Paypal chargeback issues in INDIA, Urgent

Hello

I am doing freelancing work from last 2 years. I generally take only Indian Clients, but after expanding network abroad , i started selling my own developed ERP application using paypal as payment processor.

For sometime it works fine, in November 2015 a client from USA purchased my hospital ERP application in 4,000 USD, but in February 2016 i got a chargeback from paypal that the buyer did not authorized this payment. I am stunned by such act of paypal.

Then i read terms and there i saw they do not give protections for digital goods. I immediately called one of my lawyer friend in INDIA, he says he have to study all details and he needs all details of my transactions.

I have his email stated that he accept the software (email is same for his paypal id).

and he filed charge back more after 60 days from payment, which i see in terms of paypal they say that charge-back must be filled less than 60 days.

Its my hardwork of 4,000 USD loss using paypal. I do not want to pay off my negative balance , they have to catch the fraud why they troubling me over this.

I want you to share your advice, on what if i do not pay them, i have only my bank account connected, and i already told them not to issue debit to paypal.

Is there any further charges or tax if i do not pay? what they can do like FIR or court case?

please do reply !

 

Thanks for your reply,

But paypal have taken off 4000 usd from my paypal account and its in negative balance, there is no benefit to fight with buyer as payment is being with paypal.

The main issue is within paypal, i cannot sue buyer as all payments has been done using paypal.

However, you have not replied me on my questions I want you to share your advice, on what if i do not pay them, i have only my bank account connected, and i already told them not to issue debit to paypal.

Is there any further charges or tax if i do not pay? what they can do like FIR or court case?

 

Dear Sarahk

First thing in INDIA there is auto withdrawn, i cannot make this auto withdrawn disable. Hence i did not withdrawn paypal forcefully did.

Second paypal is not a bank, there is lot of difference between a bank and a payment processor or merchant.

I think i must have to work on my own.

Are you from INDIA? .

 

Thanks for your reply, I shall look into other thread.

 

Are you kidding me? Paypal and many other merchants favor the buyers. Are you sure your product reached them on time? If yes, then provide the required details to the merchant with all receipts. However, there are chances that the buyer might try to project you as a scam. Be careful when doing online transactions for something you are not very sure about! You might face legal issues if you are playing the middleman!

 

All merchants got negative charges and there is nothing wrong with that. Like sarahk said, you have to withdraw it before the chargeback is made. You have to solve the issue with the customer only and not with PayPal. I had come across a similar incident with my Versapay payment processing service http://www.versapay.com/payment-solutions/ and like you, Initially, I also thought that it’s issue with the service, but then realized it was the issue with the customer.

 

You can't hold money in your paypal account according rule of RBI in india

 

This is why paypal blocks countries. Allways negative balance and do not pay it. Who cares, paypal is lousong only.
After that why paypal do not accepts indian, pakistan, nigerian people to use paypal.
Before 6 years I have sold an ad in one if my forums for 10 years! Yes for Ten years. I got the payment of $650 from whom I extended the domain for 9 years and the rest cashed out. After 2 months the buyer did a chargeback! But, i dident refused to pay it back (thank God). It took 3 months till I paid it all from hard work selling designs etc.
after 2 years I have opened my online business and after a hard 2 other years am doing a good profit USING PAYPAL!
This is why you should pay back your bills. Life is not that short as you think.

 

Common guys, Bitcoin was already invented. You don't need Paypal anymore.

 

I think he couldn't explain the issue in a proper way. The thing is paypal is a "payment processor" in india and not a bank due to rules famed by RBI (Central, bank authority of India) in 2013. Now, one cannot do transactions with balance in the paypal account. The only thing that can be done is, refund the money within 24 hours or so (if need be), before the balance gets automatically converted and credited to users bank account.

In practice, your Indian paypal account perpetually remains in 0 balance mode. So now that a chargeback has been done, his account must be showing -$4000 as balance and if he receives any payment into that account, it will get adjusted with negative balance, causing him more financial harm.

To refund his customer, he will have to use his credit card to pay the person. He cannot actually refund the amount as it is already withdrawn and if he pays by credit card, he will have to bear the higher exchange rate being charged now, as against when he might have had received his payment. Also, paypal doesn't allow funding of account for any purpose. So he is stuck.

 

Already solved my issue! Thanks

No more posts here now.