I’ve been bidding on items on eBay for a long time. Unfortunately, I’ve been subject to fraud more times than I care to admit. However, through losing a few hundred dollars, I’ve learned a few tricks about how you can keep yourself protected.
Most of the payments on eBay are handled through Paypal. Most people figure that since paypal is a large, reputable (snicker) company, they’ll have no problem taking care of the consumer when fradulent auctions occur. Unfortunately, this isn’t always the case. Most people assume that if you lose $500 from a fraudulent seller, you’ll get that money back and paypal will pursue the scammer. In the real world, things don’t work this way. Something most people don’t notice is a little feature called “paypal buyer protection”. Essentially, if you get conned through ebay and pay with paypal, assuming an agent agrees that you’ve been scammed (which usually isn’t too much of an issue), paypal will automatically reimburse you this amount. Paypal will protect up to $2,000 for many of the auctions from well-established sellers, but for all others, this amount is limited to $200.
One of the many times I was frauded, I purchased a dell coupon for $300 off. The auction closed at about $250. The guy ran off and I filed a claim, only to find out paypal would only reimburse $200. Fortunately, my bank managed to take care of the rest. But I learned a valuable lesson none-the-less.

How does one find out what amount they are covered up to? On the right hand side of the auction listing, below the seller’s information, there is a section that shows this amount. As mentioned, most of the time (from reputable sellers), this amount is $2000, as shown above. However, in other cases, the auction is only protected up to $200, as shown below.

What constitutes an auction being protected to $2,000? For starters, the seller must accept paypal as a payment method. In addition, the seller must have a feedback rating of at least 50 and they must have 98% positive feedback. There are a few other requirements which can be found in section 13.8 in the document here. In most instances, you will find that anyone with a feedback rating over 100 has $2,000 buyer protection. And as good practice, you should only purchase from well-established sellers (lots of positive feedback). However, every once in a while, that “steal” of a deal comes along from that guy with 0 feedback. Before you decide to take that gamble, realize that if the item is more than $200, you won’t be reimbursed for all of your losses.
And as another tip, make sure the feedback in the seller’s profile is legitimate. Lately, cons have collaborated and left each other positive feedback on phony auctions to get a better score. Checking the other sellers/buyers as well as the auctions themselves will usually shed light for anyone with a bit of common sense.
Remember, when in doubt, do without.
That’s all! Thanks, and happy computing!