Sometimes, a scammer may make a payment to a seller’s PayPal account that exceeds the cost of the item they are purchasing. To avoid these schemes, check that the shipping address is valid before sending the item, and talk to your shipping company about making sure customers can't reroute orders. PayPal’s Seller Protection doesn’t cover shipments made to addresses that aren’t on file, so the seller loses both the item they shipped and the payment funds. The seller has no proof of delivery, because their transaction detail shows only the original, invalid address. When the scammer gets their shipment, they file a complaint with PayPal claiming that the item was never delivered. The scammer then contacts the shipping company and gives them a new, valid shipping address. The address will turn out to be invalid, and after several failed delivery attempts, the shipping company will flag the order as undeliverable in their system. Before the order ships, the scammer contacts the seller and asks them to ship the item they purchased to a new delivery address. Shipping address scams begin after an order has been placed and the seller has received the payment. Let's talk about PayPal scams and how you can protect yourself from falling victim to them.
PayPal scams are increasingly common, and can show up in a variety of different forms and methods that can trip up sellers who aren’t familiar with them.
PayPal also bypasses the chargeback process associated with credit cards, but that doesn’t mean you won’t encounter fraud and disputes on the platform. Merchants like it too, because it’s easy to integrate into their existing checkout pages. As one of the oldest and most trusted online payment systems PayPal remains a very popular choice among consumers.
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TIPS: How to choose Chargeback Services & Management Picking a Fraud Prevention Tool TIPS: Mobile App Fraud Prevention and Security Elements Tips for Identifying Credit Card Fraud TIPS: Preventing Card Testing Fraud TIPS: Gift Card Fraud Prevention FAQ: Fraud Monitoring with TC40 and SAFEĬredit cards remain the most popular way to pay for things online, but concerns about debt and interest charges have motivated many consumers to embrace alternative payment platforms.
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