Three Different Scams PayPal Has Yet to Stop

Many people have been relying on PayPal for purchasing items or selling them over eBay, sending money to people for services and many other avenues. Since investing in credit card processing services is perceived as “pricey,” many people turn to PayPal. While PayPal can be a good tool to send money over the Internet to people you actually know, when it comes to transactions between strangers (the majority of transactions on PayPal) the site just does not offer anything to safeguard you against certain scams.

With eBay and PayPal almost being synonymous with each other, most would assume that making a purchase on eBay and then paying through PayPal would be completely safe. In most cases it is. However, there are certain things that PayPal does not explicitly clue you in on until it’s too late sometimes. While they have been careful to cover themselves in regards to “fine print” and pages & pages of service agreements that very few ever have the time to read, here are some things you should be aware of before using PayPal:

1) Don’t allow a Buyer to Change the Delivery Address – If someone buys something off of you through eBay (especially a high-priced item) and then requests you send it to an alternate address, do not accept this. The person can say they never agreed to the purchase and will cancel their payment. PayPal will be on their side because you sent it to an alternate address not verified with that particular account. Many scam artists take advantage of this loophole in PayPal’s policies because few people know about it.

2) PayPal Still wants their Money – For many people who have used PayPal as a means to send money or receive money, they have come to find that PayPal wants their cut regardless of you actually receiving payment. If someone sends you a payment through PayPal and then cancels the payment, you are often still responsible for the PayPal fees attached to the transaction.

3) Always Invest in a Tracking Number – Many people are able to scam you out of payment through PayPal simply because you did not include a tracking number. (Think innocent until proven guilty) The burden of proof is on the seller and if you sent an item to a buyer without a tracking number, PayPal can reverse the transaction simply if the person says they never received it. You may have sent it, they may have received it, but as far as PayPal is concerned, without a tracking number, you cannot prove you sent the item, and the charges will be reversed. You may also be on the hook for some PayPal fees.


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