Scams are no new thing nowadays, especially when using digital payment services like PayPal to manage your finances.
While PayPal hasn't been the primary driver of scams, over 80% of Americans have reported being scammed through apps like PayPal, Venmo, Zelle, and others, and it is something to always be aware of.
Thankfully, PayPal has a robust system to counter most scams, especially when you don't receive what you paid for. If you're looking to get a refund after being scammed through PayPal, this guide contains just what you need.
Does PayPal Refund Money If Scammed?
Well, it depends on the motive of the transaction. Usually, when you make a transaction for goods and services, you'll get covered by PayPal's buyer protection program that lets you get a full refund (including shipping fees) in case the purchase doesn't go well. Like for example, you paid for concert tickets online, but have never received them.
However, if you got scammed on PayPal for sending money to another user, the chances of you receiving your money back will typically depend on when you report the issue to PayPal so they can put a hold on the funds in the receiver's account.
Unless you got scammed for goods and services on PayPal, there's not much guarantee to get your money back if scammed through any other method.
What's Covered By PayPal's Buyer Protection Program?
PayPal buyer protection happens to be one of the robust buyer protection programs out there, as it covers a good number of items as long as they were purchased from a merchant that accepts PayPal payments.
Typically, you'll get covered by the buyer protection program and get a refund if scammed if you describe your issue as:
- Item Not Received: In case you paid for an item but have never received it.
- Significantly Not as Described: If the item you received isn't exactly what was described by the seller.
When you report a fraudulent transaction made for goods and services, PayPal will put a hold on the funds in the seller's account until you both sort things out—I mean, you and the seller. And in case the seller doesn't respond to the claim, you'll get your full refund in not more than 30 days.
How to Get a Refund on PayPal if Scammed
If you were scammed for sending money to another PayPal user, you'll only expect that PayPal should quickly look into the issue, as soon as you report it—because any time wasted just benefits the scammer.
To even put more chances on your side, you can quickly report the transaction to your bank for them to take immediate action to secure your funds, if it's still possible.
And to make things even more complicated for the scammer in any future attempts, it's good that you report the fraudulent transaction to the Federal Trade Commission (FTC), just so no one else will get scammed in the future.
What if you were scammed by a PayPal-supported merchant when paying for goods and services? The process will be even more convenient for you as you have up to 180 days to file a claim, and you can rest assured that you'll receive your refund if you were actually scammed.
All you have to do is select the payment from your PayPal activity and report it to PayPal. At this stage, you'll be opening a dispute to claim your refund while describing the transaction as "Item Not Received" or "Significantly Not as Described," as I mentioned earlier.
Provide any evidence if required, just to weigh all the chances on your side, and you should get your refund if the seller is actually unable to legally counter the complaints.
How Long Does PayPal Refund Money if Scammed?
If you were scammed for goods and services, you should be able to get your refund within 30 days of the claim. However, if you got scammed on PayPal for sending money to friends, it is uncertain to get a refund, talkless of the time it will take for you to get the money back, as it might never come back in the worst of cases.
I Got Scammed on PayPal Friends and Family
PayPal friends and family is a way of sending personal payments to people you generally know and trust—and PayPal knows this, which is why they made this label (for trusted payments). So if you got scammed on PayPal friends and family, you'll have fewer to no chances of getting your money back.
Final Thoughts
Many scams are occurring nowadays when using digital payment services, but PayPal has a robust system to counter scams, especially if you have been scammed for goods and services.
You should be able to get your money back on PayPal if scammed for goods and services, as this one is covered by PayPal's buyer protection program. If you got scammed for sending money to other PayPal users, you won't be so lucky with getting a refund.
This guide compiles all possible ways to get a refund on PayPal if scammed, so you can know the best steps to take if you were recently scammed.