Absolutely true. Paypal BLATANTLY REFUSES to refund ANY TRANSACTION THAT IS NOT FOR A PHYSICAL PRODUCT.

I just learned this scam when I payed for a premium account at guru.com and they IMMEDIATELY DELETED MY ACCOUNT AND STOLE MY $35. I tried to refund with PayPal, but PayPal said NO WE REFUSE TO OFFER YOU A REFUND BECAUSE IT IS NOT A PHYSICAL PRODUCT WHERE WE CAN VERIFY TRACKING. The refund was DECLINED and I was subsequently NOT ALLOWED TO OPEN ANOTHER DISPUTE.

I went to my bank, and they also refused to refund, and send me to the fraud department where I could mail in a form saying that I was defrauded. But I still don't know if even my bank will refund the money.

So anyone who says "you could be scammed in PayPal" has NO IDEA WHAT THEY'RE TALKING ABOUT. Paypal WILL NOT FORCE A REFUND UNDER ANY CIRCUMSTANCES.

I don't know much about bitcoin, but I do know it is NOT a physical product which means it is IMPOSSIBLE TO REVERSE. AND NOT JUST GIFT PAYMENTS - ANY TRANSACTION WHICH IS NOT FOR A PRODUCT CANNOT BE REVERSED.

The only person who can be scammed in PayPal for a SERVICE OR INTANGIBLE PRODUCT is the one Sending Money, not the ones receiving it. Because the seller could refuse to send the item or service that was paid for, without any way to get their money back because paypal will DECLINE ANY DISPUTE AND WILL NOT FORCE A REFUND.

SAFE METHODS TO USE PAYPAL:

If you are THE ONE PAYING FOR THE ITEM (BUYER) and you have ALREADY RECEIVED THE ITEM, then PayPal is PERFECTLY SAFE because there is NO WAY THE SELLER CAN REVERSE THE CHARGES.

If you are THE SELLER, and you have ALREADY RECEIVED THE MONEY then it is SAFE TO SEND THE ITEM with PayPal.


DANGEROUS WAYS TO USE PAYPAL:

If you are THE BUYER and you have concerns that YOU MIGHT NOT RECEIVE WHAT YOU PAID FOR, then it is DANGEROUS to use PayPal in this case.

If you are THE SELLER and you have CONCERNS THAT YOU MIGHT NOT GET PAID AFTER SENDING THE ITEM, then it is DANGEROUS to use PayPal in this case.


IN SHORT

If you have ALREADY RECEIVED your end of the deal, THEN YOU ARE SAFE. Now it's up to you to be honest.

If you have NOT RECEIVED your end of the deal, THEN YOU ARE NOT SAFE, if you send then their end first.


TIPS WHEN USING PAYPAL

If using PayPal and you are afraid the payment may be disputed, ALWAYS USE GIFT PAYMENTS. Gift payments CANNOT be disputed.