I used the PayPal resolution center in late 2008 after buying a coin from a seller in the U.S. I thought I was buying a genuine 1763 Northumberland shilling (because I paid a genuine price for it!), but I subsequently found out the coin was a fake from China (that's where the seller obtained it). I was lucky because I started the resolution process on the 45th day after the auction closed, and PayPal will only allow the process to be initiated in the first 45 days. I gathered all the facts of the case and presented them to PayPal and the seller. The guy did not respond, so I elevated the case to a claim after 4 days of silence. PayPal told me to return the coin to the seller and provide the tracking information within 10 days. I did this and my payment was refunded by PayPal in its entirety. I don't know if the seller cooperated with PayPal. I asked for $355, the hammer price of the auction, but PayPal gave me $367, the total with shipping. The seller continued to deny that the coin is fake, even though the person in China from whom he got it sold 3 identical pieces in a 3-4 month span. Those of you who know about 1763 shillings know that they are scarce, and for someone in China to have 3 of them is preposterous, especially since it is now widely known that China is actively copying coins from many other countries. As part of my case presented to PayPal, I gave them a link to a website that shows pictures of the Chinese counterfeiting factories.

I would never sell an unmarked counterfeit coin unless I stated up-front that the coin is counterfeit. Strictly speaking, it's not even kosher to do that. Anyhow, I am happy with the outcome of my PayPal case, but I have to wonder if I was not given preferential treatment because I was the buyer. The decision handed down by PayPal seemed quite arbitrary. Don't expect PayPal to explain how they arrive at their verdicts. There was no delay in receiving the funds, so I can't say if PayPal took funds out of the seller's account or if they put him in the "red" like they did to me once several years ago when I had a payment reversed and I was the unlucky seller. I guess it all depends on circumstances. The seller of the 1763 shilling is a legitimate seller, not a con artist who was looking to make a sale and run away with my money. He may have made a mistake in selling the fake coin as real or perhaps it was deliberate. Who knows? But I am happy with the resolution process as it exists because we are seeing an increase in traffic of fake coins and other collectibles. The original sale took place on eBay, but I have read complaints by eBid users showing that the problem of fake merchandise is cropping up here too. We need strong buyer protection and I think PayPal provides it.

So the moral of the story is this: no matter what a seller says, make sure you file a claim with PayPal before 45 days have lapsed since the auction closed. A seller who makes excuses for not delivering the goods in that time frame is jerking you around. There are no valid excuses for not having the merchandise when it is offered for sale.

Cheers,
Mark