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

[nikki404]

My Paypal account was limited with about $1600.00 stuck in it for 180 days. Can I refund this amount to one of my trusted customers eventhough it exceeds the original amount paid??

I will refund this in an effort to get it deposited into one of my other Paypal Accounts by this buyer.

[ebayhateluv]

hi- from what you are saying- i have tried before, you cannot straight out refund larger than orig recd from paypal, unless you do a send money, then that high amt would be questioned, sometimes on a limited, a day or so later, they will recap for you- i got one in july that said. although we are parting company,,,blah blah... you now have the ability to withdraw funds. also, i believe refunds are only there for 60 days , then the radio button disappears..someone correct me if i am giving incorrect advice. Thanks!

[nikki404]

Yes....the refund option is only there for 60 days. Sounds like I may have to wait the entire 180 days out without my money. Thanx for the speedy reply.

[hateebaymorethanyou]

Can you refund a few of your buyers and ask them to pay you with a different form of payment?

I've had to do that before and it worked - but I was very lucky and could trust my buyers as most of them were repeat buyers.

Good luck!

[poopdeck]

For those still using paypal don't get caught with your pants down.

Yes I heard a good comment on this site about protecting your money from the Paypal demon--like make sure your transfer of funds is completed before you send out your product.
But for those of us here who get limited and have no way out consider not refunding your customers but instead refund yourself.
The concept is straight forward -- what you are doing is making money requests to yourself which you pay, then immediately transfer to your account.
Now the only loss to you so far is the paypal fee incurred but you will get this back when you refund yourself.
Now someone here suggested that when limited you straightway refund all your customers sending your account into negative territory.
If possible, which I think it is, this seems to be a major flaw in the Paypal system--but only because their intention is to cheat people.

Regardless, the concept here is to always maintain a cushion of say $2000
per month which is your fee to Paypal in case you go down.
If you go down they will be hit with a fee of your chosing--as much as you can refund yourself.
Now this is just a concept and has not been verified by myself or approved by this site but what you would need is a reloadable card that you can either refund to or do a reversal of funds on, possibly the reloadable visa debit card such as the one recommended on this site by Chris Hanson?

Prepaid MasterCard & Checking Account | 100% Approval | No Credit or ChexSystems Check | Free Online Bill Pay.

[Jonas]

Make sure your paypal accounts don't get linked and if paypal won't let you refund, you can file a dispute.

You know.............

Actually someone could even use that technique to make money on paypal.

# Send a bunch of money to yourself. Pay using credit card.
# Sell stuff on ebay for a small fraction of the money you sent to yourself. Make sure you make them all use a confirmed address and tell them to use a credit card behind paypal for their safety blah blah.
# Withdraw the funds you sent to yourself equal to what the other people gave you.
# Wait for those funds to clear.
# Refund yourself. Money will go back onto your credit card and not to the paypal account.
# Close your associated bank account.
# Customers will later file disputes with paypal and then paypal won't refund them so they will hate paypal and trust it less. Then, if they paid with credit card and not bank account or paypal funds, then their money comes back and paypal loses money.


The only problem is this would have to be small amounts and you'd have to keep opening bank accounts which might cause problems after a while.

[imjustme]

Originally Posted by Jonas

The only problem is this would have to be small amounts and you'd have to keep opening bank accounts which might cause problems after a while.

I have 20+ bank accounts at a single bank, not to mention all the others. Never caused me a problem. My bank manager knows about PayPal and just asks me "they closed another one?" when I walk in. :D

[ivegotinfo]

i can open a bank account through my online banking in 2 clicks lol. so opening new bank accounts is no prob.
one thing is i dont really get this technique..

lets say you have :
Account1 and Account2

Send 500$ from Account2 to Account1

Withdraw the money from Account1 to bank

Accept payments into Account1

Account1 Gets limited.

Cancel Account1 Bank Account
Refund EVERYONE + the 500$ From Account1 and just leave it all be..

so at the end you have 500$ in Account1 BANK, and the 500$ BACK into Account2's BANK/CC

wow wait lol i just got it. that's 500$ for free!! hahaha omg... wow....jesus..

[OMB]

Whoa...has anyone tried this???

[Jonas]

Originally Posted by imjustme

I have 20+ bank accounts at a single bank, not to mention all the others. Never caused me a problem. My bank manager knows about PayPal and just asks me "they closed another one?" when I walk in. :D

That would be embarressing to me. I'd also feel I'd get thought of as a fraudster. I know I would get real redfaced if asked about this.

I'd much prefer to do some kind of online banking. Some online banks charge you $7 or $15 to close an account (I think netbank does), but if I can just open and close accounts online, it should be easy. Plus less paperwork.

I still would think if a bank sees someone opening lots of bank accounts getting money real fast, then closing them over and over, that they'd suspect the person was doing something fraudulent. Plus it would be a pain to explain this when doing your taxes, listing all these bank accounts, with all this paypal stuff going into them. IRS getting suspicious of money laundering or criminal activity.

