Paypal is unauthrized to remove funds.

[Dspritzman]

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

I have sold two intangible items through Paypal and on each transaction the account owners have claimed an "Unauthorized Transaction". I have been told that the buyers protection does not apply to this transaction due to it "not being made by the owner". I gained this information directly from a Paypal representative. However, the seller's protection statements and the Unauthorized Transaction sections of Papyal's User Agreement found on their site are still in effect. I want to point out chapter 12.4 of the User Agreement. It states the Liability for Unauthorized Transactions.

It states, "If you report and we verify that there has been an Improper Account Access related to your Account, we will reimburse you in full for all unauthorized transactions sent from your Account that occur within 60 Days of the time that you knew or should have known about the Improper Account Access...".

This says that WE, as in Paypal, will reimburse the account owner. It does not however state that they will in anyway take the money from the seller. I do understand that because this is an intangible item it is not covered by the Seller's Protection as stated throughout Chapter 11, but it does not in anyway authorize them to remve the funds from my account. It simply states I am not protected against them having an unauthorized transaction on their account, and Chapter 12.4 states that THEY, Paypal, will reimburse them. So my question is, isn't it illegal for them to take the funds from my account and use them to reimburse the account owner? The way I see it is that they only have permission to reimburse the account owner and not give me "protection" for what seems to be absolutely no threat as they are not giving themselves permission to remove funds for this purpose.

Also, shouldn't I be able to keep the fund even though it wasn't an authorized transaction because either Paypal or the owner should be liable for the vulnerability of the account, and I had no part in it?

Paypal's User Agreement can be found here: https://www.paypal.com/us/cgi-bin/webscr?cmd=xpt/UserAgreement/ua/USUA-outside#spp-policyWhat is the name of your state (only U.S. law)?

 

[Zigner]

I would like to point out:

11.3 What happens when a buyer files a Claim, Chargeback, or Reversal?

PayPal will place a temporary hold on the funds in your account to cover the full amount of the Claim, Chargeback, or Reversal. If PayPal determines that the payment is covered by seller protection, we will release the hold and restore your access to the funds.

If the payment is not eligible for seller protection, PayPal will remove the funds from your account and return the payment to the buyer. In addition, you will be responsible for PayPal’s Chargeback Fee, if applicable.

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

I have sold two intangible items through Paypal and on each transaction the account owners have claimed an "Unauthorized Transaction". I have been told that the buyers protection does not apply to this transaction due to it "not being made by the owner". I gained this information directly from a Paypal representative. However, the seller's protection statements and the Unauthorized Transaction sections of Papyal's User Agreement found on their site are still in effect. I want to point out chapter 12.4 of the User Agreement. It states the Liability for Unauthorized Transactions.

It states, "If you report and we verify that there has been an Improper Account Access related to your Account, we will reimburse you in full for all unauthorized transactions sent from your Account that occur within 60 Days of the time that you knew or should have known about the Improper Account Access...".

This says that WE, as in Paypal, will reimburse the account owner. It does not however state that they will in anyway take the money from the seller. I do understand that because this is an intangible item it is not covered by the Seller's Protection as stated throughout Chapter 11, but it does not in anyway authorize them to remve the funds from my account. It simply states I am not protected against them having an unauthorized transaction on their account, and Chapter 12.4 states that THEY, Paypal, will reimburse them. So my question is, isn't it illegal for them to take the funds from my account and use them to reimburse the account owner? The way I see it is that they only have permission to reimburse the account owner and not give me "protection" for what seems to be absolutely no threat as they are not giving themselves permission to remove funds for this purpose.

Also, shouldn't I be able to keep the fund even though it wasn't an authorized transaction because either Paypal or the owner should be liable for the vulnerability of the account, and I had no part in it?

Paypal's User Agreement can be found here: https://www.paypal.com/us/cgi-bin/webscr?cmd=xpt/UserAgreement/ua/USUA-outside#spp-policyWhat is the name of your state (only U.S. law)?

 

[Dspritzman]

hmm...

Well technically Chapter 12 doesn't state it as a claim anywhere in it, do you think if I argued this point repeatedly and escalated through their supervisors, one will eventually give in and refund at least some of the money? I know this was a scam because the two items where both highly repped for sellers and buyers being scammed for it. I also am almost positive the person just used a anonymous proxy to fool Papyal as it is easily done.

 

[Zigner]

Well technically Chapter 12 doesn't state it as a claim anywhere in it, do you think if I argued this point repeatedly and escalated through their supervisors, one will eventually give in and refund at least some of the money? I know this was a scam because the two items where both highly repped for sellers and buyers being scammed for it. I also am almost positive the person just used a anonymous proxy to fool Papyal as it is easily done.

No, I think you're SOL

 

[Dougthegreat]

No, I think you're SOL

Yep. There are tons of people on PayPalSucks.com in your same situation...