For the first time heard of getting paid by donation button, but can person file charge back directly with the credit card company in this case?Can the buyer apply for charge back if the funds are transferred by paypal balance?
Chargeback is an option given by the bank to its credit card holders to take if they have been cheated by the vendors or have their credit card misused by someone else and it has nothing to do with paypal. The bank would have the final decision. It is possible to do a chargeback if the payment is done through a donation if the card holder claims the transaction is unauthorized. Technically speaking, a donation means giving money without expecting anything back thus making it a voluntary act on the part of the sender, it should not be used as a way to get around some rules. In that sense, as the receipient you will have no control or rights to defend the rights to the money that was given to you. However if someone sends you funds from a paypal balance, he cannot apply for a chargeback since the bank is not involved. He can dispute it and claims his account was stolen or hacked.
So in this case the chance of payment getting reversed is rare and the buyer has to prove that it was unauthorized payment?And in what way this can happen some examples of situations will be good.
All he has to do is say he didn't authorise the payment. That's it. The only difference between a donation and a regular payment is that he can't go to PayPal and say that he didn't recieve the goods, as he wasn't expecting any.
At the same time, the one who receives the money cannot complained that he lost money or goods because a donation is a bonus and the one who receives it has nothing to lose.