Chapter 7 Exercise 8

8. Research PayPal from the perspective of a vendor and briefly describe what happens if a consumer claims that they never made a purchase that has already been shipped.

The basic policy requires shipment of a physical item with package tracking. The presumption in any dispute is that the consumer is correct. The vendor has to prove that the order was placed and that the product was shipped and delivered to the specified address. Only “verified” customers and some shipments are eligible for “protection.” It is not clear who bears the cost if PayPal determines that fraud was involved by someone who stole a PayPal account. My guess is that PayPal almost never agrees to pay out, mostly leaning on the vendor, and maybe on the shipping company.