When you’ve paid for an item—especially online—and the seller never delivers, the immediate question is:

“Estafa ba ’to, or small claims case lang?”

In Philippine law, that simple question actually sits at the crossroads of criminal law (estafa) and civil law (collection of sum of money / damages, including through small claims).

This article walks through the key concepts, procedures, and strategic considerations when goods are not delivered after payment, focusing on the Philippine setting. It is for general information only and not a substitute for legal advice on a specific case.

1. Civil vs. Criminal Liability: The Big Picture

When goods are not delivered after payment, two main possibilities arise:

Purely Civil Liability (Breach of Contract)
- The seller failed to comply with their obligation (to deliver goods or return payment).
- You can file a civil case (possibly via small claims, depending on the amount) to recover money or enforce the contract.
Criminal Liability (Estafa)
- The seller’s acts are not just breach of contract but involve deceit (fraud) or abuse of confidence, punishable under the Revised Penal Code (RPC).
- You can file a criminal complaint for estafa, which may also include your claim for damages.

Sometimes, both civil and criminal aspects are present. The same act can give rise to criminal estafa and civil liability for damages or refund.

2. Estafa Basics (Philippine Revised Penal Code)

2.1. What is Estafa?

Estafa is a crime under Article 315 of the Revised Penal Code. In simple terms, it punishes certain acts of defrauding another person, causing them damage, usually involving money, property, or rights.

Common forms include:

Abuse of confidence (e.g., receiving money in trust, then misappropriating it).
False representations or fraudulent acts (e.g., pretending to have a business, authority, or goods that don’t actually exist).
Use of fictitious names or fraudulent means to obtain money or property.

2.2. General Elements of Estafa

Though there are several modes of estafa, they usually involve these core elements:

There must be deceit or abuse of confidence.
- Deceit: false pretense, false representation, or fraudulent act that induced the victim to part with money or property.
- Abuse of confidence: the offender had a duty (fiduciary or trust-based) and violated that trust.
The victim relied on that deceit / abuse of confidence.
- Because of the misrepresentation, the victim handed over money or property.
The victim suffered damage.
- Typically, loss of money, property, or a property right.

2.3. How “Paid but Not Delivered” Can Become Estafa

Non-delivery of goods by itself is usually just breach of contract (civil). It becomes possible estafa if one or more of these are present:

The seller never intended to deliver the goods from the very beginning and only used the transaction to collect money.
The seller used false business details, fictitious identities, or false claims (e.g., pretending to be an authorized distributor when they are not).
The seller repeatedly collects money from multiple buyers then disappears, blocks contact, and never delivers.
The seller refused to deliver or refund despite demand, combined with circumstances showing fraud, not just financial difficulty or delay.

On the other hand, it is usually NOT estafa if:

The seller is real, known, and traceable but is just delayed, out of stock, or financially struggling.
There was no clear lying or trickery at the time you paid—just subsequent failure to perform.
There are legitimate business issues (logistics, supplier delays, etc.), even if the seller is negligent.

Criminal law requires proof beyond reasonable doubt of fraud. Mere failure to deliver, without more, rarely meets that standard.

3. Small Claims Basics (Philippine Judiciary)

3.1. What is a Small Claims Case?

A small claims case is a simple, speedy, and inexpensive civil procedure under a special Rule issued by the Supreme Court (Rule of Procedure for Small Claims Cases, as amended).

Key features:

Filed in the first-level courts:
- Municipal Trial Court (MTC)
- Municipal Trial Court in Cities (MTCC)
- Municipal Circuit Trial Court (MCTC)
- Metropolitan Trial Court (MeTC)
For purely civil money claims involving a relatively low amount of money (the exact ceiling can change via Supreme Court administrative matters; you must verify the current maximum with the court or a lawyer).
Common causes:
- Unpaid loans
- Unpaid rent
- Damages from contracts
- “Paid but goods not delivered” – claim for refund or damages
Lawyers are generally not allowed to appear as counsel for parties (except under specific exceptions like when the party is a juridical entity and allowed by the rules). You usually represent yourself.

3.2. What You Can Ask For in Small Claims

In a “paid but goods not delivered” situation, your small claims case will usually be for:

Return of the amount paid (refund)
Plus possibly interest and/or liquidated damages, if provided in a contract, and sometimes costs

You cannot ask the Small Claims court to send the seller to jail. That is purely criminal, handled in a different case (estafa).

