Paypal chargeback

[sann111]

Hey guys,

Somebody purchased bitcoin worth $3000 on localbitcoin from me using paypal and paid through Friends and family option. Now she opened a
dispute on paypal saying the payment was unauthorized. Please advise on what to do.

[1713522595]

1713522595

[1713522595]

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[Titanos]

Unfortunately, i think you are going to loose the disput. It's not safe to accept paypal for electronic goods because the other side can easily refund his money.

[boy130]

You're going to lose this dispute I'm sorry to say. Even Paypal friends & family payments don't protect you against chargebacks, as they open the dispute with their bank directly, rather than going through the Paypal resolution process. Unless you have absolute, undeniable proof that the true account holder paid you, then you don't stand the slightest chance. In the Paypal terms and conditions it actually says cryptocurrency payments are not covered under seller protection.

[sann111]

There must be a way. Its my hard earned money I can not afford to lose. Please someone anyone you can private message me if you like just
give me some tips to prevent losing my money as its under dispute now.

[aquantivis86]

This sort of situation is exactly why i long ago stopped taking paypal as a payment option in my online sales. I am terribly sorry to hear that you are being scammed out of such a large amount.

[bitart]

There must be a way. Its my hard earned money I can not afford to lose. Please someone anyone you can private message me if you like just
give me some tips to prevent losing my money as its under dispute now.

If the buyer is from a different country, you can do nearly nothing. If he's from the same country, you can try the police, but that's really hard to prove what has happened.
Paypal won't care about your problem, because of the Friends and family, as it's not a payment sent to a merchant...

[Baimovic]

I do not understand, why not legitimate? and what is the main problem?

I think if the system has transferred the amount of bitcoin to the buyer by using a secondary wallet, in accordance with the buyer and seller agreement, with the private key exchange, and the result can be accessed by the recipient, then the transaction is valid.

I think you should settle a dispute with him.

[kidamazo]

This is so sad, that people sometime are like this, this is your hard earned money...try to ask some high ranked guys here, Pray!

[bitfocus]

try fighting with local bitcoin communication data / invoice etc. (I have no idea bout localbitcoin system) to overcome the situation. but I don't think you will make it.

[vitimers]

PayPal always gives verdict in favor of buyers for digital items. You should however, give it a try by submitting all the proofs like your conversation with the person.

[jseverson]

I do not understand, why not legitimate? and what is the main problem?

The sale was legitimate. The buyer was claiming it was illegitimate.

The main problem is that OP sold accepted Paypal payment for his Bitcoins. Anyone who buys anything through paypal can try to get a reversal by claiming that they, as the account owner, did not initiate the transaction. That means they get their money back and your coins, and since Bitcoin transactions are irreversible, there's nothing you can do about it. It's standard practice to never accept Paypal payments for cryptos.

To OP, you can try to fight for your case by showing as much proof as you can to Paypal, but you're screwed for the most part.

[Kokondao]

You better show proof of it all, and you let me speak and my advice do not be too hara if you are really innocent.

[samoilov]

All you can do  is that submit all the proofs of the transaction and deal to PayPal. It also depends on the past transactions and charge backhistory in your account.

[al maruf]

Unfortunately, you have done a wrong thing, you can not take it back, but he took it back, you have been caught in the scam, accepting PayPal for electronic products is not safe. Because, he can get his money back. There is no need to do such work in the future. You can not get the money back.

[ranman09]

This scares me a lot. I am thinking of using paypal for a website store I am going to build online. Good thing I've read this.

Im sad for you man, may be you can send them screen shots and chats. But the fact that the Policy doesn't cover cryptocurrencies is a mess for you.

[Minerall.io]

Never buy or sell crypto via PayPal. PayPal is refundable. That's why there are no exchanges with PayPal payment option.

[franky1]

Hey guys,

Somebody purchased bitcoin worth $3000 on localbitcoin from me using paypal and paid through Friends and family option. Now she opened a
dispute on paypal saying the payment was unauthorized. Please advise on what to do.

this is why reputable exchanges do not accept paypal/credit cards. due to what has been known for years as "chargeback scammers".

yes visa and mastercard have actually themselves banned purchases of bitcoin via their credit cards,
as has paypal not being helpful to bitcoin sellers
not due to 'protecting customers investment risk' but actually to protect visa/mastercard from the costs of fraudsters doing chargeback scams. because it became soo rampant.
visa/mastercard/paypal wont fully admit to this. because that then is advertising a flaw in visa/mastercard/paypal that anyone can use to get their goods and their money back.. literally would cause a bank run of scamming if everyone knew/done it

[sann111]

I've had a runescape account that I sold where the payment was charged back. Since the scammer was speaking to me through skype I was able to resolve the IP address being used and after bugging paypal about it multiple times I finally got ahold of the "fraud department" where a nice American gentlemen spoke to me and I was able to explain the situation.

I explained that I sold a website (i know lol) to someone who is now attempting to charge back. Since I was using a Middle man on the rs trading website, after the scam became apparent I was able to retrieve the IP address used by the scammer to access the site. I was also able to resolve the IP address used by the scammer to talk to me through Skype (which, of course, was also the same VPN the scammer used to access paypal and make the fraudulent payment). I gave both IPs to the fraud department of paypal.

I'm guessing the non-vpn IP matched to the legitimate user's IP address and they were able to determine that he quote unquote "was trying to pull the wool over our eyes" & the dispute was settled in my favor. I remember him saying something along the lines of "it's nice to speak to someone that actually knows what an IP address is" haha.

I got an email from the "legit owner" a few hours later asking me what goods he purchased and that the payment was unauthoried, of course, I didn't respond as directed by Paypal customer support. I think by saying it was a website instead of "digital goods" some how helped me, though I'm not sure how exactly.

That's about the best advice you are going to get, I wish you luck bud.

In the future make sure to use payment types that are less vulnerable to charge backs & refunds.

Thank you for the reply. What do you mean by runescape? My balance is showing as negativ.