Chargeback fees???

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I got a unauthorized payment/chargeback from a buyer for a total of $60. Below is the email. Unfortunately this is a digital item, so I had emailed this person the item instead of shipping it. So I knew the risks when I did it. What bothers me is not that I knew my chances of winning this case is slim, it is the fact that Paypal charged me (or forwarded me) the credit card "settlement fee", which is $20. Is this a credit card fee or a Paypal fee? Will I get this fee back if I do win the chargeback? Thanks!

> Your buyer filed a chargeback with their credit card company asking to
> reverse the above payment. Although your buyer reversed this payment, we
> want to work with the buyer's credit card company to get your money back.
> We are using the information you sent us to dispute the reversal.
>
> Please note that because the buyer already reversed the payment, it has
> been removed from your PayPal balance. The settlement fee the credit card
> company charged for the reversal was also deducted from your account. If
> the credit card company decides the case in your favor, this money will be
> credited back to your PayPal balance.
>
> Keep in mind that the credit card company determines the timeframe and
> outcome. It may take up to 75 days for the credit card company to reach a
> final decision. We will email you once they complete their investigation.

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The buyer's card issuer charges the merchant a fee when a chargeback is completed. That's part of their merchant agreement. the merchant of record, PayPal, has chosen to cover the fee for SPP-eligible transactions and charge the seller for it in other cases. This is part of the User Agreement. As you say this sale was for a digital item, you're going to lose and will be assessed the fee.

The only way to not be charged it would be if the buyer reversed the chargeback. Do you know why it was filed? Has the buyer been in contact with you?

tlaxson said:   The buyer's card issuer charges the merchant a fee when a chargeback is completed. That's part of their merchant agreement. the merchant of record, PayPal, has chosen to cover the fee for SPP-eligible transactions and charge the seller for it in other cases. This is part of the User Agreement. As you say this sale was for a digital item, you're going to lose and will be assessed the fee.

The only way to not be charged it would be if the buyer reversed the chargeback. Do you know why it was filed? Has the buyer been in contact with you?


To be honest, I think this whole thing is a scam. I have tried to contact the seller, but he has been not responsive. He originally didn't want to pay, but then he paid. He requested the keys to his paypal email. I sent it. He acknowledged receipt from his eBay messages. I don't see how he can do a chargeback from his same paypal email and claim that it was unauthorized payment, especially when he confirmed receipt from his eBay messages. So I am to believe that both his paypal AND his eBay account was hacked to make this unauthorized payment? And the perpetrator received the keys from his paypal email, acknowledged he received it from his eBay account?

I can try to call him I guess.

Wreptyle said:   tlaxson said:   The buyer's card issuer charges the merchant a fee when a chargeback is completed. That's part of their merchant agreement. the merchant of record, PayPal, has chosen to cover the fee for SPP-eligible transactions and charge the seller for it in other cases. This is part of the User Agreement. As you say this sale was for a digital item, you're going to lose and will be assessed the fee.

The only way to not be charged it would be if the buyer reversed the chargeback. Do you know why it was filed? Has the buyer been in contact with you?


To be honest, I think this whole thing is a scam. I have tried to contact the seller, but he has been not responsive. He originally didn't want to pay, but then he paid. He requested the keys to his paypal email. I sent it. He acknowledged receipt from his eBay messages. I don't see how he can do a chargeback from his same paypal email and claim that it was unauthorized payment, especially when he confirmed receipt from his eBay messages. So I am to believe that both his paypal AND his eBay account was hacked to make this unauthorized payment? And the perpetrator received the keys from his paypal email, acknowledged he received it from his eBay account?

I can try to call him I guess.


Your assumption that the person you were conversing with through eBay messaging and PayPal email is the actual owner of those accounts is seriously flawed. With the exception of Facebook, eBay and PayPal accounts are the most hacked accounts on the net. eBay/PayPal will not even look at those email/messages for an unauthorized payment dispute. Bottom line for a digital transaction the seller always looses for an unauthorized payment dispute.

Yea I know...was just shocked at the fees. I already invalidated the digital item, so at least there's that.



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