4. Estafa vs. Small Claims: Comparing the Two

4.1. Nature of the Case

Estafa
- Criminal case.
- Goal: to punish the offender (imprisonment, fine).
- Civil liability (damages/refund) may be included but is secondary to the criminal charge.
Small Claims
- Civil case.
- Goal: to recover money or enforce payment of obligation.
- No imprisonment; it’s about payment, not punishment.

4.2. Who Files?

Estafa
- You (the complainant) file a criminal complaint with the Office of the City/Provincial Prosecutor (or sometimes directly with the court for certain cases).
- The State (People of the Philippines) becomes the nominal plaintiff once the case is filed in court.
Small Claims
- You file a Statement of Claim with the appropriate first-level court.
- The case is between private parties: you vs. the seller.

4.3. Standard of Proof

Estafa (Criminal)
- Proof beyond reasonable doubt is required. This is a high standard.
- Doubts favor the accused.
Small Claims (Civil)
- Preponderance of evidence (more likely than not; “mas mabigat ang ebidensya mo”) is enough.
- More relaxed than criminal standard.

4.4. Evidence Needed

In both cases, the following are normally relevant:

Proof of payment:
- Deposit slip, bank transfer screenshot, transaction reference
- GCash/PayMaya/other e-wallet receipts
Proof of agreed goods/terms:
- Screenshots of product listing, chat/email agreements, order form
Proof of non-delivery:
- Courier tracking (no shipment), absence of delivery, chat/email follow-ups
Proof of demand:
- Demand letter (via email, courier, or personally served)
- Chat messages asking for delivery or refund

Additional for Estafa (to prove fraud):

Use of fake identity or fake business name.
Evidence seller has scammed multiple people in similar manner.
Screenshots showing clear lies: false promises, fake shipping details, etc.
Proof the seller immediately blocked or disappeared after payment.

5. When is It Better to File Estafa?

You might consider a criminal estafa complaint when:

The seller’s actions show clear deceit from the beginning.
There is a pattern of scamming (many victims, fake accounts, etc.).
The amount involved is substantial enough to justify the time, effort, and emotional cost of a criminal case.
You want to deter or stop the scammer from targeting others (criminal liability is a strong deterrent).

Pros:

May lead to imprisonment or fines.
Can pressure the accused to settle or pay to avoid conviction or to mitigate penalties.
If successful, may include civil liability (refund/damages) in the judgment.

Cons:

Longer and more complex process (prosecutor’s investigation, possible trial).
Higher standard of proof.
Requires more effort, sometimes more costs (travel, lost work time).
If the offender is unidentified, untraceable, or has no assets, your chances of actual recovery may still be low—even if convicted.

6. When is It Better to File a Small Claims Case?

You might consider small claims when:

Your main goal is just to get your money back, not to send anyone to jail.
The amount of your claim is within the small claims jurisdictional limit (you must verify the current ceiling with the courts).
The seller is known, identifiable, and reachable (business with an address, official contacts).
There is no clear evidence of deceit, only non-delivery or delay.
You prefer a faster and simpler process, with basic forms and less formality.

Pros:

Simplified procedure; usually faster to be resolved.
No need for a lawyer (in many situations), which saves legal fees.
Focused on money recovery, with lower standard of proof than criminal cases.

Cons:

You only get a money judgment, not a jail sentence.
If the seller has no assets or refuses to pay even after judgment, you may need to go through execution (garnishment, levy), which can be another process.
If the seller is a scammer with no traceable assets, a favorable judgment may still be difficult to enforce.

7. Can You File Both Estafa and Small Claims?

7.1. Criminal Case (Estafa) + Civil Liability

Under general rules, filing a criminal case for estafa automatically includes the civil action for recovery of the amount, unless you expressly reserve your right to file a separate civil case.

So if you file estafa, you may no longer need a separate civil case for the same claim, unless you legally reserve and properly handle that.

7.2. Criminal Case and Separate Civil Case

There are scenarios where:

The victim may file a civil case (e.g., small claims) first (to get quick judgment), and
Also consider a criminal complaint later, especially if more evidence of fraud surfaces.

However, complexities about forum shopping, res judicata, and double recovery can arise. Courts do not allow a person to:

Sue multiple times for the same cause of action and
Get double compensation for the same damage.

Because this area can be technical, it is wise to consult a lawyer before pursuing both a criminal and civil route regarding the same transaction, particularly if a case is already pending.

8. Practical Steps if You Paid But Goods Were Not Delivered

Here’s a practical roadmap you can adapt:

Step 1: Gather and Preserve Evidence

Save receipts, screenshots, emails, chat logs, order confirmations, and tracking numbers.
Make printed and electronic backups.
Document timelines: date of order, date of payment, promised delivery date, follow-up attempts.

