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Am I being scammed!
 

I placed a listing last night with very specific directions. First, I don’t ship to unconfirmed PayPal addresses, and two, bidders with zero feedback must contact me first before bidding. Well this morning that item sold for $400 dollars with the "buy it now" option and I received an instant payment from him, which was placed in PayPal’s 21 day hold. My question is, can I trust a buyer with zero feedback and their address is unconfirmed by PayPal? Their account has been opened since 2006, but they don’t have any feedback, so I am a little nervous that he may be trying to scam me.

wait till the 21 day hold is up before sending the item. Theres no way i would send it untill them and with a uncofrimed address at that way to risky.

I would NEVER send to an Unconfirmed address. Not even for $50...

Your gut instinct is correct, go with it.

What about with signature confirmation?

Refund the money, block the bidder (if that's still an option) and re-list the item.
With all the scamming-buyer horror stories out there, are you really going to trust somebody like this?

Damn, that pp account has $1500 in it and its a pre 11/2007 account without a ss#. So if I refund the money pp will put a limit on me? Should I just ship the item out and take it as a lost, so I can keep my account open?

Am I better off sending the item and maybe take it as a lost, rather than getting my pp account closed?

You can request that the buyer get the address confirmed before you ship.
Hell... I couldn't take a $400 loss. If you can, you might want to go for it.

Well,i wouldn't ship the item,i will refund the money first and contact the buyer to see if he would like to resend it and providing the confirmed address.

Why didn't you set in paypal to block payments from unconfirmed addresses?