PayPal Mass Pay -- Chargeback?

Discussion in 'PayPal' started by MakeThatDollar, Sep 1, 2008.

  1. #1
    Can a PayPal mass payment that you receive be charged back or disputed?
     
    MakeThatDollar, Sep 1, 2008 IP
  2. eddy2099

    eddy2099 Peon

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    #2
    As you know Mass Pay is basically use to by affiliate managers or employers to pay their affiliates or employees and as such payments are not deemed as part of sales so you cannot dispute it. As for chargeback, if it was done through a stolen credit card, perhaps but from what I understand the affiliate managers or employers would need to load the funds via wire transfer or checks where no chargeback can be made.
     
    eddy2099, Sep 1, 2008 IP
  3. diver2222

    diver2222 Peon

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    #3
    not 100% sure..you raise a good question
     
    diver2222, Sep 1, 2008 IP
  4. Pervert-For-Life

    Pervert-For-Life Banned

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    #4
    no from mass pay its not possible to reverse a paypal.... and about loading money for business that do mass pay, hey need to do it either using bank or using wire.... which is why chargeback is not possible... beside people who make mass pay never take there money back even if they can....
     
    Pervert-For-Life, Sep 2, 2008 IP
    Radz likes this.
  5. Radz

    Radz Notable Member

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    #5
    Its actually new to me.... NOW i will request my customers to masspay... by this way i can get rid of stupid disputes which i always loose.. lol
     
    Radz, Sep 3, 2008 IP
  6. eddy2099

    eddy2099 Peon

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    #6
    Officially speaking, Mass Pay is not to be used for Sales but for Affiliate Managers/Employers to remit funds to their affiliates or employees. The sender must have existing funds in their account and must have a premier/business account and then they would need to prepare a CSV file with the details according to Paypal Mass Pay format and upload it. After which, the sender would need to pay fees for the funds transfer and the receiver pays nothing since the receiver did not earn because of paypal.

    If you want to get your customer to use mass pay, make sure you know that you are clear of what you are doing because who knows, if you abuse the system, it may lead to your account to be limited. Check with paypal first if you want to use this loophole.
     
    eddy2099, Sep 3, 2008 IP
  7. ian_batten

    ian_batten Well-Known Member

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    #7
    There is no problem for the receiver using mass pay. It can only be used if you have sufficient funds IN your paypal account to cover the cost. Hence the reason chargebacks cannot be filed, as the payment is not coming from a debit or credit card, it's coming from your paypal balance.

    An a normal paypal dispute cannot be placed on a mass pay either. So it's pretty much risk free for the receiver.

    However, when sending a mass payment, you need to be sure that the person who is receiving it is trustworthy. Once it's sent, there is no getting it back.
     
    ian_batten, Sep 3, 2008 IP
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  8. MakeThatDollar

    MakeThatDollar Notable Member

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    #8
    How is using masspay abusing their system? :confused:
     
    MakeThatDollar, Sep 4, 2008 IP
  9. eddy2099

    eddy2099 Peon

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    #9
    Like I said earlier, Mass Pay is an option which allows affiliate program managers and employers to remit funds/salary to their affiliates or employees. The word 'Mass' means a big amount. Since the one who receive money through Mass Pay isn't earning money through selling a product or provision of services where paypal is the payment processor, it cannot be charged back.

    If you are dealing with direct sales then you should use the available payment methods.

    Of course, if you are using Mass Pay to pay your affiliates then by all means, use it.

    Read https://www.paypal.com/us/cgi-bin/webscr?cmd=_batch-payment-overview-outside

    You do notice that it never said that you can use it to receive money from sales of products or services.
     
    eddy2099, Sep 4, 2008 IP
  10. lychee

    lychee Active Member

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    #10
    I thought "mass pay" referred to large quantities of payment requests sent out to customers.
    I didn't realize it referred to large values at all.
     
    lychee, Sep 5, 2008 IP
  11. MakeThatDollar

    MakeThatDollar Notable Member

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    #11
    And it doesn't say ... " can only be used for "... :)
     
    MakeThatDollar, Sep 5, 2008 IP
  12. getjimmy

    getjimmy Prominent Member

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    #12
    Yes it can be charged back,how ? i have no idea.2 months back i read a post on other forum where affiliate network paid by mass payment but when they found out that member generated fake/fraud commission,his money was reversed.
     
    getjimmy, Sep 5, 2008 IP
  13. MakeThatDollar

    MakeThatDollar Notable Member

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    #13
    It's possible they may have just stated that to get rid of scammers. I'd like to see actual proof if it was charged back or reversed. On PayPal's page, it states that only payments sent via credit card could be disputed.
     
    MakeThatDollar, Sep 5, 2008 IP
  14. getjimmy

    getjimmy Prominent Member

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    #14
    I read on wickedfire forum around 2 months back.
     
    getjimmy, Sep 5, 2008 IP
  15. adityas

    adityas Well-Known Member

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    #15
    A dispute can be raised, I don't see why not.

    If a transaction has been completed with one entity being the buyer and the other a seller, a dispute can most definitely be raised.

    However, a chargeback is not possible.

    Chargeback's are done by Credit Card companies, not by Paypal. Paypal reverses a transaction if and on if a dispute is raised and after investigation, the verdict is ruled in one party's favor.

    The question of a Charge back from a CC company does not arise, as Paypal allows you to make a mass payment only from your 'PAYPAL BALANCE' and not via your credit card:) So chargeback is IMPOSSIBLE :)


    Regards,
    Aditya
     
    adityas, Sep 6, 2008 IP
  16. eddy2099

    eddy2099 Peon

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    #16
    Before you ask your customers to use Mass Pay, you need to ask yourself who would benefit more from this, the seller or the buyer ?

    Because for someone to pay you through mass pay, first they need to have a premier or business account and they would need to either be an existing seller from the 40 out of the 190 countries supported by paypal and they need to have existing balances or a way to load their paypal balance with money to pay you. Then they need to prepare a CSV file which complies to Paypal standard and requirements and upload that document. Then at the same time, they will need to be responsible for paying all associated fees for the mass pay. In the end, it looks like it would only benefit the one who receives the money and not the customer (the one sending the money).

    In the end, ask yourself, who needs who more, the customer needs the seller or the seller needing the customer ? You should not inconvenience the one whom you need, that is if you can take advantage of this loophole in the first place.
     
    eddy2099, Sep 6, 2008 IP
  17. MakeThatDollar

    MakeThatDollar Notable Member

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    #17
    Using masspay is not a loophole.
     
    MakeThatDollar, Sep 6, 2008 IP
  18. eddy2099

    eddy2099 Peon

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    #18
    What I mean by loophole is that the Mass Pay is supposed to be used by businesses to make big number of payments to employees or affiliates but you are using it to make customers to pay you so that you will enjoy the benefits at the expense of your customers.

    https://www.paypal.com/helpcenter/m...ps=solutionPanels&solutionId=11163&isSrch=Yes

    details it as

    Is your customer a business ? Is your customer paying a large number of people at one time or just you ?
     
    eddy2099, Sep 6, 2008 IP
  19. ian_batten

    ian_batten Well-Known Member

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    #19
    Maybe not. But there is nothing saying against the use of it for non business customers.
     
    ian_batten, Sep 7, 2008 IP