Author Topic: The most famous Paypal scam & how to prevent it (Read 573 times)

Who Cares · « **on:** May 17, 2007, 03:09:50 PM »

We all know that Paypal is easiest method when coming to buying or selling mills. However, it also got something deadly, called Charge Back feature, where the person who paid you can reverse the payment.

[color=\"Red\"] How is this done?[/color]

We will go to the base of this scam. There is two kinds of funding methods to Paypal.

1. Fund by Bank/Other Paypal accounts/any other method.
2. Fund by CreditCard

Now If the person funded his/her Paypal with method #1, and then sends you cash AND then Claim & Cancel, then the cash is irreversible; no matter what. So you are safe!

However, if the person funded his Paypal with a CC [Credit Card] then it can be reversed, regardless of him filing a claim and canceling it.

[color=\"Red\"]Scam Explained[/color]

In Paypal, the claim and canceling method is effective. Even in CC payments, Paypal itself won't really let you claim it back once you Claim and Cancel.

However, the person who sent you cash can call the CC company and say he didn't authorize that specific payment & their card is stolen. Then, the Credit Card company will reverse the payment towards Paypal & then Paypal will reverse the payment from you. Another way this is done is sending the cash via a different IP and then filing a report with Paypal saying they didn't authorize that payment & someone else was in control of their Paypal account. Both methods works for scammers; resulting in high charge back rates in Paypal.

This can happen regardless of you have money in your Paypal account or not. So if you did something like, transfered the money to another account, then that will be reversed too. Hence you end up getting scammed/your account will have negative balance.

[color=\"Red\"]How to prevent this?[/color]

There is two ways:

1. Having a Paypal account that won't accept Credit Card payments.
2. Having a disclaimer in your 'selling gp' thread saying that you will NOT accept CC payments.

Method #1

Only Premier/Business accounts can accept Credit Card payments in Paypal. So if you keep your account as a basic one (unverified & without adding a Credit Card/Bank account), you simply cannot accept CC payments and you can clearly say to your buyer, "Sorry bro, I don't accept CC payment" and not do the trade.

Method #2

In your mills thread, clearly say that you won't accept any Credit Card payments via Paypal and if the buyer still sends it, then it would be their responsibility to get it back.

I wrote one disclaimer to copy and paste in your thread:

Quote

I will not accept Credit Card funded payments in Paypal. If your Paypal account is directly funded by yours/your parents credit card then do not bother contacting me. If you do send me money using Credit Card, I am not responsible for it & its up to you to get it back [I will not send it back] However, if your Paypal is funded by a Bank, I will do trade with you. You must know how to claim and cancel.

Say, someone comes up to you & agrees to the above disclaimer. After that, he sends you cash but how would you know his cash is Credit Card funded or not?
[color=\"Red\"]

How to find Credit Card funded Payments?[/color]

Way #1
This method is yet to be confirmed but simple. If someone sends you a Credit Card funded payment then it would have a fee deducted from it! If your buyer had money in his Paypal obtained by Method #1 [above] then Paypal would not charge you that extra commission since sending from Paypal to Paypal is free. However, Credit Card funded payments will be charged a small percentage of fee (about $3 per 50 bucks sent)

How can you check if a fee is deducted on the payment you are receiving? Well, when you receive the payment, click on the detail link (shown below) and you will see the payment in a new window along with other details. If a fee is deducted, then it will show below the payment and Paypal will deduct that commission from your payment and show you the 'net payment' which you will actually receive.

Why? because what you send is, your own money, they can still claim their own money back [means they will get your money + their money] So tell them to claim it back themselves and point to your disclaimer. This is because, according to the rules, its not your fault.

Hope it helps.
From Dingo

creamsoda456 · « **Reply #1 on:** May 17, 2007, 04:29:36 PM »

This should probably be pinned.

Who Cares · « **Reply #2 on:** May 17, 2007, 04:52:52 PM »

Oh yes, It should.

