NEVER EVER deal Bitcoins with PAYPAL (F&F too!)

[shield132]

I sold my Bitcoins through Paypal Friends and Family payment thinking it would be "safe".
I was TOTALLY wrong.
The scammer issued a chargeback claiming it as "unauthorized purchase".
I sent all the chat logs and the screenshot of the Paypal payment from the buyer and the receipt from Paxful including PGP signature, but I doubt if I will ever win.
Feels so sad that this BS has happened in the end of the year.
I'm stuck between either paying the chargeback or closing my bank account and debit card, never using Paypal again.

While paypal's refund feature is really the amazing one, it has also huge disadvantage and that's what you say. Not only personal transactions but a lot of ebay buyers say lies including: I haven't received item, it's damaged, it's doesn't have original smell (fragrance) and etc. What can we do? Nothing but to return money in most cases. Paypal is the most acceptable payment for buyers and for that reason sellers have to agree with that but why do you hang on your customer sellers?
OP pp/btc deal isn't easy, you have to trust user or if he/she isn't trustworthy, then keep in mind that your money isn't your for a while.

[Gyfts]

This is the issue with all Paypal transactions. The buyer is virtually always favored when it comes to disputes and if there are reversals through credit card companies, the buyer is unequivocally favored and money is taken directly from Paypal which means Paypal takes away the balance from your account. This is the reason why you should never deal virtual goods, let alone Bitcoin, through Paypal because in the event of a dispute, Paypal asks for a tracking number to insure a product was delivered to a buyer. If you cannot supply any sort of tracking number as is with digital purchases, you're shit out of luck.

If you look at Venmo, Skrill, CashApp, all reversible garbage that operate on the same mechanics of Paypal.

[romero121]

This is happening commonly with the people. With the chargeback policy scammers are the one who benefit. Not only with cryptocurrency exchange, but this has happened with other services too. Same issue I encountered with the banking system while selling bitcoin. Later I was issued a notice to send back the amount from the banking sector stating a police complaint has been raised against me. Somehow I released the fund and got out of the issue.

PayPal can be trusted to make transactions with trusted people. Op could've made the deal with the trusted traders from our forum.

[peter0425]

I sold my Bitcoins through Paypal Friends and Family payment thinking it would be "safe".
I was TOTALLY wrong.
The scammer issued a chargeback claiming it as "unauthorized purchase".
I sent all the chat logs and the screenshot of the Paypal payment from the buyer and the receipt from Paxful including PGP signature, but I doubt if I will ever win.
Feels so sad that this BS has happened in the end of the year.
I'm stuck between either paying the chargeback or closing my bank account and debit card, never using Paypal again.

you should not blame Paypal mate because first it is your mistake not researching r asking here the community if this transaction is safe.
because for many threads here specially in service it is more often discussed to stay away from Paypal/bitcoin or cryptp i mean because this is irreversible so all transaction made can be scammed by the other involve.make this as learning mate.

[posi]

This is the issue with all Paypal transactions.

Its necessarily not a problem of all paypal transaction if the payment recipients take the require protection steps by trading with trusted users.

I sold my Bitcoins through Paypal Friends and Family payment thinking it would be "safe".
I was TOTALLY wrong.
The scammer issued a chargeback claiming it as "unauthorized purchase".
I sent all the chat logs and the screenshot of the Paypal payment from the buyer and the receipt from Paxful including PGP signature, but I doubt if I will ever win.
Feels so sad that this BS has happened in the end of the year.
I'm stuck between either paying the chargeback or closing my bank account and debit card, never using Paypal again.

you should not blame Paypal mate because first it is your mistake not researching r asking here the community if this transaction is safe.
because for many threads here specially in service it is more often discussed to stay away from Paypal/bitcoin or cryptp i mean because this is irreversible so all transactions made can be scammed by the other involve.make this as learning mate.

It clearly his mistakes and i don't need him to ask the community about the PayPal transaction reverse policy cause it is well stated in the PayPal rules of restrictions on transfers or withdrawals from PayPal accounts. I think the problem is people being lazy to read and understand what to do which was also the precise reason why some newbies are slaughtered through their crypto investment.

[bitgolden]

This is happening commonly with the people. With the chargeback policy scammers are the one who benefit. Not only with cryptocurrency exchange, but this has happened with other services too. Same issue I encountered with the banking system while selling bitcoin. Later I was issued a notice to send back the amount from the banking sector stating a police complaint has been raised against me. Somehow I released the fund and got out of the issue.

PayPal can be trusted to make transactions with trusted people. Op could've made the deal with the trusted traders from our forum.

If this is the case with paypal than how could we even deal with trusted people? Because as far as I know, paypal implies chargeback even after few months passed so it would never actually get to know us about which dealer has asked for a chargeback. Paypal should sooner find out some remedy for this bug as it is really eating a lot of profits from the traders.

