So about a week ago I was sent $300, for selling a website to some guy. Everything was fine and dandy, today I get a message from pay pal saying the guy opened a dispute saying that it was a illegal transaction because someone had gained access to his account. Well that a bunch of bs, because I personally spoke with the gentlemen when he sent me the money. I have not responded to the dispute as of yet, but Im probably screwed since there was no agreement made, it was done online, and I never thought of creating a agreement. The money was sent to my bank, and I withdrew it, but I do not want my paypal staying at -200, it limits me from doing everything via paypal. Now if I lose the dispute, what are my options, what I am scared of is them possibly hurting my credit rating if it goes to a collection agency, as I am only 19 years old. I was going to close my bank account anyway and credit card, because chase is a bunch of scammers also. Except I don't want paypal threatening me to pay back that money, which I do not owe. I was reading on another post that some guy said the only way it could hurt your credit rating is if you had your social security number on file with paypal, thankfully I did not, but is this true? Any help would be appreciated...I hate paypal.

There are two things to consider:

1. You cannot change any account information, Banking, Credit Cards, etc., while you have a negative balance.

2. PayPal will automatically take money from you after a certain period of time; I've heard 43 days.

Your options are:

1. Pay the negative balance.

2. Report any Credit or Debit Card you ever gave PayPal as LOST. Close any Checking Account you ever gave PayPal immediately. Prevent PayPal from recovering money from you. PayPal will take money from you and then decide the Dispute in favor of the buyer. Resign yourself that you will never again use PayPal. Tell any Collection Agency that you have never owed this money and that if they continue to attempt to collect a debt you are not liable for, you will sue them (this action makes them stop as they must prove you owe, which they can't do as they bought the debt for pennies on the dollar).

Here's the rub: PayPal will decide this Dispute in favor of the buyer because you cannot provide a Tracking Number. Yes, I know, a virtual sale does not include a Tracking Number but this still the logic PayPal will use.

Thats one of my problems, there is no proof except text messages, and Skype chats, which I doubt pp takes into account. The only ammo I have is since he said his account was compromised and those funds sent without his knowledge, I can say that if the account was compromised and those funds sent without his knowledge, then why do I have his name,address,phone number, with texts from him. They cross check this info I give them with the other guys paypal, and see that yes indeed he knew me, and that the money was not sent randomly.

Actually...PayPal does not consider anything you provide other than a Tracking Number as proof. No Tracking Number = No Proof of Delivery = You Lose.

This is PayPal's standard operating procedure. It keeps them out of the loop for almost all liability. Please see my previous post for your only options.

Chickennugget I feel for you. We have all been there or it is just a matter of time for those of you not yet screwed by paypal. Isgotoxs is right when it comes to what options you have. Cancel every banking information/card/account you have ever had associated with paypal and then be done with them. They are not going to come after you no matter what they threaten with. Obviously you will not be able to use paypal ever again, and why would you? Still you are going to be have to collect credit card payments for your products sold. I got so fed up with paypal constantly limiting my account for no reason what so ever that I couldnt take it any more. I have for the last few months been using a merchant account I got through merchantinc.com this website also has a number of reviewed alternatives that you might want to look into. I have been very happy with my merchant account. money goed directly into my checking account and it only costs me $7.95/month. Not having to deal with paypal. Priceless.

My experience with the company you mention was not a good one. I was charged a $25 fee to verify my address. I was also charged a $35 fee because I didn't take some dumb survey that I didn't know I was suppose to take. I finally had to close the account and when I did, I was charged $350. I ended up closing that account and went with another company. I'm just saying I had an experience that wasn't as gratifying as your seem to be.

I am not sure what fees you were charged because I have had to pay none of that. I have been with them for a while now and my sales slowed down considerably so I was thinking about canceling my account and them up to see what I would have to do. They e-mailed me a closure form that I would have to sign and fax or e-mail back to them. There is no closure fee because there is no contract you can cancel the account at anytime I was informed. Did you ever call them about the charge? I am sure you would get your money back if it had been charged in error. I ended up not closing my account, hoping my sales would increase. If the survey you are referring to is the PCI compliance that is something that everyone with a real merchant account is required to do (not with paypal because they get away with scaming and no need to follow federal banking regulations hence all the problems people have with them). I am sorry you had a bad experience because I have nothing but praise for merchantinc.com and you really should give them a call. They have always been really helpful to me when I have called (unlike some other company we know)

I also used the link here and opened an account. Seems I ended up with several different companies involved in the processing of Credit Card transactions, each ending up getting a piece of the pie. One of them was iPayment, another was National Merchant Bancard. I was looking for and was under the impression I had signed up with a 'one-stop processing' company but that wasn't the case. I too, FAX'ed in the account closure form and several days later, a $350 withdrawal appeared in my checking account. I went to my bank and told them that this withdrawal was NOT authorized or approved and my funds were returned. The bank indicated the withdrawal was an 'Account Closure Fee'. To be completely safe, I closed that checking account and opened another. Of course, the $25 'Business Address Verification' fee and the $35 'Failure to Complete Survey' fee were totally uncalled for and also never agreed to. I'm not saying that this going to happen to everyone but it did happen to me.

I've been the victim of a ChargeBack Scam and even when I provided proof that it was a Scam, and giving the Tracking Number, PayPal sided by the Scammer.

it seems to me they will always find a good excuse to not honor the seller protection program, so they won't have to pay.