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Paypal to Decide Which Transactions are Risky or Fraudulent Before the Transaction is Even Completed

By traderasuger

San Jose, California — Buyer and seller beware. Paypal is in the process of implementing a new program whereby it will determine which transactions are risky or fraudulent — before the transaction is even completed. Those transactions that are deemed suspicious or suspected fraudulent will not be completed. Instead, Paypal will inform both parties who will then have to provide additional information before the transaction could continue.

PayPal is launching “Payment Review” later this summer in order to “reduce fraudulent transactions.” PayPal intends to identify those transactions it believes may pose a risk. PayPal will keep those transactions pending while an investigation is conducted. Those who are familiar with PayPal’s current investigative times and languid customer service should shudder at the prospect.

Once PayPal eventually completes the transaction, PayPal claims sellers will be 100% protected on those transactions. All other transactions not recommended by PayPal will be covered under the current seller protection policy. PayPal claims that the new procedure will have a positive effect in reducing chargeback issues for sellers (and for PayPal).

Mr. Jeffrey Clementz, Director of Product Marketing at PayPal, said it will be optional for sellers to go ahead and fulfill pending transactions. Those transactions, however, would not be covered under the Payment Review protection guidelines.

It is not clear how PayPal will offer 100% seller protection under the new program. If PayPal deems a transaction to be risky or fraudulent, investigates and then finds the transaction valid, the seller would be covered according to PayPal. However, a popular Paypal scam is for buyers to use credit cards to purchase something, receive the item, and then file a complaint with PayPal for non delivery or a product not-as-described. In the end, the buyer ends up with his or her money back and the item. How will PayPal protect the seller in this instance as well as other instances?

Detta inlägg postades den augusti 9, 2007 kl 5:08 e m under Paypal. Du kan följa alla svar på detta inlägg via RSS 2.0-flödet. Du kan lämna ett svar eller trackback från din egen webbplats.

Ett svar till “Paypal to Decide Which Transactions are Risky or Fraudulent Before the Transaction is Even Completed”

  1. Paypal Fight Back blog säger:
    december 10, 2009 kl 9:09 e m

    Have you had a bad experience with paypal ?

    or

    Do you have a paypal horror story?

    Then we would like to know.

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