How to be eligible for PayPal buyer protection policy

[skyichigo]

If i had a fairly new 2-3 weeks old PayPal account with 2 feedbacks as buyer, and now I am looking at cheap iphone 4 on ebay for less price. the seller has some feedbacks. if I go through the purchase, and something went wrong, can I get my refund back via PP? As they said to be eligible for Buyer Protection, my account has to be in "good standing".

2-3 weeks old, 2 feedbacks, verified via CC, is it considered "Good Standing"?

[Modee]

Good standing just means that your account is open. The protection that PayPal offers you is to some extent government regulated, so they must offer you protection as long as you follow the basic guidelines and it is a bona fide purchase for goods. (You might be out of luck when it comes to purchasing intangible goods such as services.)

However, when it comes to higher ticket items it is a good idea to pay with your credit card through PayPal rather than your PayPal balance. Although PP really hates it if you do a chargeback, and may even threaten to close your PP account (their TOS state that you will not do a chargeback for any credit card funded purchase made through PayPal), most of the time they back off unless they get stuck holding the bag for the dollar amount of the purchase.

You will notice that often when you try to pay for an item with a credit card through PayPal, it will not allow it and force you to increase the account balance through, say a banking ACH transfer, and then allow you to purchase with funds in your account. This is, again, because PayPal is fearful of chargebacks that sometimes leave it in the lurch.

Also, be sure to check the notation on the purchase, either at the time you make the purchase or when you receive the email verification it will indicate that the purchase is eligible for the buyer protection. It would be best to know before you purchase of course, but sometimes you can't find out until later. Basically, whether or not the purchase goes through with protection depends more on the seller's standing than yours.

Check out also
Ebay's Buyer Protection Policy reemerges - cases will be used to calculate DSRs - Free EBAY, PayPal, Business and Law Forums - Ebay Suspension, PayPal Limited

[skyichigo]

So by what you mean, if I used credit card as back up via PP, I would most likely to get my money back despite the seller trading history. As they fear chargebacks via credit card.

[Modee]

I am not sure what you are saying there, but what I meant is, if you pay with credit card you will have more protection. All PP accounts have a credit card attached as backup funding - unless it is used as the funding source for the transaction, it offers zero additional protection for you as a buyer.

To digress a bit and discuss you, as SELLER:
In fact, having the credit card there as back up funding is actually detrimental to you the seller in the event that your account is charged back by a buyer - PP will have an easier time getting at funds to cover any deficit.

[skyichigo]

Ok, here for example, I got an ebay buyer account, then I found a great deal said an iphone 4 brand new but cheaper 20% than RRP price on eBay. The seller has 0 feedback trading history, registered 4 months ago. If I go with the transaction and used my credit card instead of bank , how likely will I get my money back via Buyer Protection Policy, in case the seller screwed me. Thanks modee

[Modee]

Check the link for the Ebay buyer protection policy noted above. That is what will protect you primarily. PayPal for the most part will protect you only if the seller ships you nothing, or the item received is significantly not as described.

In the situation you outline above your credit card will offer you secondary protection if you do a chargeback, but if you do a chargeback PP may close your account because their TOS state that all disputes must be through them and that you waive the right to do chargebacks. Also, as noted, you may find that PP does not even allow you to fund the purchase through a credit card in the first place, even if you have a zero balance in your PP account.