversible and sucks donkey ballz but I've never heard of anyone having funds taken and accounts frozen for a payment from an account that got a bad payment and then resent the balance.  It's certainly much better then simply taking a payment directly.  Isn't it?

Advice, Never use paypal for crypto-coin trades - Period