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Paypal chargeback issues in INDIA, Urgent

Discussion in 'PayPal' started by samwasim2002, Feb 10, 2016.

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  1. #1
    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 !
     
    samwasim2002, Feb 10, 2016 IP
  2. sarahk

    sarahk iTamer Staff

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    #2
    There are plenty of threads here about negative balances and PayPal.
    Personally, I think having a PayPal account is important enough that I'll play by their rules even if I disagree with them

    In your case your quarrel is not with PayPal but with the customer. You must know who it is and if you are selling a package worth US$4000 you must have a kill switch in it. It's time to limit their functionality or kill it altogether. Then the customer has to either pay up or stop using it.

    If there's no kill switch then you need to get your lawyer to start a civil suit against the buyer - but you may find it expensive and it's better to just write off the sale. After all, you're not really out of pocket, they paid you and were refunded.
     
    sarahk, Feb 10, 2016 IP
  3. samwasim2002

    samwasim2002 Greenhorn

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    #3
    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?
     
    samwasim2002, Feb 10, 2016 IP
  4. sarahk

    sarahk iTamer Staff

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    #4
    That's nonsense. PayPal are just the bank.

    All merchants allow chargebacks and you have agreed to that. Money has come into the account and you've withdrawn it before the chargeback was made.

    Your fight is with the customer only. PayPal have done nothing wrong.

    Search the forum for other threads about how to handle PayPal, no need to regurgitate the same tired advice.
     
    sarahk, Feb 10, 2016 IP
  5. samwasim2002

    samwasim2002 Greenhorn

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    #5
    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? .
     
    samwasim2002, Feb 10, 2016 IP
  6. sarahk

    sarahk iTamer Staff

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    #6
    No, I'm not and I really don't see that that makes much difference. I've sold software online and had to deal with chargebacks. In general, we've "sucked it up" and moved on. At no time did we hold the merchant (we used WorldPay back then) responsible for the actions of our customers.

    Have you checked out the other threads yet? Too lazy?
     
    sarahk, Feb 10, 2016 IP
  7. samwasim2002

    samwasim2002 Greenhorn

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    #7
    Thanks for your reply, I shall look into other thread.
     
    samwasim2002, Feb 10, 2016 IP
  8. Connor Harrison

    Connor Harrison Member

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    #8
    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!
     
    Connor Harrison, Feb 11, 2016 IP
    sarahk likes this.
  9. jas12vc

    jas12vc Peon

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    #9
    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.
     
    jas12vc, Mar 5, 2016 IP
  10. maiyan

    maiyan Member

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    #10
    You can't hold money in your paypal account according rule of RBI in india
     
    maiyan, Mar 23, 2016 IP
  11. Zoti Media Group

    Zoti Media Group Notable Member

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    #11
    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.
     
    Zoti Media Group, Mar 23, 2016 IP
  12. chellosp

    chellosp Well-Known Member

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    #12
    Common guys, Bitcoin was already invented. You don't need Paypal anymore.
     
    chellosp, Mar 27, 2016 IP
  13. writepro19

    writepro19 Active Member

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    #13
    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.
     
    writepro19, Apr 8, 2016 IP
  14. samwasim2002

    samwasim2002 Greenhorn

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    #14
    Already solved my issue! Thanks

    No more posts here now.
     
    samwasim2002, Apr 8, 2016 IP
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