I don't have paypal support in my country and i'm not familiar with it's system but i see people complaining from chargebacks and that after they sell something for money then the buyer makes a chargeback and gets his money back and keeps what he "Bought" is that fair ? is this how it works ? how come it's safe to get paid by paypal this way ? sorry if i got it wrong but here i'm asking for detailed explanation
This goes beyond Paypal and to all payment processors in general. Just because someone successfully files a chargeback against you doesn't mean you're out of options. The processor may have given them their money back but fraud is fraud. You still have legal options to pursue the customer and get your goods back and maybe even have them arrested. If you sell internationally naturally this becomes much more difficult but you assume that risk by opening your business to other countries. But if it occurs within your country, you are free to contact the authorities and report it as a theft and/or pursue them through other legal channels. And the reason why the customer usually gets their money back is because Visa and MasterCard have a policy of siding with the customer in non-swiped transaction disputes. American Express and Discover Card do as well but in some scenarios they may side with the merchant. They know that cardholders don't have to use credit cards but merchants have to accept credit cards if they want to stay in business. So they try to be as consumer-friendly as possible usually at the expense of the merchant.
What about trading sites or scripts I agree with someone about a script and he pays me and i send him the script then he simply makes chargeback and gets his money and i lose money and the script and such stuff have no papers (who signs papers when buying a website or a script ?) this is the question why when i start the compliant from my site then i'm the good guy and the other one is bad ? i find it safe to deal with other payment processors which don't support chagebacks because of a simple reason I didn't force the other side to pay me - he paid with his own will then he must keep it this way this is what i think and my humble opinion
Charge backs suck and are a "cost of doing business", try and protect yourself as well as possible. Ask for a land-line phone number to call for confirmation, check refrences/feedback if possible. Just doing those two things will cut your chances of getting ripped off in half. good luck
In these cases you should be using escrow. If you are not, then you are willingly and knowingly putting yourself at risk. It's a shame people out there suck sometimes but it's a fact of life.
better customer services can help. I launched a charge back again a guy who developed a script for me because the script was full of bugs and he refuse to fix it, I also warn him that if the bugs are not fixed I will dispute the payment which I did and got my money back/
What people do forget is that chargebacks do serve a legitimate purpose and that most chargebacks are warranted.
Here is a little info about this. My mother makes her living selling various stuff on eBay...she has like 600 feedback now and her Paypal feedback is 563 or so. Anyway, she gets these chargebacks now more then ever almost one every week or two and these vary from $80.00 to $300.00 but they don't send the chargebacks until they receive the item, catch my drift? So someone could buy a PS3, chargeback and they are up $600-900...she lost her paypal account from this, well she owns them $300 now due to false claims...
In such case how do you prove that you are right ? do u send them the script ? (paypal staff) escrow is good but for large transactions not things below 200$ or such so escrow is not the clue (now i'm starting a song ) that's exactly the point behind this thread - are chargebacks good or bad ? buyers will see it as good because they want a second chance or others want it to do some scams Sellers will see it as a weak point and a cost of business and some risk that should be taken So paypal is taking the customer side because sellers have to use paypal while customers don't ?
We almost came up short for rent due to this issue We can't ever win the fight between it. Paypal always sides with the bidder and the Americans (No offense but any Canadian seller is automatically told, claim has been made, $___ will be deducted from your account or it will result in ... etc
It's true that escrow isn't as good for small transactions but if you have large transactions and/or get frequent chargebacks it should be standard operating procedure to use.
My main complaint lately on Paypal chargebacks is that they somehow aren't catching fraudulent credit card use during processing. If the Paypal account info doesn't match the credit card account info, why are they clearing the transactions? As it stands, I'm seeing 2-3 transactions per week that are charged back due to fraudulent credit cards. We've tried to adapt how we deliver services so that it doesn't wind up costing us a fortune, but it's very challenging.
chargeback was file against me b/f for $120.00 i state all the facts that i did send what i listed just as it said and i won! i got to keep the money you dont have to lose
Was it from an eBay sale? I tried providing shipping tracking # and everything...no good, never won before but I was in the right...
ive dealt with paypal as a consumer and the only two times that I have disputed something I lost. One was with a merchant that was getting pummeled with complaints he personally sent me an email to file it as a chargeback because paypal had gone as far as to freeze his account so he couldnt do anything on the account and when i did paypal refused to refund me my money... second time was with a buggy web script....after contacting creator of script and not coming to a resolution or fix I informed him that I would be performing a chargeback.... this was 15 days after I made payment....i submitted my case to paypal and was very confident....the programmer replies to paypal stating that there was a return policy on his website and provided a link.... i looked and looked on his website and informed paypal as a reply that there was no such link on the website and this was the first time i even read such a thing...i even begged them to look at the website......after that case closed....seems like they had made up their mind without even taking the time to look into the case...i went with another programmer and had the website done for a third of the cost and had it working in a few hours. both times it was digital products... its not always the merchant that loses....