How to fight Paypal Chargeback-when fraud has been committed by buyer against paypal.
I sold something via eBay (approximately $200) and chose paypal as method of payment. One month later, paypal charged me back stating owner of the credit card used to make payment has charged them back. I asked them how is it my fault since I shipped to a confirmed paypal address and the CSR told me that "you are wrong Sir" its still your responsibility in charge back situations. We will just make our good faith effort to fight the chargeback based on the information you have provided but ultimately it is your responsibility.
I always thought that I am protected against such events thats why I was using paypal to receive payments and paying them more than 3%. The buyer claims that he used the credit card with her gf's authorization who in turn was using her dad's credit card. The buyer has a 100% positive feedback with 321 ratings so I believe what he is saying but dont know what to do. Any and all suggestions would be appreciated.
Here is the buyer's statement. I am changing names to protect their privacy for now.
"To Whom it may concern:
My name is M.N and I know both the authorized card holder’s of the discover card used to make these purchases. Here is a summary that will explain the events that led I am trying to get these chargeback’s rescinded because the merchandise arrived as ordered, works as intended and you are the victim of an orchestrated fraud: These charges were made by HB – daughter of GB who has initiated the chargeback’s of purchases made by a family member. H bought the software and hardware to help me after my home burned down on Friday the 13th of May. H was my girlfriend and gave me $1,000 in cash and told H to use her card to get me whatever I needed to get my business running again. I own a small internet advertising firm and when my home office was destroyed I moved in with H and she replaced a lot of what I lost (nowhere near the $30,000 in real damages) but enough to stay in business including a Motorola Xoom Notebook, a lot of equipment purchased directly and she gave it all to me. These are real charges she owes and it is BS."
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posted: Jun. 22, 2011 @ 7:58p
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Category IV Economic Depression
posted: Jun. 22, 2011 @ 8:16p
I always thought that I am protected against such events thats why I was using paypal to receive payments and paying them more than 3%.
Nah you are using paypal on eBay and being charged 3% because eBay owns them and does not allow competition and too many sellers like yourself don't know how bad paypal really is. Paypal is notorious for settling with the buyer in disputes, even in the face of overwheling evidence to the contrary. Just be glad you haven't had your account frozen yet due to you accepting payment from a "stolen" card. Seriously I would remove any money you may still have in the account.
Senior Member - 8K
posted: Jun. 22, 2011 @ 8:18p
Did you follow the terms of the Seller Protection Policy? I.e., is your primary residency in the U.S., have you responded to all of Paypal's info requests in a timely fashion, was the transaction marked as "eligible" for Seller Protection on the transaction details page, and do you have proof of shipment or delivery? If so, you should be covered, and need to respond to Paypal with your information supporting your claim under the SPP.
Focus not on the fraud that has been allegedly committed, but rather focus on on your coverage under the Seller Protection Policy for chargebacks based on unauthorized transactions.
I suggest you read the Seller Protection Policy (see Section 11.3c) in detail to ensure you meet all criteria, and if you do, call PayPal and review your case. Escalate if need be.
posted: Jun. 22, 2011 @ 8:19p
Are there any other payment methods that can be used for eBay apart from paypal. I know that eBay has stopped the usage of checks, cashier checks and money orders long time ago.
Paymate has even more higher rates than paypal plus a monthly fee as well. So out of question. Anyone has experience with Moneybookers or Promate?
posted: Jun. 22, 2011 @ 8:50p
Honestly but should I not be protected by paypal in this case?
Senior Member - 8K
posted: Jun. 22, 2011 @ 8:54p
Only you know the circumstances of your sale. Read the link to the Seller Protection Policy I provided. If you met all criteria listed, then call PayPal and fight it. If you did not meet all the criteria, then you set yourself up to lose from the outset.
posted: Jun. 22, 2011 @ 9:10p
tlaxson said: Only you know the circumstances of your sale. Read the link to the Seller Protection Policy I provided. If you met all criteria listed, then call PayPal and fight it. If you did not meet all the criteria, then you set yourself up to lose from the outset.
Thanks seems like I do have a case and paypal CSR was incorrect.
