You think that's bad...be VERY CAREFUL that you follow every detail of their TOS. OR you'll risk one of these emails:
**********************************************************
Subj: PayPal Account Review
Date: 10/6/2000 6:52:23 PM Eastern Daylight Time
From:
service@paypal.com (PayPal Customer Service)
Reply-to:
service@paypal.com (PayPal Customer Service)
To:
Ggeorge2000@aol.com
Dear Mr. George,
In order to retain the funds from a fraudulent payment that you
received from XXXXXXXXXX, PayPal must withhold $488. from
your PayPal account balance. However, the funds currently in your
PayPal account are insufficient to cover the full amount of
fraudulent funds. We have deducted $00.00 from your current
Paypal Account Balance and would need the remaining $488.00
returned to your Paypal account.
Please send the necessary amount to us via check, money order, or
by an electronic transfer to your PayPal account. If you are
paying by check or money order, please make it payable to
PayPal/X.com, and send it to: PayPal/X.com, PO Box 50185, Palo
Alto, CA 94303. In the meantime, your account may be restricted
if you are not a verified seller.
Please note that the withholding of funds is in accordance with
our Terms of Use, Section IV, Paragraph 3:
"X.com agrees to indemnify sellers for charge back liability
resulting from buyer's fraudulent use of a stolen credit card
and/or false claims of non-shipment of goods for purchases made
through the Service for up to $5,000 per year when the following
conditions are met:
a) The seller is Verified;
b) The seller can provide reasonable proof-of-delivery which can
be tracked online. (Most U.S. carrier companies offer this
service, including the U.S. Postal Service.);
c) The seller accepted payment from only one PayPal account for
the purchase. (Multiple payments from different accounts for a
single item are a fraud indicator. Sellers should not accept such
payments.);
d) The seller does not ship internationally (when X.com releases
international payments (coming soon), this rule will be replaced
with a list of approved countries)."
If you feel you have met all the above conditions, please send
all information regarding this transaction to
chargebackappeal@paypal.com.
In the future, you can protect yourself against fraudulent buyers
by following the conditions of our Seller Protection Guarantee.
For full details, please visit our Terms of Service at:
http://www.paypal.x.com/cgi-bin/webscr?cmd=p/gen/terms-outside
Sincerely,
PayPal Account Review Department
PayPal -- A Service of X.com
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Basically they are saying that if I didn't quickly pull out my cash, they'd keep it. Be careful. Get verified.