The Ebay/Paypal USPS intercept scam

Introduction

I’ve been selling on Ebay now for a looooong time and this was the first time I’ve been scammed this way and wanted to write about it and how you could prevent it.  So I sold a Nintendo Switch to a buyer and used the Ebay shipping label and paid for it via Paypal (a different PP account – this could be important.)  I then shipped out the item and then a few days later, I get the Paypal chargeback.  Paypal then asked for proof of shipment, so I entered the USPS tracking number and thought I was golden since I’ve done this many times before.  A few days later, I lose the case!

 

Tracking

I’ve never lost a case like this before because to win chargebacks, you just need to show proof that you shipped it out. I then checked the tracking number on the USPS web site (start from the bottom):

As you can see it went from Seattle to NJ (where she was) and then on Nov 8 at 11:13AM, it got intercepted.  And that’s when it went to a dropshipper in Oregon.  The case was filed after Nov 8 by the way.  The scammer, who wasn’t the Ebay buyer, must have paid for USPS intercept since he knew the end buyer’s address and had it intercepted it to his dropshipper’s address.

 

How did I lose?

I did a bit of research on this.  You have to prove to Paypal that you shipped it to the person and not that you just shipped anything out.  Look at it from PP’s point of view – I could have entered in any USPS tracking number.  The problem is that Paypal doesn’t know the recipient of your shipment, which is RIDICULOUS since they know I used Ebay’s shipping label and paid for it.

 

Lessons Learned

A buddy had this happen too, and he told me he called Paypal and they made an exception for him.  I haven’t made that call yet since it’s my wife’s account.  Anyway, what could I have done to prevent this?  First, I should have paid for the label with the same Paypal address (for the record, my buddy did pay for his label via the same Paypal email.)  Secondly, in the case, I should have also uploaded a screenshot showing the tracking number and recipient info.  I was lazy and just typed in the tracking number.  I assumed it was a slam dunk and I’d win like in the past.

14 comments on “The Ebay/Paypal USPS intercept scam

  1. Aside from being famous for “shut down per day”, , maybe you can add an emphasis in fighting scams related to this miles and points earning hobby. You are such a smart guy and it seems you know most of their tricks. Everyone can learn a lot from you.

    1. scammers never file through ebay. it’s the person who got their act hacked who will dispute against paypal or cc.

    1. Usually if you pay for shipping with the same act, Paypal automatically recognizes you paid for the label via the ebay/paypal system. I’m assuming they didn’t catch it this time was because I paid with different accounts.

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