Author Topic: Before you buy or sell Litecoin with PayPal/CC - Be Smart  (Read 25357 times)

Offline Carnth

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Before you buy or sell Litecoin with PayPal/CC - Be Smart
« on: April 04, 2013, 11:34:34 PM »
Be very careful when buying or selling Litecoin with reversible payments like PayPal or credit cards.
You need to trust that the person sending the payment won't file a chargeback.
Sending Litecoin to some one is irreversible. The only way to get Litecoin back is if that person sends it back to you.
A PayPal or credit card payment can be reversed. One complaint is usually all it takes and then the PayPal or credit card company gives the money back.

Example:

The scammer sends payment via PayPal.  The other person sends LTC. Everything is good so far.

If they wanted to scam, here's how they do it:

The next day, the scammer files a complaint to PayPal against the payment you made. PayPal reverses the charge, the scammer gets their money back.
Now the scammer has the LTC and the money.

This is why the buyer must trust the seller AND the seller must also trust the buyer is these situations.

Protect yourself from scams. Be smart.
« Last Edit: April 08, 2013, 07:21:06 PM by Carnth »

Offline AeyKay

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Re: Before you buy or sell Litecoin with PayPal/CC - Be Smart
« Reply #1 on: April 08, 2013, 04:46:26 AM »
I think if you "gift" it they can't send it back can they? It was what I've been told... clarification appreciated

Offline isaiaa

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Re: Before you buy or sell Litecoin with PayPal/CC - Be Smart
« Reply #2 on: April 08, 2013, 05:44:32 AM »
I think if you "gift" it they can't send it back can they? It was what I've been told... clarification appreciated

I insist that the gift option is still reclaimable in certain instances. Somehow, the casual stuff to deal with on PP transacs is the 72-hour wait period and/or with the use of a Middle Man.

I just, personally hate reversible payments that I solely prefer LR over them.

Have a good one guys.

Offline SBarr

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Re: Before you buy or sell Litecoin with PayPal/CC - Be Smart
« Reply #3 on: April 08, 2013, 06:47:39 AM »
Hmm, my usual method for selling through paypal is only accepting gift payments. I can't say it's impossible to reverse, but no one has ever tried to. I usually get paid half up front, deliver the full amount in coins and then get the second half. That way there is trust needed on both sides of the transaction. An escrow service of some kind could be nice though.  :)

Offline Someguy123

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Re: Before you buy or sell Litecoin with PayPal/CC - Be Smart
« Reply #4 on: April 08, 2013, 06:49:03 PM »
I insist that the gift option is still reclaimable in certain instances. Somehow, the casual stuff to deal with on PP transacs is the 72-hour wait period and/or with the use of a Middle Man.

I just, personally hate reversible payments that I solely prefer LR over them.

Have a good one guys.
It's reversible if your account gets suspended - A few years back my paypal got suspended, which also meant any gift payments I sent got reversed too.

Offline Guy

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Re: Before you buy or sell Litecoin with PayPal/CC - Be Smart
« Reply #5 on: April 09, 2013, 11:02:07 PM »
the best way to be safe when selling is to create an invoice from your paypal account, requesting money
put in the terms and conditions that chargebacks are not allowed and either returns
sale concludes once coins pushed/transferred
then it's in black and white
writes as much as needed explaining amount being paid and what is being got in return

this is similar to domain transaction as paypal still view as non-tanginle goods and with cryptocurrencies you can't even track where it went
whereas domains can at least be clawed back through a registry

have done this way for many years selling domains on smaller sales, sub 1k
never any problems

hope this helps

bigger sales use escrow.com


i am also looking to buy through paypal, would be happy to do this way
also have verified business account
another key thing, buyer MUST be verified minimum

ask for them to send a screenshot of their account

Offline chungenhung

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Re: Before you buy or sell Litecoin with PayPal/CC - Be Smart
« Reply #6 on: April 18, 2013, 04:37:33 AM »
I insist that the gift option is still reclaimable in certain instances. Somehow, the casual stuff to deal with on PP transacs is the 72-hour wait period and/or with the use of a Middle Man.

I just, personally hate reversible payments that I solely prefer LR over them.

Have a good one guys.
It's reversible if your account gets suspended - A few years back my paypal got suspended, which also meant any gift payments I sent got reversed too.
Agreed. Paypal can suspend your account at will, when they see you've been receiving too many gift payments. Ask me how I know...

