Card Lost in the Mail

[Archive]

Posted By: warshawlaw

I purchased a card online via ebay paying through paypal with my Citibank credit card. The card never arrived. The seller claimed that the card was taken to the post office and handed over and produced a delivery confirmation receipt for...something. The package was not insured (the seller made insurance optional and I opted not to pay 4% to insure a $50 card). When the card did not arrive, I initiate a charge-back with Citibank. My protest was sustained and the charge was reversed.

Many here appear to be under the misconception that private terms of sale trump credit card rules. They don't. If you as a merchant (even an "amateur" merchant using Paypal) accept a credit card charge as payment for an item, you accept the terms of the credit card company doing business with you, and that may include your being responsible for lost merchandise if the credit card company makes it so.

I'd also advise anyone doing business as a buyer thru paypal to always use a credit card for substantial purchases. Paypal is bound by the credit card issuers' rules too. Its administration of complaints is for crap; the credit card issuers are much, much better and Paypal is bound to accept their decision on charge-backs.

There is nothing wrong per se with shifting risk to the buyer, but if you want to shift the risk of loss to the buyer in a way that will stick, refuse to accept payment except via check, MO or cash.