Well I have been dealing with PAYPAL for about 3 years now and I must say after this morning's incident, I am definitely going to rethink my association with them. I am out of at least $1200 - $2050 if not more.

Resold a client 3 servers, after finding out that he was nothing more than a SPAMMER that hosted ONLY SPAMMERS, he was removed from the servers (3) and all recurring billing was STOPPED.

This con-artist contacts PAYPAL and files fraud complaint saying that he never received the services. Duh, he certainly did and I received many complaints from BW providers about various complaints from SPAMCOP and SPEWS threats. He was contacted 3 times and forced to remove domains (3 different) and then finally came what he was really doing. Buying from me really cheap and selling really high to SPAMMERS.

blah, blah, blah - spoke with customer service and was shocked to find out that if the customer just files the complaint with PAYPAL, then you have the opportunity to provide proof and let PAYPAL make the judgement, HOWEVER - IF THE CLIENT GOES TO THE CC COMPANY AND GETS A CHARGEBACK - PAYPAL will not do anything to help you. The rep explained that if it is not a TANGIBLE item then the bottom line in all of this is that YOU ARE NOT PROTECTED BY the SELLER RIGHTS!

I have been burned before for small amounts through PAYPAL and have always stood by them as a great inexpensive solution. NOT ANY MORE!!!

This is very shocking to me. I know that it shouldn't be after hearing so many stories regarding others bad run ins with them, but, DAMN IT!!!

Beware...

And after all of this, I still have to just :) .

Bad news.

What do you mean resold? So he owns 3 servers? Or did you get 3 servers for him via your ''mother host''?

When I say resold I mean that I was leasing the servers and then allowed him access to the servers upon payment.

This guy SPAMMED and SPAMMED. He or "his clients" as he claimed were sending MASS MARKETING EMAILS from "other sources" and the servers themselves, BUT pointing it to domains on the servers which caused relentless COMPLAINTS from SPAMCOP, etc.

:bawling:

I know EXACTLY how you feel! :( :( :(

On BOTH! :angry:

Oops NocSol is back. This thread will catapult to the top of the list and stay there like forever :D

Back from leaving ? :)

What does that have to do with PayPal?

If someone files a chargeback with the CC company, says that no services were given to him - How can you prove that you did give it to him? Because you have a program that wrote an invoice for you? Or you manually wrote an invoice?

There were no handshakes, no signatures, no contracts signed - no proof. Sure, you have some servers that were almost listed with anti-spam lists, but you have no proof it was HIM that caused it.

That's the risk of doing business and accepting credit cards online. The only products you can prove are products that are actual items or goods. Not services.

However, I am sorry for your misfortune.

That's actually the best story I've ever heard. Usually PayPal's staff produce a "bank error in client's favour" result. As a matter of fact it usually happens regardless of information you've presented.
Originally posted by ZiCmaN
HOWEVER - IF THE CLIENT GOES TO THE CC COMPANY AND GETS A CHARGEBACK - PAYPAL will not do anything to help you. The rep explained that if it is not a TANGIBLE item then the bottom line in all of this is that YOU ARE NOT PROTECTED BY the SELLER RIGHTS![/B]
This guy may only have a credit card registered with them (no bank account). With the poor state of online transactions it doesn't matter who you use - merchant account or third party - anyone can hit you with a chargeback at any time and you'll lose guaranteed. PayPal's just protecting it's ass(ets) by charging the producer and holding the same TOS in front of you they get from the bank.

Sincerely,

-Matt

A customer like that would still do a chargeback anyway even if you had your own merchant account

It's just one of those things... :(