Don't do Paypal exchanges for E-Gold

It appears that recently there has been a lot of new posters who are requesting for Paypal funds for E-Gold at some quite attractive rates.

But as you all know, E-Gold transactions provides no recourse for the sender meaning that if the buyer does not fulfil his side of the bargain, there is no chance of you getting your money back.

Paypal on the other hand is Pro-Customers and would normally side with them and if someone dispute a transaction, the buyer need to provide evidences in order to defend themselves. However, most times the buyer will get the money back in such transfers.

Money exchanges are deemed illegal in Paypal if you do not have a license to do so. It is clearly stated in the Paypal TOS. Here is the reference http://www.paypal.com/cgi-bin/webscr?cmd=p/gen/ua/use/index_frame-outside&ed=moneytrans

So basically the one requesting E-gold from you and supposedly wants to pay you in Paypal, beware. It make seems tempting but what is too good to be true is usually not true.

What happened to many is the person will send you the Paypal money and you send them the e-gold. Once you send them the e-gold as far as e-gold is concerned, the deal is final. The person who paid you the Paypal will then launched a dispute againsts you in Paypal and since Money Transfer without a license is deemed illegal in Paypal and that there is no physical proof of delivery, they will most likely be able to get back their money.

The end results is that you lose your e-gold funds as well as the Paypal funds. It will also add a blackmark to your reputation in Paypal.

Some people who get scammed tried to withdraw all their funds in Paypal but that will inevitably leave your account in negative balance when Paypal refunds the other party. Doing so will put your account in the Limited Status where you be probably stuck with a unuseable account.

Do not fall into this scam. If you still want to take the risk, do it with people you know or at least be able to check up on their reputation. The thing is that most requesting this type of exchanges are new members without any iTrader reputations.

Take this as a warning and if you still decide to do the exchanges, do it at your own risk and do not come back here complaining about anything or being cheated or anything.

 

The only time I ever took part in an exchange (sort of) was when I got a customer payment via e-gold and I got stuck looking at it not having an idea how to get hold of those funds. I happened to meet Disguised who proved to be an honest member on DP and helped me out.

Since I don't do this on a regular basis, I don't think I violated any PP rules. I doubt I'd be doing another "exchange" any time soon since I completely gave up on e-gold.

Good information though, eddy

 

I think almost all people here in DP that doing some exchanges know what is the consequences that their doing. But anywho thanks for the alert. I know there are still newbies out there that is not aware of this exchange problem. Cheers!

 

they're like VCC buyers. they know exactly what they're getting into.

 

Yes, I would believe that they know the risks involved but I think sometimes the greed just gets the better of them.

Of course, I am not against exchanges but if you need, do it with an approved exchanger or at least with someone you really trust.

 

Even i was looking for VCC but going through all the post in DP, now i want to play it safe.

 

No offense but Nio would need this thread to be read

 

Nio is smart enough,he deals with only trusted members.

 

Well, by now we all know that its risky to deal with egold and paypal exchanges. We have heard a lot on DP.Yes, to all those newbies out there.Dont deal with paypal - egold exchanges.

 

Thanks for alerts us. I am sure most of us do such a exchanges but now we have to take care when we do in future.

 

What about paypal and moneybookers? Is that safe to do?

I don't have a moneybookers account yet, but may get one soon. Not too sure yet..

 

Moneybookers is also like Egold,u cant file a chargeback.

 

The thread creator should probably make a notice of that in the first post, to warn against MB scams too!

Seems like paypal has something that everyone else doesn't. Interesting

 

yeah~
I also just find the honest people to trade because I am provide egold exchange to paypal .

 

Well, I do have a Moneybookers account but never found a place where I could use it anyways.

I do not know Moneybookers enough to actually comment on it but thanks for the feedback.

Generally, I'll say be careful when dealing with Money Exchanges because by right, you need a state license for that. You know all those money laundering issues and such.

Paypal just want to play fair for the buyers like most other online credit card payment processors do because that is pretty much the terms for credit card merchant.

Moneybookers from what I understand does not allow you to do a pass-through service like Paypal. With Moneybookers, you first need to fund your account via a credit card, bank transfer or when someone sends you money before you can use it. Once the money is in your account then you can use that to pay someone. Basically, you will convert real currency to Moneybookers Dollars and as such would be subjected to Moneybookers rules.

Paypal on the other hand allows you to use existing funds in your account or drawn on demand on your credit card (and in some countries, from your bank account) to allow you to pay the buyer. This makes it like a traditional 3rd party credit card processors.

I have been using other 3rd party credit card processors around to understand that when it comes to online purchases since the merchant cannot physically inspect the credit card in question and also to obtain a signature, the protection would be geared towards the customer rather than the merchant.

Moneybookers and E-gold get around this by not allowing you to do a pass-through payment. With Moneybookers, the funding of your account and using the funds to pay someone is considered as two distinct transactions which is not associated with one another.

 

I think that there should be a thread (this one) or one related to it notifying exchangers to never exchange with newer members that are offering PayPal, or even possibly MoneyBookers.

I think we should even have a money exchanging section to buy/sell/trade that only allows members that are at least X days old and have at least X posts to enter.

Just my 2 cents, but thanks Eddy for helping out so much!

 

Well, no worries. As much as this is just commonsense and people who go through the exchanges knows the risks, it is however still happening. I doubt a warning like this would do any good.

 

Yes EG/PP scams still going on.Latest being http://forums.digitalpoint.com/showthread.php?t=314380