We're one of the companies who accepts Paypal in Mainland China. However, we met trouble yesterday in using Paypal service at our end. Here is the story.

On May27, 2007, a USA company called Best Buys Jewelry paid us 48 EUR for a product/service offered by us. They received our product/service on May 28,2007. Everything seems normal and ok, they neither complained about this transaction nor required something. However, yesterday ( Jun8, 2007), they reversed their payment (48EUR) from our Paypal account without any reason or pretext !!! This is my first time to meet such an incident regarding Paypal service. In this case, what should we do? How shall we resolve and avoid such cases again? How should we report their dishonesty to local authorities ?

50 EUR is really nothing to our company. However, I have to know following questions (answers) for further use of Paypal service in China:
1. Why does Paypal deduct our payment without advising us by email or telephone? How can they reverse the payment even without asking why?

2. Does Paypal only protect Buyer's interests?

3. How can reliable sellers fight against such fraud buyer online? What shall we do?

Any comment would be highly appreciated.

Justin Yuan
Changsha, China.

Replying to [Business in China]:
I'm a french ebay seller and once I bought for about 114USD of video games.
I wasn't satisfied about the products which weren't as described.
I reported that to PayPal and they sent me back 80USD. They didn't send all the money because there wasn't enough money on the vendor's PP account.
PayPal never asked me pictures to prove that the items weren't as described, they neither never asked me to return the games to the seller.
And I read many stories like mine in ebay forums....
So, yes, it seems like PayPal MAINLY protect buyer's interest !
And it seems like there's nothing you can do against those buyers/thiefs. What you can do is to empty your paypal account asap so that PP can't take your money back...

BTW Justin, I wanted to add you in my trade manager to talk about trading help but I couldn't, the system says that I need to upgrade to a premium membership (how can a buyer upgrade to this membership ?)... if you could try to add me please : axlrosefr

Replying to [Business in China]:


Have you ever heard of chargeback? This is probably what the buyer did. I'm not very familiar with that but I think I know how it works.

When the buyer made payment he used his credit card (visa, maestro, amex etc.) and when he received the goods he contacted his bank or visa, maestro one of them to do a chargeback. He must have said that somebody unauthorised person used his card and he wants his money back. Paypal gave the money back to the buyer(actually to his bank) and deducted the money from your account.

I'm not sure what you can do about this.

However, if somebody reading this is familiar with chargebacks then correct me if I'm wrong.

Replying to [rajveer12]: I have had to do a chargeback with Paypal. An item was purchased and paid for and was shipped to me but was defective, I sent the product back the seller received it back and never replaced the unit. Paypal said "too bad so sad you received the product it didnt matter to them that it was defective". I had no choice but to contact my Credit Card company who did reverse the charge to paypal and in return Paypal closed my account. So yes they look out for the buyer interest but I think they also protect the seller also. I would call their 800 number although their investigations seem to take a long time which ties up your paypal account.

I have used Paypal on ebay for many many years and only had 1 incident which I mentioned above. I think there is much more protection then dealing with Suppliers who have stolen my money when I sent via Western Union for Nintendo WII consoles and they take the money and run. I wish there was an honest supplier of Nintendo WII US version out there if there is please contact me here. I am an avid ebay Powerseller just doing ebay part time for extra income to support my family.

Replying to [Business in China]:I use PayPal all the time and have been taken several times. I live in the USA and found that PayPal is not as safe as that claim. I have found different ways to win a dispute. The first with I will only ship the people that have a confirmed address in the USA. I have found when I ship to other countries there is no way to make sure you are shipping the the customers confirmed address. To when buying using paypal you need to be carfule. I purchased from 4 different people that did not send me my product. PayPal gave me my money back for the first 3 but not the fourth. PayPal claims that they only give back claims 3 times every year. Any more claims you will not get back. I am not sure if you have the same services in China but if you only ship the the PayPal confirmed address and make it signature required that shold help you a lot. However I did loose one case recently with PayPal when the customer claimed that the "item was not as discribed." PayPal said in that case they give the money back the customer and I have to sue them. I do not understand this but I do know that PayPal did not protect me at all. They did not even make the customer send the product back. If the customer knows what to say. the customer will win ever time.

Replying to [GNR FAN]:
That happens many times with paypal. when they see transactions strange they block and take money to them selve.
It is mean

Replying to [kpage301]:

In this case,we're considering to quit Paypal service at our end. It's very strange that they deducted our payment without any notice or reasons. Very very strange, just like ' stole' our money. They should tell us why!!!

Replying to [Business in China]: Hi Justin, we work a lot with paypal to receive payments from our global customers! We found that the best and safest way is to ship/provide your products/services not before the status of your received payment is "transfer complete"; to do that you have to log in and accept the payment! As long as it says "transfer pending" your customer can withdraw the money any time!
The safest is if you accept paypal payments via Credit Card then the transfer is automatically completed but this service costs you approx. 5% comission (which we charge to our customers if they wish to use Paypal)! I hope this will help you a little in your future adventures with Paypal! Good luck and good business!
Reinhard Grob

Replying to [Naty]:
No, they didn't take money for themselves, they couldn't send me back more money I said.... and the dispute is still open (since last year, in june)

Replying to [SwissMade]:

Thanks, I'll take your advice next time....

Replying to [marcel11]:

I'm confused with your words here, what you said has nothing to do with Paypal service in China