The number one payment system on the internet right now is PayPal.
If you hope to do any kind of easy business payment then your best bet is to use PayPal to help facilitate the transaction.
But PayPal is also known to have their share of problems as well.
There are way too many fraud cases that have come up in the past couple of years when it comes to PayPal.
Cases where there is no way for the other person to seek resolution about an item or money that may have been stolen.
Black hat hackers have found many loopholes that they can use to get around the system.
If they really want to take your money and the item that you are selling, then they will figure out a way to get it.
One way that they have used PayPal to illegally get money from people is by using a stolen account.
They are able to do this by finding some way to get the credentials of an existing PayPal customer.
Once they have these credentials, they then use the money that is in the accounts to buy an item online, preferably digital.
When the sale is complete, they will take the goods and use it.
Meanwhile, the person whose account that it is will all of the sudden realize that someone is making purchases without their permission.
So they then follow up and cancel the orders with the credit card companies.
Now PayPal is forced to take back the money that they put into the sellers account.
So no matter if the money is truly stolen or not, the benefit of the doubt lies fully in the hands of the purchaser.
So now the hacker is somewhere having fun with your item and you are left holding the bag.
Avoiding The Problems
This is something that happens a lot but there are ways that you can avoid it.
Well, at the very least, avoid it as much as possible.
When you sell a virtual item over $500 on PayPal, make sure that you send a person a hard copy of the item as well.
A CD with the data sent through the mail where the person has to sign for it is more than enough.
This will help your case when you present it to PayPal.
There are always going to be ways that people can scam you using PayPal.
PayPal tries to help as much as they can but they try to make sure that they keep a hands off approach as much as possible.
The more systems that they put into the software to prevent this type of thing from happening, the more they become legally liable when it does.
Overall, PayPal is a pretty decent payment system but it does have a few users who don’t play nice.