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  1. #1

    Paypal Reversed Transaction

    I received this unpleasant message a moment ago:

    "Recently, PayPal received a notification from a user regarding unauthorized access to his PayPal account. As a result, one of the payments credited toyour PayPal account has been reversed. The details of this transaction are
    as follows:"

    I checked out the customer's site and it is an escrow service. I have a very strong suspicion it is an ebay fraud (seller asks buyers to use the escrow service, but does'nt send the item and keeps the cash.)

    Is there any chance that this customer is innocent?
    What is your recommended course of action?

    What I'm planning to do is just politely terminate the account for non payment. I'm angry that he tried to defraud me and possibly others, but I'm going to bite the bullet.

  2. #2
    Chances are slim to none. A while back, we had someone signup multiple times trying to host sites like etc to pull scams. Unfortunately it's getting very popular these days. We recently started using FraudGuardian for all of our Credit Card orders through Modern bill, and it has reduced the fraud tremendously. If you donít use modernbill, I highly recommend getting an account with That way when someone signs up, they have to verify it over the phone before you take any action.
    Southern VPS

  3. #3
    Join Date
    Nov 2001
    The South
    I'd say the chances of this being "just an error" and of you actually getting paid and NOT recieving really nasty letters from lawyers soon about hosting this web site are about the same as the chance of winged monkeys flying out of my butt.

    Terminate, politely is your call
    Gary Harris - the artist formerly known as Dixiesys
    resident grumpy redneck

  4. #4
    I have recently had a very unpleasant experience with paypal when they first cancelled the payments of 8 transactions on Feb 26 (status "pending reversed transaction"), and then after I had submitted all required information that these were actual payments from our customers (for travel trips) and that all customers had received these services, paypal decided on May 11 to cancel the transactions and reverse the amount (over USD 5500 in total). No way to get to know why, any kind of customer service contact could not tell. Some of the payments they reversed were from Dec 2 2003, from people I personally know, and who also say they would have no idea why their payment was cancelled.

    I seems all the customers are going to pay again, but this was a huge hassle for us with many frustrating hours spent.


  5. #5
    Join Date
    May 2004
    Birmingham, AL.
    Originally posted by studyrussian
    I seems all the customers are going to pay again, but this was a huge hassle for us with many frustrating hours spent.
    I've seen/heard from a lot of people that have used paypal without incident for a long time, but my personal experiences with them as as "service" provider are really rank. If you sell a product, i.e. a flashlight, or a monitor and can prove you shipped it, and the customer received it, you don't usually have problems.

    But if you provide intangibles, web hosting, html design etc where there is no physical product involved, Paypal will leave you in the dirt.

    Personally I stay away from paypal.

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