PayPal Charge Back Question.

Say I have a verified PayPal account and after 4 months of that verification, my CC is deactivated by my CC bank.

Now I received 100 bucks from A in my PayPal (I did not have any balance money in my PayPal except that 100 bucks) and then I paid 90 bucks of that 100 bucks to B.

Now if A does chargeback to me, what will happen ?

1. Will PayPal try to charge my CC to pay 100 bucks to A ? OR
2. PayPal will cancel the 90 bucks from the account of B and pay 90 + 10 (from my PayPal account balance) = 100 bucks to A ?

 

No, paypal will not charge or take anything out of your credit card even if there is a chargeback. They would only use the existing funds from your account. However, whenever your account goes into negative balance, it will be limited and you basically cannot really do anything with your account.

Your payment to B will be secured.

Never planned to have your credit card getting deactivated by your bank or engaged in questionable transactions to get chargebacks.

 

Paypal suck. Just my opinion.

 

What makes you think so ? So far, the experience I have with them is no different from other payment processor. Just that with paypal it is so easy to foil the verification system by using VCC and you get people signing up from countries which they are not support to, you get people who ignore the TOS and AUP and even those who are underaged who signed up. You get a host of undesirables using it. If you want to blame, blame the people using it and not the company.

If you done international business, you would know that fraud is just the way of life. Just another business cost which you need to factor in.