Plus as for paying yourself, I think there's only one way to do it. Bank of America credit cards have something called Safe-something. Where you make virtual credit cards that link from your main credit card. They have the same AVS though but as for buyer accounts it should be fine. Just give if you like at 300 Clinton St, zip 90210 Then say you live at 300 Reagon St., zip 90210. This wouldn't work on the same seller account since the same zip and first numbers would get a link but ebay and paypal I don't believe are so picky on buyers. Plus you can use the buyer account again another time on your next paypal account.

[Jonas]

Originally Posted by OMB

Whoa...has anyone tried this???

If paypal freezes your account and you think it's for good, then clearly your ebay account is useless since paypal and ebay link. So you should try to refund yourself until your paypal balance goes to 0. Then don't ship anything and don't answer emails or log onto your ebay or paypal account again.

The only thing is if your paypal account doesn't get limited for a while, I am not sure how far back you can refund yourself. You certainly can't file a dispute after a while--I think 45 days. So you have to either keep sending yourself money and not only get your accounts possibly linked, but lose money in paypal fees. Or you can refund yourself later, but then send it again and possibly get both accounts frozen for acting weird.

[OMB]

Originally Posted by Jonas

Plus as for paying yourself, I think there's only one way to do it. Bank of America credit cards have something called Safe-something. Where you make virtual credit cards that link from your main credit card. They have the same AVS though but as for buyer accounts it should be fine. Just give if you like at 300 Clinton St, zip 90210 Then say you live at 300 Reagon St., zip 90210. This wouldn't work on the same seller account since the same zip and first numbers would get a link but ebay and paypal I don't believe are so picky on buyers. Plus you can use the buyer account again another time on your next paypal account.

There's another CC company that allows u to create virtual CC #'s through your main card. And the great thing is u can create a value on the card. You can also change the address on your CC account immediately by logging into your CC account online.

For example, I have a CC with a $3000 limit. I can create a virtual CC with a $200 max usage on it. Change my address on my CC to the ⊗⊗⊗⊗ address I have on ebay...then add the virtual card with a max amount on it to paypal and confirm the ⊗⊗⊗⊗ address. Then send the $200 from account 2 onto account 1. Then proceed to withdraw and file chargeback.

Also, I want to add that account 2 would have to be a ⊗⊗⊗⊗ account. It's probably even best to make sure that both accounts are ⊗⊗⊗⊗ accounts so that Paypal doesn't put the negative balance on your real name.

[Jonas]

Originally Posted by OMB

There's another CC company that allows u to create virtual CC #'s through your main card. And the great thing is u can create a value on the card. You can also change the address on your CC account immediately by logging into your CC account online.

For example, I have a CC with a $3000 limit. I can create a virtual CC with a $200 max usage on it. Change my address on my CC to the ⊗⊗⊗⊗ address I have on ebay...then add the virtual card with a max amount on it to paypal and confirm the ⊗⊗⊗⊗ address. Then send the $200 from account 2 onto account 1. Then proceed to withdraw and file chargeback.

Also, I want to add that account 2 would have to be a ⊗⊗⊗⊗ account. It's probably even best to make sure that both accounts are ⊗⊗⊗⊗ accounts so that Paypal doesn't put the negative balance on your real name.

Oh man can each virtual CC off the main account have its own different AVS rather than changing AVS for the entire card all at once?

What CC company does this?

[OMB]

Originally Posted by Jonas

Oh man can each virtual CC off the main account have its own different AVS rather than changing AVS for the entire card all at once?

What CC company does this?

YES it can! I've pm'ed u the company

Also I want to add that instead of buying gift cards like many ppl on this forum, I just use the virtual CC from my credit card company to make new ebay/paypal accounts.

[imjustme]

Same here. My bank in Japan allows me to create virtual cards, I just request one and its in my inbox 12 hours later.

[aspkin]

..................

[atmlx]

Hey,

My account got limited yesterday and I have around 400$ I would like to claim. I did the big mistake of doing refunds from my paypal (which sent money from MY BANK account to the buyers) so now I sent them my money, and the items' money is still in paypal.

What am I suppose to do, how do I get this money???

Please help me

[twdell]

your situation does not sound good. all you can do now is submit all of the info paypal is requiring. if you cannot do that they will end ties with you and hold your money for 180 days. hopefully you have submitted an address that is legit, because if you did not then after the 180 days the check will be sent to your ⊗⊗⊗⊗ address, and you will never see the money.

[thelizardking]

So when you did the refunds your saying PP didn't take them from the $400 they took them from your bank account?

[mantisinc]

Hmm, someone posted that they were able to send refunds on a limited account, but you're saying that it was direct from your bank account? That's pretty harsh.

Would filing a chargeback work on this?

[thelizardking]

Yeah it was me and they took from my Paypal balance...

[twdell]

yes, i have never had refunds taken from my checking when i had a balance in my paypal even when i was limited.