I am weighing the possibility of accepting payment for the purchase of my merchandise via my PayPal account. The question is: if there is anyway that my customer can commit fraud against me if I give them my Paypal information to send me the funds for the purchase of my product. The amount of the purchase is in excess of $100K. I understand the use of credit cards as a short-term self financing vehicle. But to use PayPal for this type of transaction just seems a bit odd? Thanks for any insight!

Replying to [drgoodz]:

I have heard of a scam where a buyer claims that the goods were not as described by the seller, then they complain to paypal and get the money back, so the seller loses both the goods and the money.

Replying to [FraudWatchersDotOrg]:

That type of scam can only come into effect if you have the transaction via ebay.

Replying to [drgoodz]:That is not true visit paypalsucks.com and read
if there is a dispute over a sent product paypal instantly takes the money out of your account and it's up to you to prove that it was sent and recieved by the buyer this is why I did not choose to use them
tie-guy

Replying to [drgoodz]:$100k by paypal might be risky. why not use escrow or l/c for such big amount?

Personally I know folks who have used paypal to send/recieve over 15k, and after that, they got their account suspended for 8 months.

I'd only reccommed to use paypal for transaction payment up to 5k.

Replying to [drgoodz]:
DRGOODZ, If you contact PayPal and set your account to only accept E-Check or Payment via PayPal Account there is no way of being scammed. The only thing you do not want to accept is PayPal via credit card. If they use a credit card they can hit you with a charge back the same way anyone using a credit card can. You can set those limitations by calling PayPal. L/C is a best option. Others talk about ESCROW.COM, however I would be hesitant to use this as they have no international legal department. US and European buyers and sellers can use this service.

Ranger

Replying to [Xeron]:
XERON, come off it ladd my wife does 75% her business thru PayPal for her website thats 10-15 thousand a month. Besides that their money market is paying 4.58% per month. This is extremely good as your money is liquid and not tied up in investments or Certificates of deposit.

Ranger

Replying to [drgoodz]:

Why don't they use L/C instead? Thats much safer...
Anyway PayPal is not that safe.. a person I knew had faced a few problems involving customers not paying cuz they complained (lied) to the PayPal company that the goods are not up to standard or never receive the goods...

Replying to [MioBoy]:

Yes, you can get a chargeback if you pay with credit card. But I believe you must disput for a chargeback within 30 day's after you've gotten scammed.

Hello Everybody, now i start to know that people can refund paypal payment just by a note when he/she paid, say somebody will pay you 100us, then he/she send you a paypal payment, and it looks like normal, but he/she already put a note to the payment that he/she may ask money back someday. And then you make despatch the order right after paypal payment. Problem comes then, paypal could send you a ltter to refund the 100usd even 2 month later, now you lost control and even the delivery bill was cut because of long time idle.

Please do be very careful now, paypal payment is not good.