Avoid the Paypal e-Cheque ScamAs the internet grows and more people begin to buy and sell, online payment facilities will accrue more members daily. The largest and currently one of the most popular is Paypal.
Whilst Paypal make every effort to ensure its members safety, an entire fireproof system, can prove to be very difficult to produce. Everyday, there are members who join who have one intention, to scam genuine users out of the hard earned money.
Whilst these members are in the minority, if you fall victim to them, this stat does not matter.
One loophole that Paypal have left wide open is their Paypal eCheque system. This is a method, whereby the 'buyer' can purchase using other debit card details away from the actual paypal account balance.
Sounds OK, read on.
When you receive the notice that you have been paid, you then wait 7-10 days for the funds to clear, after which, you will receive notification that the funds have cleared and are in your account.
Now, normal practice would be to ship the goods and the transaction would be complete. No problems there then.
BUT THIS IS WHERE THE SCAMMER TAKE THE ADVANTAGE
After a period of time, the user who wishes to abuse the system, will report the transaction to their bank as being fraudulent (or indeed it could well be that there account has been misused, no conclusive evidence to determine either way, so we will assume that the user have full knowledge) and their bank will reverse the transaction and paypal will soon follow, taking the money out of your paypal account, even if this results in your balance going negative
So how, can you avoid this and ensure you are protected?
Some simple tips that could save you money in this event.
1 NEVER ACCEPT ECHEQUES FROM AN UNCONFIRMED ADDRESS - if you do, and they reverse the transaction, you are NOT protected by Paypal
2 CONTACT YOU BUYER BEFORE SHIPMENT - send a recorded letter to the address (a receipt maybe). This will require their signature and will prove they live their.
3 INSTRUCT YOUR COURIER TO DELIVER INSIDE - under no circumstances should they hand the parcel to anyone who 'appears' from an alleyway or come in through the gate at the same time.
4 CHECK YOUR BUYERS FEEDBACK - first stop for many, see what others have said
5 EMAIL THE BUYER - try and obtain a telephone number (landline would be best)
6 FOR HIGH VALUE ITEMS - check the electoral register for their address, updated regular and is a good source of information
7 DO THE BUYERS NAME AND ADDRESS MATCH THE ACCOUNT DETAILS? - Check that the paypal account belongs to the buyer, if it doesn't, refuse and report immediately.
If you are in any doubt at all, then refuse the payment and request an alternative method (we do this as a matter of fact now, we do not accept any e-cheques). Genuine buyers will be happy to do this, scammers will be determined to pay by this method.
Until paypal get tight on this method, it will be open to abuse so be careful.
Happy selling, it is safe online as long as you take care...
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Shopping online? Things to consider You are ready to purchase that sought after item, but are you safe? Below are some points to help you decide...
Is there a 'landline' contact telephone number visible on the website?
Do they display their address and is it a PO Box?
Can you find an address to return your item if it is not as you expected?
Has anybody you know traded with them?
Have you heard of them before?
How long have they been trading?
Is their checkout process 'secure'?
What do their terms and conditions state?
What is their delivery time schedule?
Are all the cost clearly displayed?
Do they belong to any 'professional body' that you have heard of or you can check out?
What is their 'privacy policy'?
Do they store your card information?
This list is by no means exhaustive nor is it an indication that your prospective shop is not legitimate if they do not meet all the above.
During the whole process, if you are in any doubt at all, then call the supplier when possible. Most traders will be very happy to assist you further and in most cases, orders can be taken over the telephone.
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