How to Use PayPal to Rip-Off People and Get Away with It

Written by on April 22, 2008 in General Stuff - Comments Off

I created this post to make all users of PayPal aware of their terms of use flaw. This flaw allows a merchant in any country that accepts PayPal to create a piece of crap product/service and rip people off using PayPal.

I was a victim of this flaw, and hope that you don’t make the same mistake as me.

You NEED to be aware of this issue so that YOU don’t get ripped off again! PayPal is NOT on your side, and you will be very frustrated, and may never use their services again.

Here’s how some unethical merchants are making money by leveraging the PayPal system.

If you’re a merchant using PayPal to process your credit cards, there’s a loophole in the PayPal User Agreement that will literally allow you to rip-off all of all of your customers and get away with it.

Here’s how…

  1. create a piece of crap software or ebook that does not work
  2. promote it via pay per click, social networking sites, and SEO
  3. sell it to potential victims, opps i mean customers

When the customer calls, or emails you for support because your software or ebook doesn’t work, just ignore it. Soon the customer will become frustrated and contact PayPal for help.

And when PayPal contacts you to resolve the problem, ignore them too. Basically, just pretend that you don’t give a damn and they will all go away eventually. This works really well so you need to do this to all of your victims/customers.

Why does it work? Because PayPal is on the merchant’s side.

Here’s an excerpt directly from their website regarding claims about the quality or attributes of good or services that you’re trying to sell.

“We have completed our investigation of this case. No further action is required by you at this time. We have denied this claim. As stated in our User Agreement, PayPal’s Buyer Complaint Policy only applies to the shipment of goods, not to disputes about the attributes or quality of the goods received. We have noted your claim in the seller’s record. The seller’s account privileges will be limited if excessive complaints are received.”

In short, the PayPal User Agreement gives you (online merchant) an online license to rip off anyone. PayPal does not believe in quality or the satisfaction of their users. There’s only one reason for this lack of customer satisfaction and arrogance from PayPal. PayPal does NOT want to lose the transaction fee that they just made from the victim sending you the money.

Economically, it’s not feasible to service a complaint when they only made “1.9% to 2.9% + $0.30 USD” on the transaction from your victim. With volume, I’m confident that they can help one person get their money from you — the merchant. So the odds are your side this time.

Special Offer: IHOP or Dennys $250 Gift Card

Plus, when you think of the scale of this type of practice by PayPal, it’s in the millions of dollars. Clearly, ripping people off the Internet is a solid business model. If you can create a system that can do the same, I guarantee that you will become a dotcom millionaire too.

Visit this website to read more about why PayPal sucks: http://paypalsucks.com/

UPDATE: PayPal has updated it’s seller policy. Now it’s more difficult for sellers or merchants to get away with ripping people off. This update is a good thing because now buyers have more rights. Historically, PayPal has always leaned more towards the seller than the buyer. This update should’ve been implemented years ago, but sometimes profit may be more important than fair treatment.

Disclaimer: The opinions expressed by this author does not reflect the integrity of this website or the owner of Clay Media Group, LLC. This is purely for entertainment purposes. You are solely responsible for your actions should you choose to emulate the business models outlined in this article. PayPal is a registered trademark. All rights reserved.

Comments are closed.