CC Frauding through PayPal

Discussion in 'PayPal' started by ottodo, Aug 5, 2006.

  1. #1
    Hello,
    I have question related to accept payment using Credit Card through PayPal:

    If I want to accept this payment, How far can I be sure if this CC is stolen or not?

    I heard that PayPal freeze the account which accept stolen CC...

    Is there anyway to protect my paypal account???


    Thx
     
    ottodo, Aug 5, 2006 IP
  2. eddy2099

    eddy2099 Peon

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    #2
    When you use Paypal to receive Credit Card payments, you will distance yourself from the credit card holder and you will not have any details of the card. Paypal chooses to accept or decline the transaction.

    I have not heard of paypal freezing accounts accepting stolen credit cards but I've heard of them freezing accounts of people who uses stolen credit cards to make payment.

    However, if the transaction goes through and the card holder do a chargeback, paypal will claim the sum in question from you. If that happens, you have to make sure that you return paypal the money or else your account can get frozen.

    As a tip, only transact with Verified Paypal Account Holders especially for larger account transactions. With Verification, the card holder would claim to be who he is because he needs the credit card statement to get the verification code needed to verify the account.
     
    eddy2099, Aug 5, 2006 IP
  3. ottodo

    ottodo Guest

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    #3
    Can you explain more for these ideas:
    How can the card holder do chargeback??
    what does this mean "the card holder would claim to be who he is because he needs the credit card statement to get the verification code needed to verify the account"??
     
    ottodo, Aug 6, 2006 IP
  4. timw

    timw Peon

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    #4
    Chargeback-
    A payment dispute initiated by the cardholder with their credit card issuing bank. The amount of the disputed transaction is immediately withdrawn from the merchant's bank account, and the merchant can dispute the chargeback with proof of purchase, signature, proof of delivery, etc. A chargeback fee is usually assessed to the merchant on top of the actual transaction.

    Basically, the bank just forces the money back.

    Verified Paypal Member:
    When you add a credit card to your Paypal account, you have an option to verify it. Paypal will charge your CC a tiny amount of money, and your credit card statement will show a code corresponding to this transaction. You then go back to Paypal and enter the code, to prove that you are the owner of the credit card. A thief would not get your billing statements right?

    Hence, the chances that a payment was made by the legitimate owner on a verified account is much higher, because it's much less likely that someone just created an account and added a CC.

    Hope this clears it up.
     
    timw, Aug 6, 2006 IP
  5. ottodo

    ottodo Guest

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    #5
    @timw thanks alot
    but i have question:
    Should I acccept payment from just Verified member or i can accept from UnVerified??
     
    ottodo, Aug 6, 2006 IP
  6. crazyryan

    crazyryan Well-Known Member

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    #6
    I wouldn't advise accepting big sums of money from an unverified member although the verified paypal could have been phished and hacked so either way your still at risk.
     
    crazyryan, Aug 6, 2006 IP
  7. Black_Hand

    Black_Hand Peon

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    #7
    Well, i think i posted this in some other thread.

    YES paypal will freeze ur a/c if the transaction is fraudulent. You won't be able to access your funds...or do any further transaction with that a/c.

    And it might even take WEEKS to resolve this kind of issues !!

    SO DON"T Accept payments from UNVERIFIED A/c.



     
    Black_Hand, Aug 6, 2006 IP
  8. sysop

    sysop Peon

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    #8
    If the sum is small, you should received the payment from Unverified Paypal user. But when the sum is high enough, please remember to deals with Verified Paypal user only.
     
    sysop, Aug 6, 2006 IP
  9. timw

    timw Peon

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    #9
    You should be careful always anyhow. I sold an item for $350 on eBay, only to find that it was a stolen account. His eBay account had high ratings, his Paypal had high verfired ratings. Just be careful and look for suspicious signs - i.e., if the buyer is asking u to ship to a location other than their billing location. if they buyer is paying you for something as if money is not an issue - "i don't care how much it costs just give me the item and i'll give you money". I'm sure there are hundreds more you can think of. :)
     
    timw, Aug 6, 2006 IP
  10. SNap3

    SNap3 Peon

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    #10
    I wouldnt do any higher then 150 bucks with paypal member.

    I have been scammed by a verifyed member after the trade I noticed that he was registerd from pizza hut.
     
    SNap3, Aug 6, 2006 IP
  11. ceetee

    ceetee Peon

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    #11
    Stolen credit cards aren't the only worry. If your selling intangible goods, the buyer can claim they didn't receive the goods and ask for a refund. Unlike goods with a recorded delivery, there's no right of repeal.
     
    ceetee, Aug 6, 2006 IP
  12. ottodo

    ottodo Guest

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    #12
    Can you tell us more about your story???
     
    ottodo, Aug 6, 2006 IP
  13. PedstersPlanet

    PedstersPlanet Peon

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    #13
    Aint that the truth.... and attracts the scammers more.... hence, win.
     
    PedstersPlanet, Aug 6, 2006 IP
  14. eddy2099

    eddy2099 Peon

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    #14
    Well, the chances of people trying to fraud you is not the norm. Most people I deal with are honest and that is good enough for me.

    You may get one or two bad hats once in a while but they are a dime a dozen. If you get more fraud then honest sales then you need to evaluate what you are doing because it may seems that you are not selling to the right type of people or that you are engaged in something dishonest.
     
    eddy2099, Aug 6, 2006 IP
  15. SNap3

    SNap3 Peon

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    #15
    Well, I was selling this " virtual item " .. I recived the money.
    I gave him the item, After 5 minutes I recive a note from paypal.

    Your payment has been reversed. I checked why he reverse.

    " Items not as described, also it was broken "

    I was like what the hell? Im totaly sure he was aware of what he was buying.
    I took a look at hes profile, Saw hes name and so found some very interesting thing. He was registerd too Pizza hut in US. I was LOL? Then emailed paypal about it, They did not care that he was registerd from a pizza hut :S

    Here is the information he used.

    
    Address:		Jason Johanson
    1399 pizza hut special
    Lemoore, CA 93245
    United States
    Code (markup):
    Also here is hes email adress >
    Watch out for that one!

    Thats my story ;)
     
    SNap3, Aug 6, 2006 IP
  16. ottodo

    ottodo Guest

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    #16
    i am really sorry for you
    i have never used eBay and i will not use it at all
     
    ottodo, Aug 6, 2006 IP
  17. sysop

    sysop Peon

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    #17
    For me, I only use small amount of monies for Paypal transaction. Not even more that 50 bucks.
     
    sysop, Aug 6, 2006 IP