Niche scam you should be aware of... nothing you can do to stop it...
Summary: imac7065 described a scam involving credit card and mail fraud on eBay, where buyers use a freight forwarding service and then file chargebacks claiming unauthorized transactions. Despite eBay's knowing it's fraud, they are unable to act until the bank makes a decision, which can take months, leaving sellers without their money. kensgiftshop shared that banks sometimes dispute all transactions around a fraudulent one, and albertabrightalberta pointed out eBay's protection policy. However, imac7065 emphasized that seller protection is not helpful in preventing funds from being held during bank disputes.
Running into a fun credit card / mail fraud scam that is helped by the ebay platform....
Buyer buys items, but has them shipped to 3rd party freight forwarding service
After item is delivered to address on payment (with confirmed tracking delivery) Buyer files chargeback with bank claiming they never authorized payment, uses 3rd party address as "proof" of ID theft
Ebay tells you there's nothing they can do, that they must obey bank demands
Why this is maddeningly frustrating....
1) Buyer's void their money back guarantee when they use a 3rd party to accept their items. The term "freight forwarding" comes directly from the money back guarantee ToS page (see below image)
2) Even though ebay can 100% prove this is fraud, they will tell you there is nothing they can do until bank makes a decision (could take up to 6 months) ... they 100% know you're a victim, but do nothing to help you until after your money has been tied up for weeks / months
3) When the CC scam is successful because buyer is international and address was domestic.... ebay will pay out to the thief, charge you $20 per chargeback (4 and counting in my case) then force you to file an appeal to get your money back... even though they've known since the moment the case was filed it was fraud.
Fun times
PS... before anyone says "but you'll get your money back".. give me a few hundred dollars of yours to hold until Christmas... I'll give it back before the New Year I promise.
albertabrightalberta
·1 month ago · Edited@imac7065
If you ship to the address as directed by ebay on the order and tracking shows delivery, you are protected against unauthorized use chargebacks.
Here's the policy for payment dispute claims:
https://www.ebay.com/help/policies/selling-policies/payment-dispute-seller-protections?id=5293
EDIT: @imac7065
The policy you've pointed out is for INR claims -- a different policy and a different claim than your buyer submitted.
imac7065
OP1 month ago · Editedto clarify for you... using freight forwarding 100% voids their buyer protections.. not just INR, they can't do INAD, or make any other claim against the seller (because they didn't receive the item) Course ebay will let them open these cases they shouldn't be able to, and make you the seller report their violations before acting, but the rule remains there... and yes.. I know I'm "protected" it's the not having my money for months even though ebay knows (and has told me multiple times already) that this is a scam
imac7065
OP1 month agoUpdate that's even more frustrating... the buyer just messaged me saying "I didn't open these, the bank must have when they froze my card for fraudulent use"..... AHHH!!! lol
kensgiftshop
·1 month agoThere's been a few other post where the buyer says they did dispute a transaction, not on Ebay, but their bank disputed all transactions that happened around the same time, even the legit ones.
imac7065
OP1 month agothey did this separate times on separate days... it's 100% a scam
janet9988
·1 month agoAre you saying that ebay seller protection does not cover you ( the seller) for this?
imac7065
OP1 month agoIt should (knowing ebay they'll try to find a reason not to)... but no... what I'm saying is ebay will not help you with the tied up funds... they won't release your money (possibly for months) because a bank you have nothing to do with told them to hold them from you. No matter how black and white it is.. they will hold your money and you're SOL