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Anyone Know About "Pending" PayPal Transactions?

Discussion in 'BlackHat Lounge' started by WizGizmo, Jan 4, 2010.

  1. WizGizmo

    WizGizmo Super Moderator Staff Member Premium Member

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    Hey B-Hatters!

    Wiz here . . .

    I just wanted to pose a question that hopefully someone can answer.

    A few months back, I was on the boards at about 2:00 AM and a post was made by a member named "theonestopshop". They had a very low post/rep count, but never-the-less, they made a thread in which they were seeking a graphic job that they needed within a few hours. I replied and told them that I could do the job for them (It was for a record label logo design called "Hustle Citi").

    I gave them my PayPal email and shortly thereafter, I checked my PayPal account and saw that the payment was made as "pending" ($50), so I completed the job and sent the graphic to them.

    Well . . . to make a long story short, the payment never went through completely. I emailed the member several times and they never replied. So I figured, okay . . . I got screwed. I never made a "Shit List" post about them because I figured hey! . . . lesson learned.

    Fade out . . . Fade in . . . Yesterday, I had another opportunity to do a small project for a member who has a relatively low post/rep count and they too have done this "pending" thing. This time it's for $100 dollars. However, this time, I told him that I needed the transaction to be COMPLETED before I would send any materials.

    So my question is . . . What are the dynamics of doing a "pending" PayPal payment? . . . and is this a commonly used tactic by unscrupulous individuals to skip payment?

    Any info would be appreciated :)

    Thanks - "Wiz"
     
    Last edited: Jan 4, 2010
  2. oxonbeef

    oxonbeef BANNED BANNED

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    Payments pending usually show if the purchaser does not have the funds in their paypal
    account but has a bank account attached. So they make a purchase and paypal seeks
    to debit the funds from the bank. Anyone unscrupulous could use this by not having the funds in the bank or by cancelling the direct debit facility paypal has with their bank.
    It's a bit like accepting a check as payment and not waiting for it to clear before supplying the goods.
     
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    Last edited: Jan 4, 2010
  3. Westernstar

    Westernstar Registered Member

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    I think this happens when PP issues an echeck which as oxonbeef said happens when they do not have funds in their PP acct. It should also say when the transaction is supposed to be completed.

    I would not do any work until it is showing completed since yo have no way of knowing if they have the funds.
     
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  4. origin

    origin Regular Member

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    I had 1 transaction pending when my client paid through bank transfer, I think it's normal for bank administration, I got my payment within a week.
    Pending status will be changed to Completed and you will get another email regarding the complete payment.
     
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  5. WizGizmo

    WizGizmo Super Moderator Staff Member Premium Member

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    Thanks for the info guys :)

    Yeah . . . I did a bit of Googling about it and noticed that some people do this as sort of an "escrow" type of thing. Supposedly, after they have received the goods, then, if they leave a "favorable response", the transaction goes through, but can take as long as two months for completion. I can see however, where this leaves little protection for the seller.

    I think I will just play it safe and not deliver the goods until I am certain that the transaction has been completed.

    Appreciate the input . . . You all ROCK! :)

    "Wiz"
     
    Last edited: Jan 4, 2010
  6. TwistedMarketing

    TwistedMarketing Regular Member

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    I didnt read the whole thread, but there can be 2 reasons :-

    1. If money is sent from bank, and its received as an echeque. These get cleared in 5-7 days and are clearly mentioned as "echeque payment"

    2. Second is if paypal system detects something suspicious with the sender's account, that payment will show up as pending. This will require a manual review by paypal before getting approved. Dont know the time frame of this.

    Hope this helps.

    P.S - Why supply the work if payment is pending ?