Consumerist:

PayPal Leaves Small Business Out $500 And A Snake

By Laura Northrup on March 30, 2012 11:30 AM

Shawn runs a small reptile business, selling habitats, supplies, and animals. A customer's purchase of a $500 snake went smoothly, with payment via PayPal and a critter off to a happy new home. Then the buyer reported the transaction to PayPal as fraudulent. They ruled in the buyer's favor after an "investigation" that didn't include talking to Shawn, and took back the $500. Voilà - free snake.

His friend, a Consumerist reader, wrote to us on his behalf.

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