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My Experience with PayPal Claims

Discussion in 'PayPal' started by Faqahat, Aug 19, 2017.

  1. #1

    My Experience with PayPal Claims
    (PLEASE DONT DELETE THIS IM LOOKING FOR OPINIONS AND SUPPORT)

    Hello,
    I would like to share my experience and have suggetions on dealing with PayPal Claim Policy.
    I run a non-porfit Gaming Community. We offer 2 Premium service packages. From which we are then able to Pay our servers rent and other expenditures.
    On 20 July 2017 i recived a dispute on one of may payment of £5.54 for "unauthorized payment". I immediately responding providing all the proofs and information that the service had been delivered. While that dispute was awaiting PayPal's responce i recived two more disputes both were made by same user for two different payments of £27 "unauthorized payment". Again i responded immediately and provided all the proofs and and information. While these were under review i recived another dispute for unatuthorized payment of £27. At this point i was really confused but i was patient so the thing i knew is that i recived a very unexpected responce from paypal. They said that the Claim has been made to the credit card company for all of my 3 payments.prior to that i have been charged £14 Fee For each claim which i may or may not win. The problem with this is that i wan NOT notified about this or i wasnt even asked if i wanted to pay £14 Fee to make a claim against Credit card Company. So i was charged £14 to claim £5.54 (sounds stupid right? well not to paypal) and £14 + £14 for two £27 Payments.. So Far I am in loss of £101.54. I tried to explain Paypal that i didnt wanted to make any claim to Bank and i wanted PAyPAl themself to handle this even if that meant losing all three claims. because i couldnt afford to pay ( 14£ x 3 ) to claim to bank but they were just not buying it. My Account has reached 0 Balance at this point. So about 1 week before i recived claims on two more payments but this time i wanted paypal to handle these instead of forwarding it to the Credit Card Company So i contacted Paypal i told them that i "WILL NOT" respond to these two Claims as i dont want paypal to charge me extra £14 for each payment to make claim to bank. So I didnt. I was hoping that paypal might just be able to take care of this if i dont respond by giving the refund to buyer and closing the dispute. Today i recived 2 more emails that the CLAIM has been forwarded to bank again and i have been charged £14 for each claim. So now my Account has negative -£30 Balance. So now i am in loss of 183.54£ i am unable to pay my server's rent this month which means my 7 year old community is now stake because of failure of Paypal's Anti - Fraud Policy and System. To add to it First Three Claims to Bank of £5 and £27 and £27 have been closed in buyers favor the conclusion was that thier credit cards were hacked. So My assumption is that all these payments has been made from hacked Credit Cards or PayPal Accounts. and i have become the biggest victim of this. I have failed to communicate with PayPal Help center and tired of explaining themmy situation again and again. If Paypal cant help me with this. Its very depressing for me and i will continue to spread my message. I also forgot to mention that all of these Payments were underr "SELLERS PROTECTION"


    SEMrush


    (Note: Although My Post Might look much of critisim thats because im furious and aggressive but i am really looking forward for some reasonable opinions)
     
    Faqahat, Aug 19, 2017 IP
    SEMrush
  2. dscurlock

    dscurlock Prominent Member

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    #2
    by doing nothing, you allowed the buyer to escalate the claim, what you should have done was
    provide a refund if you seen they were coming from the same person over and over, any time
    a buyer files a dispute directly with the credit card, then a fee is charge, regardless who wins
    or loses the case, no doubt paypal will pass these fees onto the seller, since paypal accepts
    credit cards directly, then you may not know if it was fraud through credit card or paypal....
    if it was through paypal, then buyer could file dispute, then you have the option to escalate
    the claim or provide instant refund with no other action taken, but if the buyer files a dispute
    with the credit card thus leaving paypal out of the loop, then you do not have any options....
    and I am pretty sure seller protection only applies to physical items shipped w/tracking number.

    Just remember, if the dispute is directly with the credit card, then it is out of the hands of
    paypal, there is nothing for them to handle anymore, they have to obey the rules of the credit
    card, so if a dispute was filed, then they have no choice but to reverse the transaction, and
    the credit card will always charge a fee to someone, and the fee gets passed down to the seller.

    paypal gets 100s or even 1000s of these disputes daily, and I doubt anyone really looks at
    or even investigated your claim, and I bet all this is most likely automated anyways, and for
    the most part, paypal will side with the buyer 9 out of 10 times, so buyer wins....
     
    dscurlock, Aug 20, 2017 IP
  3. Faqahat

    Faqahat Member

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    #3
    Thanks alot. I will definitely follow your tips next time. However i do understand how this is not under PayPal control but PayPal Should Inform Prior that the claim is handled by Bank not PayPal. and ASK the Users if they want to go on with the CLAIM and pay 14£ Fee or Just Issue a complete refund. i was not notified that bank was involved until the 14£ fee was deducted upon telling PayPal that i do not want to do this and issue a refund i received a completely unrelated answer If any Bank is involve information regarding the BANK should be provided so We can directly communicate with them and provide any necessary information.
     
    Faqahat, Aug 20, 2017 IP
  4. MrKing01

    MrKing01 Active Member

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    #4
    If paypal informed you in the same way as @dscurlock, I don't think that this would be an issue for you. You would then understand why they acted in the way they did. @dscurlock, maybe you should think about working for paypal :) However, I think you should try to find another payment processor. Then you will not be at risk of buyers who will take advantage of the chargeback function, long time after they have received the goods.
     
    MrKing01, Aug 20, 2017 IP
  5. Faqahat

    Faqahat Member

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    #5
    I am curious to know about this case aswell.
     
    Faqahat, Aug 22, 2017 IP