Topic: NEVER EVER deal Bitcoins with PAYPAL (F&F too!) (Read 1148 times)

You need to provide extensive proof, sellers have a track record and usually their personal info + adresses linked to their accounts, - and paypal stems from Ebay and vice versa. (All these factors probably contribute to paypal being used as n#1.)
I imagine that there are numerous fraud systems in place from preventing that- asking documents/bank statements for large transactions, logging IP's, asking for signatures when receiving packages, etcetera.


I believe only if the payment is made through a credit card company. - he could tell the credit card company the payment was fraudulent, even after 6 months, and I believe that there's a chance some providers will reverse the transaction. Not sure though.

For high value and high risk transactions- that would be a good idea.
But one can also photoshop bank statements and other documents, so that still isn't waterproof.


You could probably open a dispute if it was for certain goods.


I'd also like to mention that it is against Paypal's TOS to trade Bitcoin -> Paypal, hence why there is barely any sellers' protection and vice versa.

If paypal is this bad, then why is paypal the number 1 option or only option for ppl who sell on ebay?  If that is case, couldn't lot of ppl just chargeback on products bought on ebay or that is not possible if seller make sure there is something is receipt that prevents this?  Imagine selling a computer or expensive electronic?  What about clothes?  Or what about cable wires or cheaper products?



Also ppl can chargeback more than 6 months later?  I heard 6 month was the max.



Also if you accept paypal from someone, wouldn't you need to trust this person close to 100%  I mean if you accept it from stranger, how would you know its even this person's actual paypal account and not a hacked account.  Is there anything that helps you with this?  Only thing i can think of is ask them for their passport and have them take a picture of themselves holding their passport?  The same with bank transfers.  Wouldn't you need someone to confirm its their bank account before you transact? 



But if you have them deposit cash in bank, that is safe as long as the banking day is closed right?  I heard a long time ago ppl would deposit cash in someones bank account, show them receipt, then go back to the bank and tell them they deposited into wrong bank account.  Is there anything to prevent this?



Because it seems its only wire transfer and cash deposit in bank and bank closes that day where you don't have to worry right?  I heard skrill, venmo and cashapp all are reversible.  But perfectmoney is as well?  Can you use that in the US?

There actually are a number of scammers here in cryptocurrency markets. Scammers always tend to find newer ways to scam users. PayPal transactions were a boost for all those scammers. Even I went through such people who were selling and buying bitcoins with PayPal but none of them were trustworthy even though they were dealing with a larger amount.

These kind of trades usually seems riskier because the people/scammers who use PayPal to transact such deals might not even use their own personal PayPal accounts but those accounts which are hacked or sold in the black markets so it would never allow PayPal to reverse your funds again from such persons. This is the major reason behind why I stay away from PayPal trades.

If this is the case with paypal than how could we even deal with trusted people? Because as far as I know, paypal implies chargeback even after few months passed so it would never actually get to know us about which dealer has asked for a chargeback. Paypal should sooner find out some remedy for this bug as it is really eating a lot of profits from the traders.

Paypal is a better medium to directly purchase bitcoins with our fiat currency and we could even directly transfer from our bank accounts but this case with paypal might make paypal loose a number of good traders. Paypal is a centralized platform so there would be questions to be asked ahead if they charge a police FIR.

Its necessarily not a problem of all paypal transaction if the payment recipients take the require protection steps by trading with trusted users.


It clearly his mistakes and i don't need him to ask the community about the PayPal transaction reverse policy cause it is well stated in the PayPal rules of restrictions on transfers or withdrawals from PayPal accounts. I think the problem is people being lazy to read and understand what to do which was also the precise reason why some newbies are slaughtered through their crypto investment.

you should not blame Paypal mate because first it is your mistake not researching r asking here the community if this transaction is safe.
because for many threads here specially in service it is more often discussed to stay away from Paypal/bitcoin or cryptp i mean because this is irreversible so all transaction made can be scammed by the other involve.make this as learning mate.

This is happening commonly with the people. With the chargeback policy scammers are the one who benefit. Not only with cryptocurrency exchange, but this has happened with other services too. Same issue I encountered with the banking system while selling bitcoin. Later I was issued a notice to send back the amount from the banking sector stating a police complaint has been raised against me. Somehow I released the fund and got out of the issue.

PayPal can be trusted to make transactions with trusted people. Op could've made the deal with the trusted traders from our forum.

This is the issue with all Paypal transactions. The buyer is virtually always favored when it comes to disputes and if there are reversals through credit card companies, the buyer is unequivocally favored and money is taken directly from Paypal which means Paypal takes away the balance from your account. This is the reason why you should never deal virtual goods, let alone Bitcoin, through Paypal because in the event of a dispute, Paypal asks for a tracking number to insure a product was delivered to a buyer. If you cannot supply any sort of tracking number as is with digital purchases, you're shit out of luck.

