We just had another bad experience with Paypal when a fraudulent buyer filed a false claim of an item not received and it triggered a joke of a week long investigation which ruled in his favor and forced me to let him keep the item and pay him back for it. Even after providing proof of tracking and delivery, and proof of a private message from the buyer in which he acknowledged receipt of the item, they let him keep it anyway. I am very disappointed with Paypal's poor handling of the situation and am curious how many other honest businesses have been taken advantage of by dishonest buyers.
While searching online for instances of businesses that had gone through similar situations, I discovered that 94% of Paypal's reviews on the Better Business Bureau are negative, but still they have an A rating on on the site. I will try to remember this the next time the BBB calls me to offer us a membership. It tells me quite a bit about how meaningful BBB ratings are. Based on those percentages if Paypal were a Seller on eBay their feedback profile would be a whopping 3.7% positive feedback and their account would be suspended, but since they seem to have a monopoly on eBay payments they are unlikely under any real pressure to improve their seller experience.
We have been doing business with Paypal and eBay for almost 20 years now and the anti-seller trend has been worsening for awhile now. The services have been made very easy for buyers to use at the expense of their sellers. By making it impossible for sellers to provide honest reviews of buyers and flag the dishonest buyers, it is now only possible for sellers to give positive reviews of buyers which enables them to scam more sellers before eBay eventually intervenes and suspends the accounts of the few bad buyers out there. Paypal investigations are similarly stacked against sellers with the company going out of the way to ensure that buyers have a smooth buying experience at the expense of the sellers. I remember back when eBay accepted different payment methods and think that Paypal used to treat us more fairly when they were not the only game in town. /end frustrated rant
Here are some other links to sites online that discuss the abysmal experiences that people have with Paypal: