Please do not take this personally, but these are the reasons why I don’t take paypal from international buyers.
I have read the entire Paypal User Agreement (have you?). There are alot of loopholes where an international buyer using paypal can extort the USA seller into paying their customs fees or screwing the seller and getting the product for free. I have personally know a person who got screwed out of a guitar shipped internatioinally this way. I don't want to be the next. This is why I insist on Bank Money wire transfer only.
Paypal's Policy: If the recipient of the merchandise says they have not received their item, I must prove by "electronic Signature confirmation of delivery" to their residence via a UPS, Fedex or US Post Office website (or other legitimate shipper). If I cannot prove this the purchasers are intitled to a FULL REFUND. Paypal will take the money out of my account and give it back to the buyer.
1. If a USA seller ships a guitar internationally by USPS (united states postal service), tracking is provided only to CUSTOMS, NOT their house or p.o. box. The buyer tells paypal they never received the item and since the seller cannot prove "electronically" the buyer received the parcel, paypal returns the money to the buyer.
RESULT: The buyer keeps the guitar and gets his money back. The seller is screwed.
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2. If a USA seller ships a guitar say FEDEX (where you can get "proof of delivery" to the buyers door), but the buyer refuses to pay their customs fees or refuses to sign for it, the guitar will be returned to the seller.
RESULT: SELLER WILL LOSE THE SALE AND HAS TO PAY RETURN SHIPPING. PAYPAL WILL RETURN ALL MONEY TO BUYER. ! (example: Cost to ship body to europe is approximately $150 USD. I may have to spend $300 USD just to get my package back !). >>> see # 3
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3. If the international buyer does NOT pay customs fees, the USA seller may PAY the customs fees rather than losing the sale and losing ALL shipping fees (both ways with Fedex).
RESULT: Seller CAN BE EXTORTED INTO PAYING BUYERS CUSTOMS FEES resulting in lower or no profit for me.
I have called paypal numerous times regarding their policies on international sales. It is hard getting information out of them. You have to know the answer before asking the question it seems. If you call them on their mistake or misrepresentation, it they will admit it, but sometimes you have to get to the supervisor level. It seems only the supervisors know what is really going on (it was a superviser who told me about the "not paying their customs fees" scam). I only want paypal to change their policies to protect sellers more. If I am incorrect in anything I have stated here please inform me and I will change it. If paypal will change their policies then I will change mine.
So it should make sense that now that I have told you the different ways an international buyer can screw me by paying with paypal.
So sorry, I cannot take paypal for international orders.
Alternate payment methods are Bank Money Wire Transfers. I have accepted these numerous times and it works great.
additional notes below
Updated 01-27-10 I have spent about 4 to 5 hours over the last few days reviewing paypals new policies as well as the policies of UPS, Fedex and the US Post office. Another hour and a half or so was on the phone with them to get clarifications of their policies. Here are the results.
Most think I don't take paypal because I want to save Paypal fees. This is not the case since I gladly accept paypal for domestic sales for items sold on ebay. There is seller protection if you follow paypals guidelines. However there are cracks in the system. I will finally break my silence why I don’t sell to internationally to buyers wishing to use paypal. By doing so I may inform unscrupulous bidders how to literally steal guitars or not have to pay customs fees at the expense of the seller. I am hoping sellers see this before the theives do. I have spoken with USA sellers that have been ripped off by international buyers who know how to extort the system.
Do not take this personally, but these are the reasons why I don’t take paypal from international buyers.
First, so that I do not receive a "backcharge" from paypal or have to refund all the money to the purchaser, I must prove that they signed for the package. If I ship with the US Post office, this cannot be shown online (in rare cases it can but it's so iffy that I don't want to risk it), so paypal will refund all the money to the international purchaser. All he has to say is "I never received it). Since I cannot prove that he received it, I'm out the money. (I know personally people that have had this done to them).
Second, if I ship with Fedex (I am a Fedex shipper), and the international purchaser does not pay the customs fees, Fedex will charge me for the purchasers customs fees (probably around $75 to $125 USD). If I don't pay them then I will have to pay the shipping back to me just to get my package back. In the case of shipping overseas that would amount to around $300.00 USD just to get my package back. I called UPS and they said I would not only have to pay shipping both ways but also have to pay the customs fees. UPS said it would be cheaper to be extorted into paying the purchasers customs fees. I said bull !
So the choices are shipping with the less expensive USPS international shipping and not getting the signature confirmation and risk being backcharged the entire amount. OR Ship with Fedex or UPS where I do get the signature confirmation, and possibly have to pay the purchasers customs fees in the event they don't pay. Also if they refuse to sign for the package I would have to pay shipping both ways plus the customs fees since it did enter their country. Sheesh....it's not looking good for using paypal for international purchases.
I am not suggesting that any particular person is crooked or out to steal my product but there are areas where I could lose significant amounts of money if they buyer is lax in his part of the shipping process.
Here are the items explained a little different so you may further understand it.
I have looked into Western Union and Moneygram but they have their limitations.