Using REFUNDS as a tool to overcome a limited PayPal account - PP Refund

GreenBean · #23 03-10-2008

Taking from paypal balance is a heck of a lot different from taking from bank account. This has to be clarified quickly: much potential for problems.
Heck, I allow only the bank manager and me to touch my money.

atmxl....please advise us as soon as possible.

atmlx · #24 03-10-2008

guys, they took the money form my bank account, not my paypal balance...So I am basically screwed here because I can't even file refunds from my paypal balance to the users who I have already refunded... I have no idea what to do.

I refunded 2 guys so far (money from my bank account it turns out) but they will return those funds...(they I mean my 2 customers)

Please give me advice lol...

atmlx · #25 03-11-2008

<help>

lol

thelizardking · #26 03-11-2008

I haven't heard of Paypal taking a refund out of your bank account..im not sure how to help..be careful about your buyers returning the funds as they might go into Paypal balanceand not your bank..see if they will pay with googlecheckout or something..

GreenBean · #27 03-11-2008

fyi there is a thread called paypal try to take funds from bank account dated
1/23/2008. When I re-read it, there is info about what paypal does.
Maybe we should all make sure to keep full control over our monies.... and avoid
paypal.

atmlx · #28 03-11-2008

Fed up...All of this because of a tiny mistake that blew a small problem into a bigger problem. I will let that account die... I created 2 new accounts in the past 2 days and I will use these two and hopefully they will last a good month or two...

GreenBean · #29 03-11-2008

Man, don't knock yourself too hard. Make this a lesson and do your best to
keep beating the ebaybeast. The forum is here to help if you need.Good Luck.

atmlx · #30 03-12-2008

Yeah, I learned a few thing from my mistake, Ive learned a lot from my own mistakes in the past on ebay, so eventually I will be almost bulletproof

On a good note, on my original account from 2005 which I still have, I became a powerseller this week. As for the 2 refunds from my bank account, the 2 clients will return the funds as soon as they receive them.

mjstallion · #31 06-25-2008

After not having used Paypal for months, I finally started accepting it on one of my accounts because Google Checkout is such a hassle and because there have been reports that people who play the Paypal game properly are doing ok without getting limited.

Anyway, about a month ago, I started listing on a 60 day old ebay and paypal account, and started to pull in 1K in sales a day into the account without being limited.

Unfortunately greed got the best of me and I started selling more and more on this account, so I was forced to pull higher and higher withdrawals. Anyway, to play it safe, a couple weeks ago I put a few of my own credit cards on some other virgin paypal accounts, and racked up 5K worth of purchases to protect myself in case I got limited.

Well that time has come, and they're asking for a SSN, and I got 7K in there. I plan on refunding every buyer of that 7k the money they paid, and give them an explanation and request that they pay me via Google Checkout or ship the item back to me postage paid. I guess that maybe a third will cooperate, and the rest will run off. But not refunding them only benefits paypal, whom I HATE right now, since even if they were to send me a check in 180 days it would go to another name in another state.

In addition to refunding the 7K to my buyers, I will also refund the 5K that I funded with my credit cards. So that will put me 5K in the red. I know the first thing Paypal will do is try and pull that money from my linked Wamu savings account, but it's been closed. After that they will send collection letters to some address that doesn't exist. But what will they do after that? Will they go to the authorities and try and track me down through that wamu account number?

I've stiffed paypal before for 300 because a buyer did a bull**** chargeback, and all they did was send out collection notices and that was it. But $5000 is a totally different story. Can I pull it off??

OMB · #32 06-25-2008

Yea I think it'll work out just fine. Also many people on the board have reported that Paypal will send the check to any address u give them once the 180 days are over.

Also, since its 7k - Thats a high figure so I'm guessing you've pulled out some money and still had 7k in there? I would talk to all your customers and only refund the ones who have assured you they'll cooperate with the googlecheckout plan. Some might assure u and still run off but this way your chances of getting all or most of your money back are much higher. And then play the 180 day waiting game and get your money back.

