Self-Defense For EBay Buyers

Stephanie Marhefka of Manhattan bought a desk on eBay that wasn't as promised. She never recovered her money. (By Helayne Seidman For The Washington Post)

Second, pay PayPal with a major credit card or, depending on your bank's policy, a debit card so you can have the issuing bank investigate claims of wrongdoing. For example, if you report a problem to Visa, the company will do what is called a "chargeback," said Visa USA executive Niki Manby. That means it will remove the charge in question from your credit card -- and, in Visa's case, from your debit card -- while it investigates your claim with PayPal.

If you prefer not to rely on PayPal, insist at least on using a credit card. Again, that will allow you to request a chargeback. Be suspicious of any vendor who won't use PayPal or accept a credit card and "wants a check or money order," England said.

Should you suspect that you have been scammed, there are several steps you can take.

If you used PayPal, fill out the dispute form on the eBay site, which can be found by clicking on the "Security and Resolution Center" button at the bottom of the eBay home page. Follow the instructions, including those asking the buyer to contact the seller to try to work things out. You have to do that, in fact, before you can elevate your "dispute" into a claim, where you are essentially applying for monetary reimbursement from PayPal.

PayPal offers two reimbursement programs. One will reimburse a buyer up to $175 for general purchases, and another refunds buyers up to $1,000 if they bought from a seller who met certain eBay criteria for trustworthiness. In going through the process, there are many deadlines to meet and exceptions to watch. "Buyers have to know what the rules are," said PayPal spokeswoman Amanda Pires.

Since the process can take a while, it pays to think a bit about how strong your claim is.

If you feel you are on solid ground -- say, you want your money back because the purchase never arrived -- Steiner and others recommend that you wait only a couple of days or so before contacting your credit card company to request a chargeback. This will ensure that you don't miss a chance to get the charge erased.

The risk, of course, is that once the credit card company is finished with its investigation, it may not find in your favor and could reinstate the charge. Further, PayPal warns customers that it will no longer process claims once a chargeback is requested. At that point, it is up to the credit card company to sort things out.

Marhefka, the New York woman who bought a desk, didn't contact her debit card company. By the time she went through the eBay resolution process, the deadlines for filing with PayPal had expired. She did go to small-claims court and win, but she can't find the seller. She effectively is out the money.

Dimino, by contrast, contacted Discover Card within a few days of filing his PayPal forms online. Discover took the $100 charge off his account, and he hasn't heard anything about it since, except from PayPal to say his claim with it had been canceled.

Dimino says he has no bad feelings about eBay and blames himself for not checking out the seller more closely. But he also says his generally positive attitude about the whole episode is largely colored by having gotten his money back, and fast.

EBay officials say another strong consumer protection is the ability to leave negative comments about a seller, which other potential buyers can see at the time of purchase. But critics of the system say it's weakened over the years. Aggressive sellers, for instance, can retaliate against consumers who file disputes by leaving negative comments about buyers, which might make other sellers shun them.

At the eBay gathering in Las Vegas, there was much discussion on how to change the system. Some buyers and sellers elect to go to a third-party mediator -- eBay suggests SquareTrade Inc. -- to work out an agreement for both sides to retract negative comments about each other, company officials say. EBay also is considering making it harder for those who lose a dispute to leave unfavorable ratings.

Beyond the comment system, the auctioneer has enlisted the help of brand-name manufacturers to police the site for fake Burberry scarves, Prada or Juicy purses, Tiffany jewelry, or other counterfeit items. "EBay cannot pretend to be an expert on everything," England says.

The company has set up a system allowing companies to contact it about removing a suspicious item. But the system has flaws. Some eBay sellers have successfully sued stores for filing erroneous complaints. And others think eBay could do more. The high-end jeweler Tiffany and Co. has sued the company, arguing that eBay is responsible for the sale of illegal goods through its venue.

Last month, eBay announced it was going to have tougher screening for overseas sellers, where it believes most counterfeit items come from.

And the final tip on protecting yourself on eBay? Just like in the stock market or at a gambling casino, don't buy something you can't afford to lose.