Perfectly legal to use paypal for Fraud!

Hello paypal,

I sold my established web site BollywoodRules.com today. Here are the
details that I sent in the paypal invoice to the buyer:

— Amount: $2,000.00 USD
— Subject: Website Purchase

— Note: BollywoodRules.com Via http://www.sitepoint.com/marketplace/
auction/2234?

Buyer: Sue A Carr – email: sacarr@insightbb.com
Confirmed Address:
5024 Bent Creek Drive
Floyds Knobs, IN 47119
United States

Invoiced to: Amy Hood – email: alh@insightbb.com

It was agreed with the buyer that as soon as he transfer the money, I will transfer the domain ownership of the site to him.

The buyer sent the money as promised into my paypal account, but as soon as I transferred the domain ownership, I got this email from paypal about unauthorized access to buyers account.

I have attached the chat log that I had with the buyer during the transaction, which was until one hour ago.

Best Regards,

Talha Ghafoor

—————————————————————————-
Dear Talha Ghafoor,

Thank you for contacting PayPal with your concern.

In accordance with PayPal’s Seller Protection Policy, the transaction involving unauthorized funds has been reversed.

The transaction did not qualify for Seller Protection because:

Because comparable proof-of-postage is not currently available for electronically-delivered items, we are currently unable to offer Seller Protection for digital goods and other electronically-delivered items.

Please note that this withholding is in accordance with our User Agreement.

In the future, you can protect yourself against fraudulent transactions by following the conditions of our Seller Protection Policy. To review the specific terms and conditions of the Seller Protection Policy, simply click on ‘User Agreement’ located at the bottom of any PayPal
webpage.

It is my pleasure to assist you. Thank you for choosing PayPal.

Sincerely,
Mary
Protection Services Department
PayPal, an eBay Company

Copyright � 1999-2006 PayPal. All rights reserved. PayPal (Europe)
Ltd.
is authorised and regulated by the Financial Services Authority in the
United Kingdom as an electronic money institution. PayPal FSA Register
Number: 226056
—————————————————————————-

Hello Paypal,

Thanks for the support. I think I have learned my lesson to never use paypal again for selling electronic item. I not only lost $2000, but also penalized by paypal for amount of $47 for payment reversal.

I spent many months on establishing my web site, which has high ranking on google and has been generating constant revenue for me from many months.

I transferred the site to the buyer as soon as I received funds on my paypal account, and minutes later, those funds were taken back. The buyer has told me that he did not authorize the transaction and someone used his password to do it. I can clearly prove that I transferred my property to the buyer exactly as it was mentioned in the paypal invoice I sent to the customer.

I understand that paypal does not provide any protection to sellers in my case, but this policy is plain unjust as paypal is not taking any action against the fraud buyers. With very little efforts and common sense, paypal can see that the buyer is a fraud.

This policy is clearly encouraging fake buyers to shop for any intellectual property in electronics format and just say “they did not authorize this payment”.

If there is no protection on selling electronic items, then is it okay for me to start buying electronic stuff all over internet using paypal and reverse the transactions?

Regards,

Talha Ghafoor
—————————————————————————-

Dear Talha Ghafoor,

Thank you for contacting PayPal with your concern.

I understand your frustration with this issue, however as stated in our previous communication to you, we were obliged to reverse these funds as they were reported as being fraudulent, which might I remind you is not only a policy of ours but also the law.

I am sorry that you have had this experience and remind you that this can be avoided by ensuring that any transaction that you make is eligible for Seller Protection as it is clearly stated in our User Agreement that we are unable to cover you for transactions not covered
by this policy.

Please review this Agreement, terms of which you accepted when opening your PayPal account.

It is my pleasure to assist you. Thank you for choosing PayPal.

Sincerely,
Mary
Protection Services Department
PayPal, an eBay Company

Copyright � 1999-2006 PayPal. All rights reserved. PayPal (Europe) Ltd.
is authorised and regulated by the Financial Services Authority in the
United Kingdom as an electronic money institution. PayPal FSA Register
Number: 226056