Personally, if I were u I'd wait it out without refunding anyone and try to get all my money back after the 180 days are over. That is, if Paypal will really mail the check to any address u give them after the 180 days.

mjstallion · #33 06-25-2008

I have a ⊗⊗⊗⊗ name on file with Paypal so even if I received the check it wouldn't do me any good.

Regarding refunding myself first, I'll definitely do that, but I plan on refunding the 7K to all my customers because I've learned from experiences past that whenever you try and do stuff like this with buyers they automatically assume you are trying to scam them. If I refund the money FIRST to them, I have a far better shot at getting their cooperation.

My biggest concern is Paypal coming at me criminally if my account is 5k in the red.

OMB · #34 06-25-2008

Don't worry about the ⊗⊗⊗⊗ name on your Paypal. When you get the check you can just endorse it over to your real name on the back. Your bank will then deposit it into your account. It's very easy.

Also, you're right about customers thinking you're going to scam them. Some of them will think that for sure. Like I said, 7k is a large amount of money. I wouldn't risk taking the chance of hoping customers will pay you. Once they get their money back, very few will go along with your plan. Just wait out the 180 days and get all of your money back by check.

If you're still planning on doing the refund thing anyway, ask them what they think about the plan BEFORE you refund them. Don't refund them first...most will never reply you afterwards. You can't trust strangers.

imjustme · #35 06-25-2008

Don't refund your buyers. Chances are 70% of them won't ever send you back anything. Just wait 6 months and PayPal will allow you to withdraw.

mjstallion · #36 06-25-2008

I figure 70% of my buyers won't send me back anything. But keep in mind with the strategy I've laid out, I only need 2K of the 7K to pay me back for me to come out even. I think those are decent odds, as long as I don't get the feds at my door or something.

heather · #37 06-25-2008

Couldn''t you just add a new bank account to paypal once the time is up and do a direct transfer? The name on the bank account wouldn't have to match.

mjstallion · #38 06-25-2008

There is no way I'm waiting 180 days for this.

I guess my question was, If I am 5K in the red with a paypal account, would there be a criminal investigation or something of that nature?

But I'm guessing nobody has been in a similar situation with an amount that high, so I don't have an answer. Oh well.

Daoud · #39 06-25-2008

There will be a "Paypal investigation" which is mostly the The Collections Agencies letters. Unless you were a fraudlent seller and that 7k is money you stole online your good. Only thing they will do is send a Collection letter to the address registered on paypal.

mjstallion · #40 06-25-2008

I wonder how my situation is different from that of a "fraudulent seller" in paypal's eyes. Because from their point of view I'm taking 5K from them and running off.

OMB · #41 06-25-2008

Hmm...let me understand this situation completely clear. So are u trying to get your 5k to your other account, then refund your customers 7k worth. So actually, you are trying to gain 5k from paypal? You are taking 5k that isn't yours. In this case, you really are committing a fraud. I'm not saying whether its morally right or wrong or whether you'll get caught...but yes, in Paypal's view you are committing a fraud. Under anyone's view, its fraud.

I know you just wanna do this as retaliation, but its still fraud.

**aspkin** · #42 06-26-2008

A nifty way of protecting your self, it's the first I've heard of someone doing this. But yes if you do it the way you want to do it, its fraud. Will Paypal be able to catch you? I doubt it.

richcollegeguy · #43 06-27-2008

Hey man...we've all gotten screwed by paypal..hence why we're here. So although they've damaged your income stream, doesn't mean you should steal 5k from them (which is what I gather from your posts).

suspendednowwhat · #44 06-30-2008

how you refund 5K to your credit card? Paypal pulls money from your account. If there is zero balance, your plan will be dead. Either you own those buyers 5K or yourself 5K. Paypal wont lose a penny.