Paypal is a better medium to directly purchase bitcoins with our fiat currency and we could even directly transfer from our bank accounts but this case with paypal might make paypal loose a number of good traders. Paypal is a centralized platform so there would be questions to be asked ahead if they charge a police FIR.

[SquallLeonhart]

I sold my Bitcoins through Paypal Friends and Family payment thinking it would be "safe".
I was TOTALLY wrong.
The scammer issued a chargeback claiming it as "unauthorized purchase".
I sent all the chat logs and the screenshot of the Paypal payment from the buyer and the receipt from Paxful including PGP signature, but I doubt if I will ever win.
Feels so sad that this BS has happened in the end of the year.
I'm stuck between either paying the chargeback or closing my bank account and debit card, never using Paypal again.

you should not blame Paypal mate because first it is your mistake not researching r asking here the community if this transaction is safe.
because for many threads here specially in service it is more often discussed to stay away from Paypal/bitcoin or cryptp i mean because this is irreversible so all transaction made can be scammed by the other involve.make this as learning mate.

There actually are a number of scammers here in cryptocurrency markets. Scammers always tend to find newer ways to scam users. PayPal transactions were a boost for all those scammers. Even I went through such people who were selling and buying bitcoins with PayPal but none of them were trustworthy even though they were dealing with a larger amount.

These kind of trades usually seems riskier because the people/scammers who use PayPal to transact such deals might not even use their own personal PayPal accounts but those accounts which are hacked or sold in the black markets so it would never allow PayPal to reverse your funds again from such persons. This is the major reason behind why I stay away from PayPal trades.

[jerry0]

If paypal is this bad, then why is paypal the number 1 option or only option for ppl who sell on ebay?  If that is case, couldn't lot of ppl just chargeback on products bought on ebay or that is not possible if seller make sure there is something is receipt that prevents this?  Imagine selling a computer or expensive electronic?  What about clothes?  Or what about cable wires or cheaper products?



Also ppl can chargeback more than 6 months later?  I heard 6 month was the max.



Also if you accept paypal from someone, wouldn't you need to trust this person close to 100%  I mean if you accept it from stranger, how would you know its even this person's actual paypal account and not a hacked account.  Is there anything that helps you with this?  Only thing i can think of is ask them for their passport and have them take a picture of themselves holding their passport?  The same with bank transfers.  Wouldn't you need someone to confirm its their bank account before you transact? 



But if you have them deposit cash in bank, that is safe as long as the banking day is closed right?  I heard a long time ago ppl would deposit cash in someones bank account, show them receipt, then go back to the bank and tell them they deposited into wrong bank account.  Is there anything to prevent this?



Because it seems its only wire transfer and cash deposit in bank and bank closes that day where you don't have to worry right?  I heard skrill, venmo and cashapp all are reversible.  But perfectmoney is as well?  Can you use that in the US?

[AdolfinWolf]

If paypal is this bad, then why is paypal the number 1 option or only option for ppl who sell on ebay?  If that is case, couldn't lot of ppl just chargeback on products bought on ebay or that is not possible if seller make sure there is something is receipt that prevents this?  Imagine selling a computer or expensive electronic?  What about clothes?  Or what about cable wires or cheaper products?

You need to provide extensive proof, sellers have a track record and usually their personal info + adresses linked to their accounts, - and paypal stems from Ebay and vice versa. (All these factors probably contribute to paypal being used as n#1.)
I imagine that there are numerous fraud systems in place from preventing that- asking documents/bank statements for large transactions, logging IP's, asking for signatures when receiving packages, etcetera.

Also ppl can chargeback more than 6 months later?  I heard 6 month was the max.

I believe only if the payment is made through a credit card company. - he could tell the credit card company the payment was fraudulent, even after 6 months, and I believe that there's a chance some providers will reverse the transaction. Not sure though.

Also if you accept paypal from someone, wouldn't you need to trust this person close to 100%  I mean if you accept it from stranger, how would you know its even this person's actual paypal account and not a hacked account.  Is there anything that helps you with this?  Only thing i can think of is ask them for their passport and have them take a picture of themselves holding their passport?  The same with bank transfers.  Wouldn't you need someone to confirm its their bank account before you transact? 

For high value and high risk transactions- that would be a good idea.
But one can also photoshop bank statements and other documents, so that still isn't waterproof.

But if you have them deposit cash in bank, that is safe as long as the banking day is closed right?  I heard a long time ago ppl would deposit cash in someones bank account, show them receipt, then go back to the bank and tell them they deposited into wrong bank account.  Is there anything to prevent this?

You could probably open a dispute if it was for certain goods.


I'd also like to mention that it is against Paypal's TOS to trade Bitcoin -> Paypal, hence why there is barely any sellers' protection and vice versa.