I have had a few clients come to me recently absolutely gutted as they had been scammed by buyers on paypal. I thought it was best to write a quick blog post on it to try and help people avoid the same scam happening to them.

Now whether you sell on your own website or simply sell through ebay, if you accept paypal payments you may or may not have heard of the “seller protection address”. This is an extremely important piece of information for all sellers.

The paypal seller protection address is the address that the SELLER MUST SEND TO in order to be covered by their protection scheme. That is to say, if you send your order to the protected address with a tracking number, even in the case of a “non received” dispute being opened,  papal will rule in the sellers favour. This is great but has opened the door for a nasty little scam that is starting to take off!

The Paypal Seller Protection Scam

Certain individuals and scam organisations are starting to exploit peoples good nature and utilise the seller protection address scam to receive goods without paying.

The scam starts with a typical order, however before the items are being sent out, the buyer is contacting the seller to lie and say they made a mistake with their delivery address (or other stories which state that they need the order delivered to another address). Quite often buyers intentionally fill in a slightly incorrect delivery address which they then ask to be amended before the items are sent out.

The issue here lies in that paypal will only cover goods under their protection scheme which were sent to the initial address. WHAT CUSTOMERS SHOULD DO HERE IS CANCEL THE ORDER AND REQUEST THE BUYER TO RE ORDER WITH THE CORRECT ADDRESS. However due to sellers worrying about their reputation and trying to provide the best service, a-lot of sellers have been sending to the requested “non seller protected”. Once the order has arrived the buyer will open a paypal case saying the never received the item.
Even when the seller updates tracking, paypal will turn around and say that it does not link to the seller protected address and will refund in the favour of the buyer.

Be Warned – Paypal will not accept the email string of the buyer asking for a different address as evidence if you try and dispute paypals decision!

I hope the above information about this new paypal scam is helpful.

Please share on social media to help others and also comment below if you have any extra information on this.

By | 2018-03-05T13:33:00+00:00 March 5th, 2018|Latest Articles|