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I assume this is to protect against chargebacks. If Mailpile were to empty their PayPal account and then buyers start requesting refunds for non-delivery of the
by 8ig8 13y ago
I assume this is to protect against chargebacks. If Mailpile were to empty their PayPal account and then buyers start requesting refunds for non-delivery of the described product, PayPal would be left holding the bag.
- nwh 13y agoWell not exactly. Recently I sold a bunch of hardware on eBay. Took photos of it being packaged, photos of it at the post office, added express shipping and a tracking number. The tracking number says delivered, so I withdrew the funds back to my bank account. Next thing I know, PayPal debited my account for the full amount because the buyer filed a non-delivered complaint. End story is, PayPal doesn't leave themselves with no options for recourse. (I'm still fighting that one)
- 8ig8 13y agoIn Mailpile's case, there must be a higher risk that their linked account doesn't have $100,000 for PayPal to back out. The same could be said for your situation, but I'm assuming the liability is lower due to the amount. Edit: That's not quite right since $100,000 represents a collective amount, not individual buyers demanding a refund.
- nwh 13y agoI certainly didn't have $250 in that account, which of course added a $50 overdraft fee. One would assume that they didn't spend all their money at once, so paypal would be able to suck back at least some of it.