Paypal warning - your custom jewelry purchase may not be covered

[swaye2010]

Hi everyone -

I was asked to pass this along since we are ordering a lot from China over here. There have been a couple of PP cases that people have not be won lately. I think it is important to reiterate some of the risks associated with ordering custom jewelry through some of the Chinese companies and maybe even some of the purchases made through the preloved websites. It looks like jewelry is excluded from buyer protection unless the company or vendor is pre-authorized by PP. This is news to many of us and PP is not offering the same level of protection as if you were to purchase through ebay.

As of right now, the only company I know that is actually selling anything through ebay is Starsgem. I know that Tianyu has a shop through etsy but I am not sure if any purchases can be handed that way. Having the transaction go through ebay means you will have a much higher level of Buyer Protection with ebay’s policy but it obviously adds to the cost of the purchase. I guess it is up to the individual person on if they want to take the risk.

Here is the link I was asked to share from reddit. The gemstone guys usually purchase through paypal for international transactions but the same rules would in fact apply to any custom jewelry design transaction. I just wanted to make people aware.

https://www.reddit.com/r/Shinypreciousgems/comments/djy6or

 

[PreRaphaelite]

I hope the OP will be able to get this resolved - this is why I never ever use PayPal to buy or sell. The attorneys general of multiple US states have sued them for fraud/malfeasance and yet it continues. It’s awful.

 

[swaye2010]

I hope the OP will be able to get this resolved - this is why I never ever use PayPal to buy or sell. The attorneys general of multiple US states have sued them for fraud/malfeasance and yet it continues. It’s awful.

Yes, I agree. Venmo is all owned by PP so that is not a great payment system either. Can I ask what you use? I am trying to figure out what might be internationally accepted. I know a lot of gem rough is paid by Western Union and they are losing a lot of money from that too. The PP case is with moissanites but the same problem applies.

To me, if you don’t get what you paid for, that is called ’stealing’.

 

[JPie]

Thank you for sharing this. I think the lesson is to use a credit card for major purchases.

 

[MeowMeow]

Oof jeez. Guess I will stick to my card instead of pay pal from now on. I didn't even know pay pal had this policy.

 

[PreRaphaelite]

Yes, I agree. Venmo is all owned by PP so that is not a great payment system either. Can I ask what you use? I am trying to figure out what might be internationally accepted. I know a lot of gem rough is paid by Western Union and they are losing a lot of money from that too. The PP case is with moissanites but the same problem applies.

To me, if you don’t get what you paid for, that is called ’stealing’.

I agree with you. I’m not a large-scale buyer nor do I make large purchases, but my policy is that I will only pay with credit card, even if that means I have to pay an extra fee to cover the merchant cost.

 

[Daisys and Diamonds]

thanks for the info
ive used PayPal quite a bit because i thought it was safe
and ill be reading the fine print next time

 

[swaye2010]

Having spoken with more people, this was added to the fine print only 6 days ago. I think a credit card is the smarter way to go. I don’t see the point of using a credit card through PP in these situations. It can happen for any of the preloved websites as well if a buyer received something not as described. Saying that there is a ‘difference of expectation’ is a little disturbing. It is either what you paid for, or it is not! They charge a % for that coverage from all transactions.

 

[r12345678]

Having spoken with more people, this was added to the fine print only 6 days ago. I think a credit card is the smarter way to go. I don’t see the point of using a credit card through PP in these situations. It can happen for any of the preloved websites as well if a buyer received something not as described. Saying that there is a ‘difference of expectation’ is a little disturbing. It is either what you paid for, or it is not! They charge a % for that coverage from all transactions.

How do you charge an order for a place like SG or Tianyu without going through paypal?

 

[swaye2010]

How do you charge an order for a place like SG or Tianyu without going through paypal?

You can use PP that is hooked to a credit card but your credit card company will essentially be the person you complain to if you don’t get what you ordered. You might need to check with your CC company to see what happens before the order is placed in case there is an issue.

