PayPal Friends and Family - Open Case?

[Asian62150]

Just had PayPal send me an email saying a case was open for a Friends and Family payment I received back in April.

The reasoning is "unauthorized transaction" on behalf of the the buyer.

I reached out to the buyer and she said sometimes her credit card does that if the amount is high and she told me she would tell PayPal the charge is legit.

Has anyone else had this happen with a Friends and Family payment?

[boxbuster7]

I've never heard of that - seems a bit odd...especially considering how long ago it was.

[jcardstore]

She’s lying

[jlzinck]

Anything funded by a credit card can be fought. If buyer doesn't tell them it was OK you will lose.

[JeffG1954]

I believe there is also a chance that PayPal could freeze your account.....if you have a balance holding I would remove it.

[sethc1020]

Also might be opening a can of worms with Paypal if you have been using FF for purchases. I would definitely remove any funds you have there immediately.

[Blake050]

I didn't think you could send a friends and family payment that was funded via credit card.

[jzx1103]

I didn't think you could send a friends and family payment that was funded via credit card.

You can, just that there's a fee for the sender/buyer

[tylermckinzie]

My buddy and I had this happen a few months after a show. We normally avoid online payments and only take cash but this was to complete a fairly large deal and we were convinced since it was friends and family (which he never takes) we would be ok.

A few months later we got an unauthorized transaction on the $2500.

That money was gone and we never saw the buyer again.

[mc1]

My buddy and I had this happen a few months after a show. We normally avoid online payments and only take cash but this was to complete a fairly large deal and we were convinced since it was friends and family (which he never takes) we would be ok.

A few months later we got an unauthorized transaction on the $2500.

That money was gone and we never saw the buyer again.

https://i.imgur.com/pnzJTq3.gif

[Ericc5Bears]

https://i.imgur.com/pnzJTq3.gif

I mean I don't really blame them, a lot of people think friends and family is totally safe since there's no way to open a dispute through paypal. The reality is, any payment sent with a credit card can be charged back. Only 100% non-chargeback-able payment options are cash and zelle.

And just to add on to the main topic the thread, the buyer is absolutely lying OP. What's she's describing doesn't actually happen, especially not 3 months after the payment had been sent. It's possible she may have accidentally disputed it (saw it on her credit statement and didn't remember the deal), so hopefully that's the case and she closes it.

[Jed Clampett]

https://www.paycec.com/faq/does-paypal-refund-money-if-scammed-friends-and-family#:~:text=PayPal%20no%20longer%20provides%20refunds,request%20reimbursement%20from%20the%20seller.

[HeyRelaxGuy]

This is why I never leave funds in my PP account.

[JeffG1954]

This is why I never leave funds in my PP account.

Also why I never pay or ask for payment using F&F.

[mc1]

This is why I never leave funds in my PP account.

If someone does a chargeback and you have no funds then your account goes into negative. I guess Its fine if you never plan to use paypal again.

[Ericc5Bears]

This is why I never leave funds in my PP account.

Yup, paypal is one of the most evil and greedy companies on the planet. If they catch you doing friends and family business transactions they will freeze your balance, make you wait months as they "review" your account, then in the end they will determine that you broke their TOS and as compensation for that they will be keeping your entire balance. Happened to a buddy of mine, believe he ended up losing close to 5 grand.

[daveyc1]

can PP draw funds out of your bank account to cover a negative balance in the event a buyer charges back a payment? I always transfer all PP funds to my bank as soon as they clear and become available.

[GOATcards]

https://twitter.com/charlesmurray/status/1679424971586646018
Charles Murray
@charlesmurray
Update:
@PayPal
sent me several hundred words of legal gobbledygook explaining why it's completely reasonable for them to collect a $1,495 fee on a transfer of $50k from father to daughter that never went through. They're still holding onto my remaining $48,505 (collecting interest) while they finish checking that the same guy who originally sent the money should be the one to get it back. Uneffingbelievable.

[ninjacookies]

You're getting finessed, opie.


Even if you take the money out of your PP now, they will pursue you through clections later down the road if it's for at least 3 digits.

Ask me how I know.

[Asian62150]

Appreciate the responses.

Fortunately, I took the funds out of my PP before this dispute so now I just have a negative balance.

Buyer says she talked to her CC and told them item was received and case is resolved (she sent me screen shots verifying her conversation with CC company for whatever that's worth). But PayPal acct still shows a neg balance.

[shrevecity]

Appreciate the responses.

Fortunately, I took the funds out of my PP before this dispute so now I just have a negative balance.

Buyer says she talked to her CC and told them item was received and case is resolved (she sent me screen shots verifying her conversation with CC company for whatever that's worth). But PayPal acct still shows a neg balance.

