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Monday, December 04, 2006

PayPal is a RIPOFF!

Can I say that PayPal is a ripoff? I mean, a serious rip-off. These people running the company truly have no concern for consumer safety or protection -- all they really care about is collecting their fees, even if the people using their services gets fleeced. It is not like there are a lot of viable alternatives, especially from an eBay perspective. eBay has basically tied their service to PayPal -- perhaps the justice department should approach them about possible anti-trust proceedings.

I have just completed using the PayPal dispute resolution process and whoever designed it should be fired. It exists only for appearances, and has no real teeth or meat to it. In fact, it benefits sellers and especially the fraudulent ones. Let me explain why I see it this way.
Today marks day 10 of my claim & dispute process. As of day 10, I was supposed to have the case decided in my favor and have the appropriate amount of funds returned to my account.

However, instead I found this description on my case:
"We have completed our investigation of this case. We attempted to process a refund from the seller's account to your account. Unfortunately, the seller's account does not contain the funds necessary to cover this refund. We were able to recover $0.00 USD. We have taken action against the seller and are working to recover the remainder of your refund. We will contact you when we have more information. No further action is required of you at this time."

Big woopty-do. Thanks PayPal for doing absolutely nothing. Not only did they not freeze the funds in the account when I reported the claim and submitted a notice of potential fraud, they allowed the user to completely drain the account. Let's also notice the complete ambiguity of the rest of their message about taking "addition action". A little more information would be appreciated.

So, basically in the case of this fraudulent activity, PayPal did absolutely nothing for 10 days other than sending automated emails to the seller. Not active investigation, no fraud holds, not freezing of funds. Great work PayPal on working for the fraudster.

I'm interested to see how this all turns out since, no further action is required of me at this time.