The alternative is to pay through Alibaba which is 3% cheaper than PP but have that hooked to a credit card or go through ebay which would be 10% for the ebay/PP. Realistically, this is the only way to be fully protected in case something goes wrong.

Gold prices are so high plus there are probably more taxes being added in. I think the moissanites are still much cheaper to buy but the settings are not as cheap as they used be. For some people, it may no longer be worth the gamble.

 

[kindred]

swaye2010 - Thank you so much for posting this warning.

 

[Batgirl76]

Thanks for this very helpful info swaye2010.

Does anyone have insight into resolving disputes when purchasing jewelry thru Etsy? I’ve never had a problem before, but I recently returned a ring I bought from a highly rated seller. The seller is late in crediting my credit card so I just messaged her but haven’t heard back. She’s already relisted my item. It may not end up being a problem, but if it becomes one I’m wondering if Etsy will be of any assistance (?)

 

[swaye2010]

Thanks for this very helpful info swaye2010.

Does anyone have insight into resolving disputes when purchasing jewelry thru Etsy? I’ve never had a problem before, but I recently returned a ring I bought from a highly rated seller. The seller is late in crediting my credit card so I just messaged her but haven’t heard back. She’s already relisted my item. It may not end up being a problem, but if it becomes one I’m wondering if Etsy will be of any assistance (?)

I would think that etsy would have an escalation process like ebay. I am not sure as I haven’t had to do this before. I would not wait very long for the vendor to resolve this though, especially if they have already resisted this item.

 

[YadaYadaYada]

@Batgirl76, You can open a case with Etsy to get your refund, go under "purchases and reviews" and select the item you want to open a case for then there will be a button for "help with this order" click that and it will bring you to a screen to message the seller and if you scroll down there is an option to open a case.

 

[Batgirl76]

Thank you StephanieLynn! I wasn’t aware of this option.

 

[elle_71125]

Well that just seems ridiculous to me. That man clearly bought one thing and it turned out to be something completely different. Not loving paypal in this story.

I use paypal all the time for purchases. I guess I’ll have to be more diligent about using my credit card through paypal instead.

 

[MissyBeaucoup]

@swaye2010 Thanks for sharing this upsetting story. I’m disappointed in PayPal as this was clearly fraud on the seller’s part. Please let us know if you have an update.

 

[Bron357]

PayPal isn’t without its problems and limitations.
It nevertheless is the only widely used, easy to use, fast and fee free (except exchange rate commission and using a credit card) payment method for buyers.
Custom made items, including jewellery, have never been covered under PayPal’s “not as described” dispute service.
Purchases made with more than one payment have also always been excluded.
The exclusion in the fine print “dealing in jewels, precious metals and stones” unless the seller is Pre approved is new.
And it will catch people out.
I have my credit card linked to PayPal. If my purchase is over $500 I will use my credit card to pay even though there is an additional fee (from Visa) for me to use my credit card. I do this because in case of dispute, it is usually easier to dispute through Visa than it is with PayPal.
Personally I wouldn’t buy from IG. eBay for all its flaws at least gives the buyer an opportunity to see how long a seller has been around and what previous buyers have thought of their transaction and item(s) received. It provides some level of reassurance. But there are no guarantees only mitigating measures one can take.
1. Buy from reputable sellers.
2. Buy from sellers whose “track record” can be quantified.
3. Be aware that transactions with sellers located in some countries are fraught with problems. Items purchased may not be insurable, traceable or safely returnable!
4. NEVER pay via Western Union.
5. Exercise considerable caution when paying by bank wire or bank deposit. No recourse.
6. Use PayPal BUT link your credit card and chose that method to pay when “extra piece of mind” is required.
7. Read descriptions and study photos carefully. Omission of information isn’t a basis for “not as described”. Buyer beware is the rule.
8. Understand how “item not received” claims work. If the seller has proof of postage and/or proof of delivery if it was stolen from your mailbox or porch - not their problem. Make sure you request “signed for delivery”.
All these things help reduce your risk when buying sight unseen, online and paying electronically.