They can fine you for this stuff that why may people who get their accounts frozen never see a dime. You now have a target on your back with PayPal. On flip side so does the buyer

[mjohnatgt]

Sometimes when this happens, it's because the person's credit card was stolen, and the card company automatically attempts to rescind all online purchases. It's good to see you got the buyer to agree that they received the item and intended the purchase.

[jlzinck]

https://twitter.com/charlesmurray/status/1679424971586646018
Charles Murray
@charlesmurray
Update:
@PayPal
sent me several hundred words of legal gobbledygook explaining why it's completely reasonable for them to collect a $1,495 fee on a transfer of $50k from father to daughter that never went through. They're still holding onto my remaining $48,505 (collecting interest) while they finish checking that the same guy who originally sent the money should be the one to get it back. Uneffingbelievable.

Sometimes the smartest and most learned people have the least common sense.

[Jed Clampett]

So zelle is the safest transaction other than cash?

[coltsfan23]

So zelle is the safest transaction other than cash?

Bank wire is the actual next safest, but it can be a hassle and only an option during business hours. Zelle is the best bet of the common electronic payment methods (Venmo, Cash App, PayPal F&F) but it isn't completely foolproof.

Hopefully the rollout of FedNow allows better peer to peer options over time.

[jamcas997]

Bank wire is the actual next safest, but it can be a hassle and only an option during business hours. Zelle is the best bet of the common electronic payment methods (Venmo, Cash App, PayPal F&F) but it isn't completely foolproof.

Hopefully the rollout of FedNow allows better peer to peer options over time.


I do not want the FED controlling anything I do. I want them out of my finances. It needs to be repealed.

[Dalston]

I do not want the FED controlling anything I do. I want them out of my finances. It needs to be repealed.

If Fed operation of FedNow is anywhere near your top 100 concerns in life, you must be doing really well. You do realize that:

1) The Fed is already responsible for managing all domestic wires, all check clearing, and roughly half of ACH payments.
2) The Fed cannot initiate or stop payments in FedNow or any of these existing systems. It's role is limited to passing instructions from the originating bank to the receiving bank, as well as facilitating net settlement between banks.

What precisely are you worried about happening to you?

[jamcas997]

If Fed operation of FedNow is anywhere near your top 100 concerns in life, you must be doing really well. You do realize that:

1) The Fed is already responsible for managing all domestic wires, all check clearing, and roughly half of ACH payments.
2) The Fed cannot initiate or stop payments in FedNow or any of these existing systems. It's role is limited to passing instructions from the originating bank to the receiving bank, as well as facilitating net settlement between banks.

What precisely are you worried about happening to you?

Plenty more than I care to discuss here.

[Jed Clampett]

So just to confirm using UPS or FedEx and if lost package marked (collectibles) the max payout is 1K even if insured for higher value?

[shrevecity]

So just to confirm using UPS or FedEx and if lost package marked (collectibles) the max payout is 1K even if insured for higher value?

I know with fed ex it is or used to be

[Jed Clampett]

I know with fed ex it is or used to be

Thx 4 info
I’m just trying to get confirmation on UPS Max insurance limits. I’m getting conflicting info.

[jcmel323]

this is happening a lot this past weeks. Might be a new norm to scam.
Has anyone been able to win these types of cases?

[shrevecity]

this is happening a lot this past weeks. Might be a new norm to scam.
Has anyone been able to win these types of cases?

Unauthorized payment claims are EASY to win, they just sometimes drag out.. You are 100% covered if you show item was delivered. I have won dozens over the years.

Well you don't really win them you just are not held responsible by Ebay. Ebay loses most of these even with your proof but if you show delivery they are required to cover you since they are the actual processor of the payment not you.

[Asian62150]

UPDATE: After reviewing the info we received, we were unable to cover this payment and have debited $xxxxx USD from your PayPal balance. We’ll attempt to recover this amount from the buyer’s financial institution. If we’re able to recover the payment, the money will be credited back to your balance. It could take up to 75 days for us to get a resolution.

So now my account is negative but they haven't taken anything from my bank account. They did tack on an extra $15 for "Standard Dispute Fee" whatever that means.

Thankfully I already took the money out of my PayPal account. But can PayPal just reach into my bank account and withdraw the money if I never pay it? Can I just leave my PP account negative forever and open a new one?

[shrevecity]

UPDATE: After reviewing the info we received, we were unable to cover this payment and have debited $xxxxx USD from your PayPal balance. We’ll attempt to recover this amount from the buyer’s financial institution. If we’re able to recover the payment, the money will be credited back to your balance. It could take up to 75 days for us to get a resolution.

So now my account is negative but they haven't taken anything from my bank account. They did tack on an extra $15 for "Standard Dispute Fee" whatever that means.

Thankfully I already took the money out of my PayPal account. But can PayPal just reach into my bank account and withdraw the money if I never pay it? Can I just leave my PP account negative forever and open a new one?

They can send you to collections or next payment you make they could tag yhe negative to it. Opening a new account would just increase odds your accounts get locked