Internet theft from business

[pcwindows]

What is the name of your state (only U.S. law)? Pennsylvania

Hi, I am hoping to get some advice on an incident involving my business.

I own a small computer sales business in Pennsylvania. I had a customer from West Virginia purchase a Dell laptop from me in the amount of $1195.00 on Ebay.com. The customer paid with a credit card using Paypal.com.

I shipped to the address listed in the customers Paypal payment and shipped with UPS tracking and signature confirmation. The laptop was delivered and signed for by the customer.

I received an email from the account holder today informing me that he did not authorize the purchase and that it was made by his disgruntled ex-girlfriend. He had also reported this to Paypal and since the payment was not authorized they have removed the amount of $1195.00 from my account, so at this time I have neither the laptop or the payment. The customer confirmed that he will help in any way to help resolve this matter and give any pertinent information related to this matter.

He gave me the email and phone number of his ex girlfriend, but she has not responded.

My question is what steps I should now to take to retrieve my merchandise. This is the first time I have had a problem such as this and just want to make sure that I do everything by the book so that I can get my merchandise back.

I am grateful for any advice you can give.

 

[pcwindows]

One thing I forgot to ask, in a situation such as this would I need to go after the original account holder or his ex girlfriend?

 

[Mass_Shyster]

Call the police in the city/town where you shipped the laptop and report the fraud.

You should also contact Paypal to determine how you can prevent this from happening in the future. You may want to discontinue doing business with Paypal if they will permit this to occur.

Legally, you may have a cause of action against Paypal since you relied on them to insure the proper person ordered the machine, but it would probably cost you more than $1195 to have an attorney research it.

 

[HomeGuru]

How ca neither ebay or Paypal be at fault if the ex gf used the guy's account and had his passwords etc.?

 

[Mass_Shyster]

The credit card company (Mastercard, VISA, AMEX, Discover) agreed to indemnify the cardholder in the event of unauthorized use.

Processing company agreed to indemnify credit card company in the event of unauthorized use.

Merchant (Here, Paypal) agreed to indemnify processing company in the event of unauthorized use.

Seller agreed to indemnify paypal in the event of unauthorized use. (Probably - but I don't know that for a fact).

Here, it is arguable that ex GF is an apparent agent of the cardholder, since she had passwords, etc. It can be argued that since seller shipped laptop to the cardholder that ex GF stole the laptop from cardholder. It was shipped to his home and addressed to him. She stole his laptop.

Seller is not in privity of contract with credit card company, nor processor. Seller is only in privity of contract with Paypal. If refund was wrongfully given, and wrongfully taken from seller, seller has recourse against the only person with whom he is in privity of contract (Paypal).

Was this unauthorized use? Did ex GF steal from seller or did she steal from cardholder? If she stole from cardholder then Paypal wrongfully removed funds from seller's account.