I am planning to use PayPal as my payment option. I am very new at this. Can someone tell me how charge back work on paypal? Lets say customer buys the product and turns around requesting refund?
Paypal pretty much removes the ability to do a chargeback with Visa and MasterCard unless the paypal transaction itself is fraudulent. Since paypal is processing the transaction for the merchant, and dispute would have to go straight through paypal. If a customer makes a chargeback with the credit card issuer for a paypal transaction, the only thing the card issuer investigates is whether the person actually made the transaction themselves. This can work to the advantage or to the disadvantage of either party in the transaction. The customer has to go through paypal to get a refund, and paypal has different requirements to what is a legitimate transaction than Visa and MC. On the other hand, paypal is also very quick to side with the customers especially in the case on intangible products, software, downloads, etc. If you search around you will find a multitude of buyers and sellers that have been burned by paypal, when they otherwise would have been fine with a standard merchant account. Make sure you have a clear refund/return policy, and you keep very good records of anything you ship. This is also required if paypal ever holds any funds. They will immediately ask for shipping invoices and tracking numbers.
That is not correct. PayPal notifies a seller via Email of a pending chargeback. You can then log into your Paypal account and look into the resolution center for information. I highly recommend calling PayPal in case of a pending chargeback and talk to a life person. I had a chargeback pending against me not to long ago and was able to clear out the issue with a phone call to PayPal. The customer service was very friendly. The guy listened to my story and did the appropriate steps on his side. Make sure they put anything you have to say about a case into the notes on your account so that the chargeback team can use that information to work out the situation. If you are an honest business person your PayPal account will reflect that with the history of transactions. Treat customers right and be pro-active. Be careful with fraudulent looking orders and rather refund an order if you are not sure if it is a good order. Christoph
What about people who are unable to use the phone, due to a disability? Everyone says "Call em", but you all take for granted that everyone can talk.
If you can't talk, you should have a TTY telephone. I have gotten ripped off a few times both as a seller and a buyer. I've learned from those mistakes now though; just make sure you know what you're doing.