Paypal Fraud?

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UW Mitch

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I'm about to set up a paypal account, but I hada thought...what protection do paypal users have against fraud?

Up until now, I've used Postal Money Orders. In sending these, you have the address and name of the person you are dealing with...if they try to rip you off, the postal inspector can look into it. It's sort of a form of protection.

With paypal, I'm "beaming" my money to someone I don't have a physical address on...only an email address. What if I "beam" him the money, and don't get my stuff I bought? Who's out there protecting paypal users?

Hopefully we can get some discussion going soon.
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Thanks,
Mitch
 
I feel that to a certain extent people have forgotten how to control there own destinies or were never taught to.

It is nice to have elaborate systems "officially" in place to protect us. But One also needs to know how to protect themselves.In all areas of life.

When making a deal with a maker(such as myself) or a dealer or an individual trade or sale, make sure to print or save all your email correspondence until the deal is fully completed. Also, even though you are dealing through PayPal, get each others addresses and phone numbers. Maybe even verify by calling the individual for a friendly chat. Then you will have all the info necessary to take action if something is amiss. Also I believe that even though Paypal will not be responsible for a fraudulent transaction, they won't take very many complaints before they terminate the offending user.

Anyone doing honest transactions shouldn't mind giving this info to the prospective buyer. And vice-versa in a non payPal deal.

Its a nice fantasy to think that we can just trade blindly and expect the best. But if you do then sooner or later someone will take you to the cleaners.

Fortunately for me that has not yet been my experience since I discovered BFC. And I think PayPal is a Godsend for the small business man. So far I have only had the best of experiences with fellow forumites.

I hope somewhere in that ramble I addressed your question

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Gary Bradburn
Bradburn Custom Cutlery
www.toptexknives.com/bradburn.htm

"You can only protect your liberties in this world by protecting the other mans freedom. You can only be free if I am"
 
Perhaps my question was misinterpreted.

I do in no way advocate blindly trading over the internet. Most of us have never, and will never meet. If a person is willing to trade honestly, one can usually tell. If red flags go up, it's probably best not to trade/buy/sell (regardless of if the Postal Inspector might be able to do something about it.)

My question was about peace of mind. You answered my question in that even if you do a paypal transaction an upfront person should not mind giving out his address and phone number to a buyer or seller.

Yes, blindly trading will get you taken to the cleaner. However, IF you are careful, and still got burned on a paypal transaction, it seems as though there is nothing you can do about it, short of an expensive lawsuit...paypal basically states that buyer and sellers work out their own problems. Perhaps this is the disadvantage of a "free" service.

I think I'll just stick to using POMO's for now.

~Mitch
 
As I understand it, Paypal requires a physical address, and sends a confirmation letter to that address with an additional password, etc...BUT Paypal will work, even without the mail-sent password, but your maximum account allowance is less...I guess it's the old caveat emptor...

--dan
 
There is no real assurance that someone won't be able to get access to the information you give to paypal. There are many ways for that to happen. Your only real guarantee lies in your rights as against the credit card company you deal with, provided you keep careful track of your transactions and have protective provisions in your contract and remedial legislation in your jurisdiction. I signed on with paypal with considerable trepidation. I'm still not sure it was a good idea, but I'm watching it carefully.
 
HJK, I have great trepidation in any internet transaction that incurrs my sending a credit card number. So the better safe than sorry rule applies heavy with me.

Plus, as long as I don't have PayPal I May not be as impulse prone in my spending? So money orders will be my mainstay for now.

G2
Cautious in PA
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"The Road to Hell is Paved with Good Intentions!"
Take the time to read your Bible Now, don't be left behind...

G2 LeatherWorks
 
I have used Paypal for quite awhile now and have been quite impressed with its simplicity and ease of use. As someone pointed out it is a blessing for the small business person. I have shopped online for several years now. Because of our busy schedules my wife and I do a substantial amount of business via the web. I am in the computer business and can tell you that most e-commerce sites take all reasonable precautions to protect your personal and credit card information. There have been very few incidents where credit card information has been stolen from web sites. The bottom line: anything can be hacked.

Every time you use your credit card you are at risk. Any clerk or waitress who processes your card can steal your number and use it against your account. IMHO you are at far greater risk everytime you use your card in the local mall than you are on the Internet, assuming you use a few common sense rules. Read the security policies for each site you use. Make sure you are comfortable with their security precautions. Use a browser with 128-bit security. And above all else, keep a record of each transaction you make and review those transactions against your monthly statement. If there are any discrepancies report them immediately, in writing to the issuing company. Most credit card companies will only negotiate fraudulent or mistaken charges, in writing. The good news: credit card companies are generally very good about issuing credits against disputed charges when you have reasonable proof of fraud or error.

Regarding trades on these boards, I never enter into a transaction with anyone who will not give me their complete name, address and phone number. Once you have those items you can verify their location through several different sites on the Internet, or you can just call them. For those that are truly paranoid use USPS money orders only. If you do not receive your merchandise it constitutes mail fraud. Due to the federal nature of the post office and budgeting and staffing issues, fraud happens to be something that is agressively pursued by the postal service. For large transactions (> $300) I generally use USPS MO's just for the added sense of security.

Fox
 
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