using pp/lr as payment processor

[is all mememememe with me]

a friend was just here with something to smoke and while we were booting he started questioning me about some kind of online selling scam or other. probably just dreaming if i know him but this is what he was going on about. he wasn't exactly forthcoming with all the details but he was asking about if he set up a website, sold items and used pp to accept payment, what would the implications be etc. i told him that the paypal account would probably have to be verified anyway using a bank or cc, but a vba would probably do.

i couldn't really tell him much about the money with regards to transferring it, cause i wasn't sure if it would work in the same way that it would thru fleabay. i told him that if you suddenly start selling items for too much thru eb then the account could get frozen. and it would likely be the same story thru a website payment. he asked how long the money stayed frozen, because he was sure that none of his customers would know they had been scammed for over 3 months. but i couldn't answer him as i haven't experience of it myself. i said it was possible that the money would be released after a certain amount of time if there was no complaint tho.


was i right to tell him this?

.

[SBTlauien]

I can't say for sure, but I've read that PayPal asks for two copies of identification before they'll release the funds.

I know that on Amazon, they'll freeze the account and make sure no complaints are filed and then they'll release the funds.

[Heavy Lifter]

How is it that the customer wouldn't know they'd been scammed until three months later? As soon as the first 'item not received' dispute comes through, the (newly created) PayPal account would already be perilously close to limitation. Then, if every order starts showing up as not received, expect permanent limitation after just a few transactions.

As for limitations that request ID documentation, this will usually only happen once a certain amount of $ pass through the account. In Australia, I think it's $1,000 but it can be sooner if they consider your items to ne risky. Regardless of when it happens, this is inevitable for every PayPal account, unless you dump it within one or two transactions (after having spent the funds of course).

[L33tz]

liberty reserve is very secure

[is all mememememe with me]

Originally Posted by SBTlauien

I can't say for sure, but I've read that PayPal asks for two copies of identification before they'll release the funds.

I know that on Amazon, they'll freeze the account and make sure no complaints are filed and then they'll release the funds.

can amazon be used as a third party payment processor tho? and what if the funds were just used to buy items straight out the pp account?

Originally Posted by Heavy Lifter

How is it that the customer wouldn't know they'd been scammed until three months later? As soon as the first 'item not received' dispute comes through, the (newly created) PayPal account would already be perilously close to limitation. Then, if every order starts showing up as not received, expect permanent limitation after just a few transactions.

that was the "that's the beauty of this scam' part that he wouldn't really elaborate on. but presuming he was right, would funds be unlocked or available to spend on ebay before the 3 month period was up? would the fact that they would not be ebay/pp customers, make any difference? would they care as much?

i seem to remember all i had to do to my pp was link to my bank and tell them how much they had deposited. or is it different on a merchant account? i thought anyone with a pp account could sell on ebay and have money sent to them. i guess a merchant account of some type could be needed to use pp as a third party payment system tho.

Originally Posted by L33tz

liberty reserve is very secure

do they work as a third party payment system that you can embed into your own site? i've never used it myself so am unable to advise on it at all.

[SBTlauien]

Originally Posted by is all mememememe with me

can amazon be used as a third party payment processor tho? and what if the funds were just used to buy items straight out the pp account?

It could be if your friend put a random item up for sale with a certain price, and then had another person buy the item for that price, but the item was really just there to create a transaction. But, obviously most people would see that as sketchy and wouldn't do it. They would pay Amazon with their card(Amazon doesn't take MoneyPaks) and then Amazon would deposit the money to your friends account after two weeks(Amazon changed there payment system at the beggining of this year - it's now on a rolling reserve for all new accounts, for a two week period). Amazon uses velocity limits though...you can PM me if your friend can use this info...

As far as just payments for services, legitly, I don't think Amazon would work.

Originally Posted by is all mememememe with me

that was the "that's the beauty of this scam' part that he wouldn't really elaborate on. but presuming he was right, would funds be unlocked or available to spend on ebay before the 3 month period was up? would the fact that they would not be ebay/pp customers, make any difference? would they care as much?

It sounds like one of those Craigslist scams to me. I'm trying to think of what could take three months though...

[temporaryuser]

Your friend needs to build up transaction history on paypal whether it is through ebay or not. The more the better. That it is what separates the shit and great pp/ebay scams. It's the difference between hundreds and tens of thousands.

I am not 100% sure but to have a pp merchant account you need at least a UK registered business and UK BUSINESS bank account.

If it is in the UK you can't do it with a VBA you need a real UK bank. If the account is in the US you can buy ready made packages from many legit sites.