Simple question really, if you buy an item using paypal, and you used your credit card to deposit money into your account, and you do a chargeback, what happens? Will the money be taken from the person you paid, will you account be closed or put into negative dollars?

I'm looking into buying a quite expensive item from a trusted person i know, i've heard bad news about this trusted person from another trusted person i know. Although i trust this person, i'm am worried what will happen if this item is not delivered.

I'm am pretty sure that it will be delivered as i have done business with this person before (But not quite a big as what i'm looking at)

And even though i trust the source, there are always two sides of the story. I do not want to get the other side involved because it is really none of my business and i would not like to "insult" other party.

If he can show proof of shipping, you would have a hard time charging back, if not, they charge back - give you your money - put his account in the negative.

All this will take about 7-10 days for their 'investigation'.

Well, i've heard uncertain things from paypal users, where they (paypal) might not be willing to help, i might go straight to the credit card company instead.

If i do a charge back from the credit card company, and paypal does not agree, will my account be closed or limited?

Should i just avoid paypal all together and use a different source?

If you win the chargeback from the credit card company on PayPal, they will just be forced to charge back to the seller... i've heard of a few people doing this with actually no recourse from PayPal on them.

Personally, I'm not a huge fan of PayPal so I jump at the opportunity to use another form of payment.

I gave up on PayPal because of these uncertainties.
I've had a few problems with them in the past that I was not too happy about and I don't use them anymore unless there is no other choice.

PayPal seems to take their sweet time in taking action against these things and by then sometimes it's too late. Use your CC Issuer if you run into problems then PayPal will have no choice but to honor it and it will probably get done much faster. Then it's up to PayPal to recover the losses from the other party.

this is what you do:

pay through your credit card, through paypal

if you dont get your item, instead of going to paypal, do a straight charge back on your credit card account

this way, paypal will lose that cash, and then they will just get it from the other guy

If you do need to get paypal to investigate the problem make sure you fill their form in correctly the first time.

I can't remember exactly what it was but I selected the wrong option from a drop down menu, which somehow meant I couldn't claim the money back.

I emailed them to tell them I had made a mistake and it would be easy enough for them to find out it was from an ebay auction, they refused to help, saying they couldn't re-investigate it after it was closed.

So I haven't used paypal again.