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In lugnet.market.services, Steve Chapple wrote:
> In lugnet.market.services, Chris Phillips wrote:
>
> > My guess as to what happened here is something like this: the Buyer on
> > that transaction most likely stole someone's credit card number and/or
> > identity, set up a PayPal account under false pretenses, bought a bunch
> > of stuff, and then took off when the fraudulent credit card charges were
> > noticed by the victim. Even the fact that the buyer left positive feedback
> > is not uncommon in fraud cases; the criminal usually does everything
> > possible to appear to be legitimate for as long as possible.
> >
> > Sure, PayPal {should} bear more responsibility to protect you from
> > counterfeit "verified" buyers, but they had a team of lawyers draft
> > their user agreement, and you sat there squinting at fifteen pages
> > of fine print...
>
> I think it is VERY likely that is what happened to the seller in this case -
> I'll post a confirmation if and when I get it. The main issue then becomes
> accepting PayPal (or other services?) payment by credit card. If a
> criminal uses a stolen VISA card to buy a computer from a store, VISA
> takes the loss (and passes it on to its other cardholders). If a criminal
> uses a stolen VISA card to buy LEGO from my Bricklink store, VISA
> should likewise cover it. How is it that PayPal can just appropriate the
> funds? Aren't they a merchant to VISA?
I believe, but am not sure, that Paypal is more like a processor than a
merchant. Or if not, they are somehow closely connected to a processor or bank.
I carry a Paypal branded MasterCard debit card. Paypal rebates 1.5 % of all
spending (when used as a credit card). That seems a lot more like a processor
ability than a merchant ability. The card is actually issued by Bank One IN via
an agreement with X.com, Inc. (now a PayPal subsidiary) If they were merely a
merchante they could not, in my view, rebate the processing fees they are
receiving when I use my debit card. (which is where the 1.5% is coming from,
they're not just giving money away...)
One can obtain a Paypal branded Visa charge card as well.
Hope that helps.
> If VISA is stuck covering the
> fraudulent purchase - which is what will happen if policies are applied
> uniformly - then PayPal is stealing from the seller's account, which is
> exactly what he's saying. If PayPal has worked out some special deal
> with the credit card companies where they don't cover purchases with
> stolen cards then why are the CC merchant fees being passed on???
> Accepting CC funded payment by PayPal is than an invitation for theft!
>
>
> SRC
> LUGNet#765
> http://capt-acap.org/SRC/
I think it useful that Steve brought this up but I tend not to give the original
story a great deal of credence. YMMV.
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