If you look at Venmo, Skrill, CashApp, all reversible garbage that operate on the same mechanics of Paypal.

While paypal's refund feature is really the amazing one, it has also huge disadvantage and that's what you say. Not only personal transactions but a lot of ebay buyers say lies including: I haven't received item, it's damaged, it's doesn't have original smell (fragrance) and etc. What can we do? Nothing but to return money in most cases. Paypal is the most acceptable payment for buyers and for that reason sellers have to agree with that but why do you hang on your customer sellers?
OP pp/btc deal isn't easy, you have to trust user or if he/she isn't trustworthy, then keep in mind that your money isn't your for a while.

i dont get your other points so i just snip out your other coments  . what i only understand is this  .  i agree that paypal is scary because unlike crypto , paypal is reversible  . you can hold the funds  , which can easily be used for scamming  . not just that , but your infos can also be seen when you use paypal  . this is the warning that i see actually before . they say never trade a crypto using paypal not unless if there is an escrow or the person is really trusted  .

Use your local wallet or any online wallet that supports your local currency and the crypto you want to trade. There are a lot of ways to sell btc to a complete stranger and banking / credit card isn't that preferable nowadays, due to the fact that one of you must pay first and both would be hard to have or gain trust on sending first. Better send Bitcoins through online wallet, like here in the Philippines whereas you can buy and sell Bitcoins through a single app. If you also use coinbase which supports USD and BTC, you wouldn't worry with those kind of tragedies happened to the OP.

Remember, transacting online alone is risky.

Paypal is one thing but I am really scared for people who want to deal with even cash at this point, I mean we are talking about thousands of dollars here and you may be in public when you meet someone for cash trading however if you are dealing with anything around 1 btc and you do not live in a huge nation (or even if you do) its 9 thousand dollars, people would seriously consider going to jail over that kind of money almost anywhere in the world.

What if one day I meet up with someone for bitcoin trading in cash, he shows me the money, I send him the btc, he just takes off? Not like I would be able to keep him grounded until cops show up, I would probably just following him like a dog barks at cars, not knowing what to do when I catch him, vice versa for giving cash and waiting for btc.

indeed I hear paypal does not work with any bitcoin and cryptocurrency platforms so I suggest when you make any investment you don't use paypal but maybe you can use the cryptocurrency platform to cryptocurrency so you should exchange your money for cryptocurrency first, whereas in the country I already have an exchange place that has been recognized by the government to exchange from local money to cryptocurrency money so it will be easier if the investment uses cryptocurrency.

Transaction using bitcoin and PayPal have different method where using PayPal you can take back your money although have sent to the other, I have many experience with several years ago using PayPal as payment transaction joining many invest online site, after receive payment some project dispute my transaction and I have lost my receive payment.

The perceived safety of Paypal FF is honestly blowing my mind.

It should come as no surprise to anyone that Paypal payments, whether or not it is sent as a friends and family payment, are reversible by every means. And with paypal's track record, it is very likely that they will always side with the buyer side.

Which leaves you, the seller, significantly out of pocket if people do chargeback. And given the history of Paypal, it is a favourite of those who choose to be unscrupulous.

This is not the first case. A lot of people have already been experienced such problems where paypal asks for the charge-back. The worst case once was about the charge-back which took place after more than 6 months so you would never know if you have made a correct deal with the appropriate person in terms of paypal. PayPal transactions should immediately be stopped for buying bitcoins as bitcoins are not even legal so we cannot even file a case in order to reject the charge-back.

We have to forcefully pay the charge-back or the bank might take some legal action against us. How much was the amount? This would never allow you to trade bitcoins with paypal again so treat it as a lesson.

It applies not only to dealing with cryptocurrencies but any other virtual goods, including such thing like World of Warcraft account. You may face chargeback in each case where you have no paper proof of shipping.

I agree. I wouldn't recommend dealing with paypal if you can avoid using it. In some cases you don't have a choice though, since a lot of westerners use it.

You can actually use any other payment method that does not charge-back. Wire transfer, Skrill, Perfect money, etc would be suitable for you in this case if you want to buy bitcoins directly with your fiat money in your bank. Paypal is no longer safer to trade bitcoins as the problem which OP faced, might have to be faced by any of us if we trade with paypal again.

Paypal is good for centralized transactions as such similar problems would be easily solved if the transactions are in the centralized field but I doubt, they would never be resolved if they are in the decentralized field so it is always better for us to strictly avoid dealing with paypal.

So what is best way to sell btc to strangers then that is safe?  Is cash deposit at bank and waiting for next business day good enough?  What about a bank transfer like zelle?  Or bank wire?