HOW TO AVOID GETTING SCAMMED ON PAYPAL!

So I'm new here and have seen a lot of fellow mpgh sellers complaining about them getting scammed by customers doing chargebacks on paypal payments. I have been a paypal customer for over 3 years. I was also a victim of this scam. But after a lot of experience, i have come up with alot of ways to AVOID BEING SCAMED!

SCAM: Always tell your customer to send money to your paypal via friends and family. But there's a twist,
Money sent from PayPal Balance to your paypal via friends and family will 100% not get chargeback or reversed. However, it's not the same with money from Bank or Credit Card to your paypal via friends and family. Those funds can be chargeback or reversed if the Bank or Credit Card issues it. What happens is the paypal owner calls the bank or credit card company and tell them an unauthorized payment was made. What they do is reverse the payment that was went from your paypal. For example,
PAYMENT:
Bank/CC>Scammer's PayPal>Your PayPal
Since the Scammer's PayPal acts as a bridge between his Bank/CC and your paypal, the funds on your paypal will be reversed,
REVERSAL:
Your PayPal>Scammer's PayPal>Bank/CC

SOLUTION:

1)Always accept payment via friends and family from the buyer's PayPal Balance. Those cannot be chargeback or reversed.

2)Use a middleman account.
Yes. I have done this alot of time and has saved me 1000's of dollars.
A middleman account is a semi-fake/stealth paypal account that you create and use to get money on it. And then send those money from that account to your main account.
For example,
Buyer's PayPal>Middleman PayPal>Your PayPal
What this will do it, keep the money on your paypal safe.
Even if the buyer chargebacks or reverses the payment, only the middleman paypal will get hit with it. If the buyer wins, your middleman paypal will go negative and your main paypal will remain safe.
So in summary,
Buyer's PayPal funds (via friends and family) > Middleman PayPal (via friends and family) > Your Main/Personal PayPal

I hope I helped some sellers here. Leave a thanks if you think I helped. Cheers!

Thanks but how can i know the buyer is paying from his paypal balance and not his credit card?

At the end of the day, finding people who will only pay from their PayPal balance and not from a debit/credit card will just limit business. It's a good idea which has honestly been thought of a million times but it simply is not realistic.

Originally Posted by ByClops

Always accept payment via friends and family from the buyer's PayPal Balance. Those cannot be chargeback or reversed.

Wanna test that? I'm sure you can

Originally Posted by Danny

Wanna test that? I'm sure you can

You can't. I called paypal just to confirm and they clearly said they can't do anything about it. Have you been chargebacked?

Originally Posted by Danny

Wanna test that? I'm sure you can

I've done my research on refunding paypal prior to setting up my PP>BTC shop and that's what I use for big trades.

Originally Posted by Danny

Wanna test that? I'm sure you can

You can chargeback if you paid via Credit Card as OP mentioned correctly.

Think i misworded what i meant,

I meant how can you test that it is DEFINITELY friends/family.

I know that goods & services gives you a fee which is easy to notice, can't think of anything other than contacting paypal via an email to say it was card or paypal balance or w/ever

So I think I've left a few questions unanswered. I've have been doing more research and have come up with the answers.

Q1)How to know if payment was sent via friends and family or goods and services?
Ans)You can confirm if payment was made via friends and family or goods and services by looking at the fee. If there is fee, than goods and services. If no fee, then friends and family.

Q2)How to find out if payment (sent from friends and family) is from paypal balance or bank/cc?
Ans)On your side (the funds receiver), you wont be able to tell that, however, its not the same on the sender's side. The senders side transaction will clearly tell at the bottom the "Funding Source". That has to be PayPal Balance.
Now, what you can do is once the sender says he sent the payment via friends and family from PayPal Balance, you just tell him you go on skype and share his screen with you. Tell him to refresh the paypal transaction history page to confirm its not fake or edited.

HOW TO AVOID GETTING SCAMMED ON PAYPAL!

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