I recently added PayPal as a payment method to one of my sites (in addition to my current credit card processing company) but am getting a lot of notices of "Payment on Hold" from PayPal. Well they take the money back in a lot of cases and it's getting annoying.

Does anyone have a good fraud prevention strategy they could share for PayPal?

Have you tried contacting Paypal about this? I used to sell on ebay and when they held payment from me when they were waiting for it to clear on the other end. It was annoying, and it takes forever, but they look into it thoroughly so that you don't get ripped off though.

The only other way that I know of that they hold payment for is when someone buys something from you and they change their mind and revoke the payment. I really think the best thing to do is to contact paypal and find out what's available for you.

I have contacted PayPal and am using every tool they have available but the reality is that they don't do a bang up job with fraud prevention and actualy seem to be a magnet for fraud.

I guess what I am looking for is a better fraud screening tool that I can use from a thrid party.

I'm glad to see this...I wondered whether PayPal was secure. I wanted to sign up for eBay, but now I don't know...

I've had great experience with paypal, the only thing I had to do was to not allow check payments! And except credit cards only...

The times I would allow paypal, I would let the customer know that they would not receive their product until after funds have cleared. That is the best way to protect yourself, because paypal tries but there will always be people figuring out new ways to get by.

Jasmine

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I use Paypal as an Ebay seller for the past 5 years. And so far have not had any problems. I have had to wait for payment to clear on a couple of occasions, but so far I've been lucky.

Yes, I agree with you.

Don't send out goods unless the payment is really cleared.
You may check carefully in order to prevent the loss.

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