PayPal is one of our most popular payment methods. It is widely used and a simple process for users, also Paypal has a lot of users so it is a convenient payment method to sell your bitcoin for as you can very easily spend and transfer your PayPal balance. However because you are dealing with other people on our marketplace you need to do your own due diligence as some people may want to maliciously scam you out of your money.
With PayPal it is relatively easy to ask for a chargeback and they will always side with the buyer first. If a chargeback occurs you would need to provide evidence that the trade was agreed upon and the buyer did receive the bitcoin. If you do get a chargeback, report it to our support team and provide evidence of the chargeback. To do this please go back to the trade, click report scam and send our team screenshots of the chargeback. Upon doing this our moderators will investigate, ban the scammer and send you an email sharing the info of the user. This email + trade receipt can be provided to PayPal to dispute the chargeback. Bare in mind that if the transaction was done with a stolen credit card, PayPal may not refund the chargeback.
There are some precautionary steps you can take to prevent this:
Ask many layers of verification from the user. The key here is to identify whether this account truly belongs to the buyer. Here are some tactics our top bitcoin sellers use:
- Ask for a photo of the users ID
- Ask for a screenshot proving that the PayPal account is verified. The name should match the one on the users ID
- Ask for proof that the payment is done with PayPal balance rather than a credit card linked to the account if with a linked card the name on card, ID and PayPal account need to match
- Ask for a selfie with the ID
- A screenshot of billing address and phone number of their PayPal for payment security
The more verification you ask the buyer the less likely it is that you will get chargebacks however also more people are likely to cancel the trade not wanting to provide these details. This doesn’t automatically mean that the user is trying to scam you, also keep in mind that sharing personal information makes people anxious.
If you feel uncomfortable at any time or feel that the user is trying to rush you through the trade it is advisable to refuse the trade and start a dispute. Telling sellers they are in a rush is what scammers do to not give you all the requirements you need and this you should be suspicious of.
If you have any more questions on this please contact our support through the live chat or via email [email protected]
If you sell bitcoin for PayPal and have some more useful tips for others and ways how we can improve our service, please do let us know!