Offline chungenhung

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Re: Before you buy or sell Litecoin with PayPal/CC - Be Smart
« Reply #7 on: April 18, 2013, 04:39:08 AM »
the best way to be safe when selling is to create an invoice from your paypal account, requesting money
put in the terms and conditions that chargebacks are not allowed and either returns
sale concludes once coins pushed/transferred
then it's in black and white
writes as much as needed explaining amount being paid and what is being got in return

this is similar to domain transaction as paypal still view as non-tanginle goods and with cryptocurrencies you can't even track where it went
whereas domains can at least be clawed back through a registry

have done this way for many years selling domains on smaller sales, sub 1k
never any problems

hope this helps

bigger sales use escrow.com


i am also looking to buy through paypal, would be happy to do this way
also have verified business account
another key thing, buyer MUST be verified minimum

ask for them to send a screenshot of their account
That doesn't mean jack.
Paypal can do whatever they want, whenever they want. They set the rules not you. They can break their own rules, you can't.

Offline LiteBurner

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Re: Before you buy or sell Litecoin with PayPal/CC - Be Smart
« Reply #8 on: May 03, 2013, 10:19:59 PM »
Yeah, I remember when Gaming Open Market, a great service for gaming money which was basically a hobby run by two guys, closed down after a scammer did a $2,000 paypal chargeback scam on them.

What about Moneybookers/Skrill?  I've been using them for years, solid company, and no chargebacks on skrill payments, but almost no one uses them.

Offline Madstudios30620

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Re: Before you buy or sell Litecoin with PayPal/CC - Be Smart
« Reply #9 on: June 15, 2013, 11:35:15 AM »
Mod edit:  Do not post advertisements in this thread.
« Last Edit: June 15, 2013, 03:04:23 PM by Carnth »

Offline Sportman

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Re: Before you buy or sell Litecoin with PayPal/CC - Be Smart
« Reply #10 on: June 29, 2013, 08:27:34 AM »
Yeah, I remember when Gaming Open Market, a great service for gaming money which was basically a hobby run by two guys, closed down after a scammer did a $2,000 paypal chargeback scam on them.

What about Moneybookers/Skrill?  I've been using them for years, solid company, and no chargebacks on skrill payments, but almost no one uses them.
Skrill almost always never get involved in disputes between customers and traders, but I know from experience money can be charged back on there. One thing is credit card fraud, if the person paid you using a stolen card or stolen account skrill would have to reverse the charge I believe. But overall it is a safer way to trade than paypal, last time I checked you can pay using your credit card instantly, and the person will have to go through some serious steps to scam you/reverse their money. Just tell the person to quickly register and pay using that.

About paypal gifts, I think they only exist for canadian paypals and will probably get removed soon. The easiest way for someone to win a chargeback is to log onto their paypal via a VPN and send the money, then they can dispute it later saying it was unauthorised (pretend someone stole their account and did it).

Offline superlite

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Re: Before you buy or sell Litecoin with PayPal/CC - Be Smart
« Reply #11 on: July 09, 2013, 11:19:42 PM »
Just an idea:

If you sell something intangible for the primary sale, with litecoins as the secondary, but included "product", the person would need to claim that the item was not "as described".

I once made a web site and delivered it. The user ended up disputing it at Paypal after the payment. Because I could prove that I had made it and delivered it, I did not have to refund anything.

If sending a file, a photo, or whatever with litecoin included as a secondary item, the dispute will (probably) remain under the first item.

Offline HauntingShade

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Re: Before you buy or sell Litecoin with PayPal/CC - Be Smart
« Reply #12 on: August 12, 2013, 11:48:05 PM »
If sending a file, a photo, or whatever with litecoin included as a secondary item, the dispute will (probably) remain under the first item.
That particular file has to have a certain value. A unique photo of your face is probably not worth $300 or more...  ;)

Offline buddyltc

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Re: Before you buy or sell Litecoin with PayPal/CC - Be Smart
« Reply #13 on: November 09, 2013, 03:43:45 AM »
DO not trust paypal, there customers lol jk

or visa or mastercard debit or credit!!!

infact who wants cash, i want coins


Offline richtrix

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Re: Before you buy or sell Litecoin with PayPal/CC - Be Smart
« Reply #14 on: November 13, 2013, 05:23:47 PM »
I sold two Bitcoins on eBay last week in two separate auctions. Both auctions paid immediately. They both turned out to be hacked paypal accounts. Luckily paypal was on top of it for the first one and I'd only sent him .01 BTC to verify his address before I got the fraud notice. The second I sold I was super careful and implemented a 24 hr. payout policy. Emailed and called the account holder as per his paypal email and ebay phone number. He had no idea what I was talking about so both transactions were cancelled. I'll never sell BTC on eBay again. I consider .01 BTC to be a pretty cheap lesson as it could have been much worse.