Continuing with yesterday’s blog entry about fraud, what about PayPal? PayPal is a payment system you can implement for your website, but it is not [technically] a bank. Therefore, it does not have the same kind of controls in place. One of the biggest issues with PayPal is the problem of hijacked accounts.
Hackers can hijack PayPal accounts by using phishing techniques and you (the merchant) may not realize that you are selling to a hijacked account. For items of higher value (value this term according to your own level of risk acceptance) make sure you only send to confirmed PayPal account addresses. If you send your goods to confirmed addresses, you will be covered by the PayPal Seller Protection program in the event of a fraudulent transaction. (By the way, you must also have a verified Business Account with Paypal).
If you accept PayPal as a form of payment on your website, always check the ship-to address from your PayPal paid web order to the address on the PayPal transaction page. If they’re different – beware. You can tell if the address is confirmed just by looking at the PayPal transaction page. It will say “eligible for Seller Protection”.
For more details on the PayPal Seller protection program, click here. Now that the holiday shopping is upon us, have a fraud-free holiday for your home-based business!