# Forum > News > Trade Support > Scam Reports >  BEWARE of paypal GIFT chargeback

## raijinonlinegaming

Just want to share this info i found on one of the forums.

A gold buyer in Guild wars 2 did this to me last week. He paid me in Paypal as gift then after receiving his gold he chargeback in credit card and poof! he got his money back. and Paypal did nothing even if i have proofs.


- Many of you know that sending paypal GIFT payments offer little to no buyer protection.

HOWEVER, there is a loophole where PayPal gift can be used to defraud THE SELLER.

I hesitate to share this info, but I think people should know and protect themselves.

Here's the scenario:

The seller asks for the funds to be paid as GIFT, thinking this offers protection for the seller.
The buyer sends a PayPal gift using a credit card by clicking on the pay the associated PayPal fees option. (I am paraphrasing the exact option here.)
The recipient of the payment (seller) receives the GIFT payment and the full amount shows up in their account as a gift.
Everything looks okay so the seller ships the item.
Hours, Days or weeks later, the fraudster buyer will issue a chargeback with their credit card company by claiming that their credit card was stolen, etc. The lies are easy.
Credit card company will issue a chargeback, and in response, Paypal will hold the associated funds--which are now in the seller's account.
Because this was a GIFT transaction, as far as Paypal is concerned, there was no sale or exchange of goods.
Because there was no sale, the seller cannot use shipment confirmation to argue a legitimate transaction. Evidence of shipment means nothing when there was no official exchange of goods.*
Seller's funds are held and it will reversed to buyer and buyer gets a free items.

From now on i will not trust PayPal!!

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## xjsnowx

Is there a way to tell if credit card payment cause usually I would never ever accept credit card payment, hell i dont even accept them on ebay.

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## Whinkerton

Yeah, unfortuatnely PayPal is always protecting a scammer when it comes about payments for virtual goods  :Frown:  Also sending money as gift doens't protect against scamm at all  :Frown:  

But there is a hope, another payment method: SKRILL (www.skrill.com), much chepaer than PayPal and chargeback free system + more and more users accept it even here on forum  :Smile: ! Check it out and stay safe :Smile: !

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## joeclicker

> Also sending money as gift doens't protect against scamm at all


I agree with this. scammers open dispute in unauthorized payment for gift and paypal dont check IP address. A guy bought 250 gold from me in gift and after a day he dispute in unauthorized payment and he won the next day.

thanks for opening this thread.

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## joeclicker

> Is there a way to tell if credit card payment cause usually I would never ever accept credit card payment, hell i dont even accept them on ebay.


I think you cannot tell if its credit card payment or a paypal balance.

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## raijinonlinegaming

Update: I found out in other forums that there are no sellers protection when it comes to virtual or digital goods. It doesn't matter if you receive gift or goods and services.

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## Induce

It ruins your credit score to chargeback though.

Unless it's a significant amount they're being very stupid. Jokes on them to be honest. I've got an open case with Snawmarket as he scammed me and I should be able to win it because he can't provide proof of delivery.

Problem with skrill is you have to upload balance and that takes a few days. It's not instant like paypal. For me atleast

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## karlo062990

This happen to my friend. The buyer charge back 15 days after he receives the items... and guess what? Paypal left him with negative balance. If you are a Paypal user, 100% you will NOT win a credit card charge back.

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## Alex73

> This happen to my friend. The buyer charge back 15 days after he receives the items... and guess what? Paypal left him with negative balance. If you are a Paypal user, 100% you will NOT win a credit card charge back.


Yes. PayPAl gift is a blade with too cutting edges. Had a personal experience of a fraud with payment method. Charged my money backhttps://youtu.be/aRD7hduCEaY

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## D3Boost

http://www.ownedcore.com/forums/mmo-...ml#post3382651

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## atoj

wrong place

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## MistiServices

Paypal now covers digital goods and services,just take money via invoice,and u are good to go,tho credit card chargebacks are not under paypal control.

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## 47vzv

what if the buyer bought multiple services i had not known about this scam till recently. he sent the money as gift. he has bought services from me atleast 8 times it's just like you said i thought sending as gift would be better. i have records of the guy receiving the service. i'm just a little scared he might just chargeback out of the blue. i'm going to start doing invoices now, but im still courious

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## jeanericblass

well i can assure everyone that paypal is the best way for reducing any sort of scam so i will suggest you guys that always prefer paypal for any online transaction. Because i have to face a chargeback issue in fact i received a wrong product from the buyer and another time i didn't receive anything during duration and also not get any shipping tracking ID but during all these situations paypal investigate properly and when they felt buyers guilty they provide my money back.

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