Step 2: Communicate and Demand

Politely follow up via the same channel where you placed the order.
If ignored, send a formal demand:
- Briefly state facts: you paid on X date, goods not delivered as of Y date.
- Give a deadline (e.g., 5–10 days) to deliver or refund.
- Send via email and/or registered mail / courier when appropriate.
Keep proof that the demand was sent/received.

Step 3: Assess the Nature of the Case

Ask yourself:

Does it look more like business negligence (e.g., delayed logistics) or intentional trickery?
Is the seller known and legitimate (registered business, physical store) or hiding behind fake identities?
Is the amount within small claims limits (for possible small claims) or higher?

Step 4: Choose Remedy (or Combination)

Option A – Small Claims Case

If your main goal is refund and there is no clear fraud, small claims may be more practical.
Go to the first-level court in the proper venue (often where you or the defendant resides or where the cause of action arose).
Secure and fill out the Small Claims forms (available at courts).
Attach evidence and pay minimal filing fees, if applicable (some cases may be exempt or reduced).

Option B – Criminal Complaint for Estafa

If there is strong evidence of deceit or a scam, go to the Prosecutor’s Office with:
- Your Affidavit-Complaint (narration of facts).
- Supporting documents (payments, chats, IDs, etc.).
- Affidavits of witnesses, if any.
The prosecutor will conduct preliminary investigation to see if there is probable cause to file a case in court.

Option C – Administrative / Regulatory Complaints

Depending on the type of seller, additional paths might include:

Filing a complaint with DTI for consumer-related issues.
Reporting to online platforms, payment channels, or marketplace complaint centers (to at least suspend the seller, if they violate platform policies).

9. Special Focus: Online Transactions and Social Media Sellers

Online and social media transactions greatly increase the risk of the “paid but no delivery” scenario.

9.1. Indicators of Possible Scam

Seller refuses to show valid ID or official business documents.
Seller insists on full payment upfront but gives vague details about their business.
Page or account is new, with copied content or few real reviews.
Price is too low compared to market prices (too good to be true).
After payment, seller:
- Blocks you,
- Changes usernames,
- Deletes the page, or
- Gives obviously fake tracking numbers.

These are strong red flags that support a possible estafa complaint.

9.2. Online Marketplaces & Platforms

If transaction occurred through an established platform (e.g., marketplace apps or big e-commerce sites):

Use their in-platform dispute or refund systems first, as they may provide:
- Buyer protection programs
- Escrow-type arrangements
Your legal actions (civil or criminal) remain available, but platform procedures can sometimes provide faster resolution or refund.

10. Venue and Jurisdiction Considerations

10.1. For Small Claims

Generally, you may file the case in the first-level court of:

The place where the plaintiff (you) resides, or
The place where the defendant (seller) resides, or
Where the cause of action arose (often where payment was made or delivery was supposed to occur), depending on the rules in force.

The monetary limit is crucial. If your claim exceeds the small claims ceiling, you may need to file a regular civil case, which involves more formal litigation and usually lawyers.

10.2. For Estafa

You typically file a complaint with the Office of the Prosecutor where:

The crime was committed, which might be where:
- The payment was made or received, or
- The false pretenses were made, or
- The damage was suffered.

Jurisdictional rules can be technical; in complex cases or online scams with unclear locations, a lawyer’s guidance can be invaluable.

11. Practical Tips to Strengthen Your Position

Always document agreements in writing, even if only through chats or emails.
Avoid purely verbal agreements with unknown online sellers.
Prefer trusted platforms that provide some form of buyer protection.
For big-ticket items, insist on:
- Partial payment only, or
- Cash-on-delivery (COD), or
- Escrow arrangements, where feasible.
If something feels off, walk away from the deal. It is cheaper to lose a “good bargain” than to become a victim of fraud.

12. Summary: Estafa or Small Claims?

If there is clear deceit, fake identity, or a scam pattern → consider Estafa (criminal case).
If it’s mainly non-delivery / breach of contract without clear fraud → Small Claims (civil case) is often the more practical route.
Both remedies may, in some situations, be available, but care must be taken to avoid procedural issues and double recovery.

Because rules, monetary limits, and procedures can change and every situation has its own facts, it’s advisable—especially for higher amounts or complex situations—to consult a Philippine lawyer or seek assistance at the Public Attorney’s Office (PAO) or legal aid clinics, if qualified.

This gives you the legal landscape when you’ve paid but the goods never arrive—where estafa ends, where small claims begins, and how to choose the path that best fits your situation.