Senior Member - 1K
posted: Jun. 22, 2011 @ 9:39p
if you accept paypal or credit card. you will have "chargebacks" and they are nearly impossible to win. i just got 2 chargebacks myself. out 400$ sigh owell. cost of doing business thesedays
posted: Jun. 23, 2011 @ 2:48a
PP just now notified me they are covering another attempted charge back.... It took a little longer this time, opened on June 2
>>This buyers a real winner.... The item was his first eBay buy on an account opened on May 19 June 1 he bought 2 more laptops......one buy one payment.....I shipped same day. June 2 he opens the unauth use of his cc. I notify UPS to intercept and they did and return the latter purchase to me. When received back, I refunded that payment and opened a cancel sale with eBay, which they did as the buyer did not respond.... got the FVF fees back.
I Love Paypal, this is the 7th such case that all ended in my favor, so it can be done.
Hello aaron s000000,
As you know, we were recently notified that one of your buyers filed a chargeback with their card issuer. One of the unique benefits of using PayPal is that we help you fight unwarranted chargebacks and attempt to recover your funds.
Usually the funds associated with a chargeback are temporarily held until the card issuer makes its decision.
Because you followed the guidelines of the seller protection policy, though, PayPal will cover the amount of the chargeback.
Transaction Date:May 19, 2011 Transaction Amount579.88 USD Case #P-001-328-507-938 Your Transaction ID: 11Y59026000000
posted: Jun. 23, 2011 @ 3:49a
hmmm, I would hear more experiences with PP. up, up. hope more post here.
Senior Member - 2K
posted: Jun. 23, 2011 @ 9:25a
There are entire sites devoted to PP horror stories...
Senior Member - 6K
posted: Jun. 23, 2011 @ 9:42a
Hey...If the buyer wants to rescind the chargeback, which means they want to pay you, email them and have them send you a check of some sort or western union to you. Who cares about the CC or paypal, as long as you get your money.
posted: Jun. 23, 2011 @ 11:15a
op's story is way too long - if the buyer was really interested in "clearing things up" he would either pay the money separately or return the item. His life story means nothing to paypal, and it certainly means nothing to you. The fact that the buyer isn't paying and he isn't returning tells me he has no intention of paying for the item, ever.
Senior Member - 1K
posted: Jul. 14, 2011 @ 1:45p
I, and it turns a bunch of other people sold various gift cards on eBay to a person who only had positive feedback comments, until then (and while he now has a number of comments that say "fraud", eBay doesn't allow sellers to post a negetive rating for buyers, so he still has 100% positive feedback). After I mailed the card, certified, and notified the buyer of the tracking number, the buyer, who paid by Paypal (the ONLY way to pay-I don't know what you sold, but there are very few exceptions) had the bank, where the account is linked to Paypal as the funding source, reverse the payment without explanation then accepted delivery of the item the next day, pursuant to USPS tracking. I called Paypal after being notified the they were "holding" the payment. The CSR asked me if I had proof of delivery. She entered the tracking number on the system, which showed it was delivered to addressee. She took my information and said it will be covered by "seller Protection", and I will be credited with the money in 3 days. In 3 days I received an email stating they closed the matter by a final reversal of the payment. I called Paypal, and was told that gift cards are not covered by seller protection, even though nowhere does it say that in the seller protection terms, which state that all tangible items, defined as something that can be put in a box and mailed are covered, and intangible items, which is defined as something which cannot be put in a box and mailed are not. I called back for maybe 2 hours over a couple of days, working through people who did indicated the item I sold is covered pursuant to the terms, but accomplished nothing until I reached someone who said he would credit the money within 24 hours, which he did. After posting a negative followup to my positive feedback, since eBay does not allow you to change feedback already left, just post a followup, I received emails about others who were similarly defrauded by the buyer, and, I assume by Paypal's fraudulent "Seller Protection".
posted: Aug. 16, 2011 @ 12:12a
There is only one thing that you can do to eBay and PayPal, and that is to hit them where it hurts.
Their pocket book.
I believe that due to their processes they are breaking several Federal Laws, and should be governed, regulated, and audited by the Federal Government for their polices and actions.
This is the ONLY way we will ever get any reasonable response from eBay and PayPal.
Write the "Attorney General Consumer Fraud Division", and ask them to look into eBay and Paypal's illegal policies and practices.
If they believe the Federal Government will start regulating their business practices, they will start acting in a more just manor.
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