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Can Paypal reverse a Credit Card Payment?
 

Can Paypal reverse a credit card payment?

I'm not talking about a payment from the Paypal plugin, I'm talking about something like the situation below:

-You send payment via your credit card.
-You suddenly receive a massive payment
-You spend the majority of the balance in your account
-Paypal limits your account and reverses your payments

Could they reverse the first one, initiated via your credit card, even though you didn't file any sort of chargeback?

yes.....
They can do anything they want to.

I personally disagree, because I don't think it's legal to reverse a CC payment without a chargeback.

If they feel that the transaction is high risk, then why not. Its similar to what google checkout does when they no longer want you as a customer

Remember....
Paypal is not a bank and there fore do not have to follow the letter of the law...

So what your saying is you send payment via paypal to another persons paypal useing creditcard funding source then u get limted some time afterwords? What paypal will do is tell the person or bussiness you paid that it was a fraudulent funds and they well steal the money from the person you paid and limt it in your paypal account. If the person you paid sent out the items then there at loss.

I had this happen in the past i bought a ps2 from a buyer then he was just about to send it out and the bastrds limted me account then took back the $100 that i paid him and locked it in my account. I also had this happen to me i sold severices to a buyer and about 2 weeks later paypal emails me with some BS about fraudulent funds and took the money back from my account and locked it in the buyers account.

When u use paypal to make credit card payments the money gose from your credit card to your paypal then from your paypal to the person you pay. so there for paypal has control over the money from the credit card.