Thanks,
Who Cares

Krogan · « **Reply #3 on:** May 17, 2007, 09:02:33 PM »

it should be pinned

QuantumCube2 · « **Reply #4 on:** May 18, 2007, 09:35:24 PM »

Look at my sig people it took me a long time to learn this. So take his advice and mine don't upgrade your paypal accounts if your account is already upgraded then start a new basic one. AND TRUST NO ONE!

http://images.thetechguide.com/forum/public/style_emoticons/<#EMO_DIR#>/dry.gif\' class=\'bbc_emoticon\' alt=\'<_<\' />

Kmuk123 · « **Reply #5 on:** May 18, 2007, 09:42:05 PM »

[quote name=\'QuantumCube2\' post=\'327383\' date=\'May 18 2007, 08:35 PM\']Look at my sig people it took me a long time to learn this. So take his advice and mine don't upgrade your paypal accounts if your account is already upgraded then start a new basic one. AND TRUST NO ONE!

http://images.thetechguide.com/forum/public/style_emoticons/<#EMO_DIR#>/dry.gif\' class=\'bbc_emoticon\' alt=\'<_<\' />[/quote]

are all ur things legit cause i know devil man and i dont think he would buy mills hes pretty stacked

Gameboycolour · « **Reply #6 on:** May 18, 2007, 09:43:01 PM »

the thread starters name says it all!, lol, phr33 bump

CR0WN M4ST3R · « **Reply #7 on:** May 18, 2007, 10:20:30 PM »

thx for the head's up

wordlif_e · « **Reply #8 on:** May 19, 2007, 04:16:57 AM »

hey guys dont buy off devilman... he scams... i swear on my life.. scammed my rc car..

-L- · « **Reply #9 on:** May 19, 2007, 05:41:31 AM »

Devilman Doesnt scam.

He quit TTG and gave his acc away. And...This SHOULD be pinned

Who Cares · « **Reply #10 on:** May 24, 2007, 10:22:49 AM »

Moe C · « **Reply #11 on:** May 24, 2007, 10:25:08 AM »

[quote name=\'BloodSplatter\' post=\'327446\' date=\'May 19 2007, 05:41 AM\']Devilman Doesnt scam.

He quit TTG and gave his acc away. And...This SHOULD be pinned[/quote]

so who has his acc now

Who Cares · « **Reply #12 on:** May 24, 2007, 10:29:03 AM »

Who knows? He ruined his trust under the alias "Devilman" and himself. So.. just don't trust him.

Thanks,
Who Cares

So, he gave away an untrusted alias.. What's the worst he can do?

foreverhere · « **Reply #13 on:** May 24, 2007, 10:48:17 AM »

Pin this FFS, it would help lots of people.

alex5940 · « **Reply #14 on:** May 24, 2007, 10:49:59 AM »

[quote name=\'QuantumCube2\' post=\'327383\' date=\'May 18 2007, 10:35 PM\']Look at my sig people it took me a long time to learn this. So take his advice and mine don't upgrade your paypal accounts if your account is already upgraded then start a new basic one. AND TRUST NO ONE!

http://images.thetechguide.com/forum/public/style_emoticons/<#EMO_DIR#>/dry.gif\' class=\'bbc_emoticon\' alt=\'<_<\' />[/quote]

your an idiot if you do not upgrade you can only accept a certain amount of money a month and a lot of ppl take more than 500$ in a month i know i did, and to not get scammed trade with good ppl and use mm then you wont have to worry..

Pixeled · « **Reply #15 on:** May 24, 2007, 11:07:02 AM »

Good post, nicely detailed

Who Cares · « **Reply #16 on:** May 24, 2007, 12:24:18 PM »

I try guys

http://images.thetechguide.com/forum/public/style_emoticons/<#EMO_DIR#>/smile.gif\' class=\'bbc_emoticon\' alt=\'

\' />

Thanks,
Who Cares

berima · « **Reply #17 on:** May 24, 2007, 12:39:52 PM »

If you have a Premier account, how do you downgrade it?

Who Cares · « **Reply #18 on:** May 24, 2007, 12:41:27 PM »

You can't downgrade your paypal.

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Author Topic: The most famous Paypal scam & how to prevent it (Read 573 times)