I have a question. A person filed a chargeback against me about a month or two ago, and I just got a response from Paypal. However, I dont completely understand it. Could someone tell me exactly what this means? Does this mean at any time they can rip the money that they "credited" away from me, should the credit card company deem fit?
Basically what happens is this: 1. Your customer used his credit card to buy from you through paypal. 2. Paypal gave you the money. 3. Your customer now claims he didn't get what he paid for, or that he never made the charge. 4. If the customer succeeds, paypal will have to pay the credit card company back, so they've taken the money back from you. 5. If paypal succeeds, you get your money back. Any proof you have that your customer got what he paid for (like a UPS shipping slip, an email he sent, or anything else like that) should be sent to paypal so they can fight the credit card company for your money more effectively.
Provided Paypal with every possible evidences you got, showing the good was supplied to the buyer. This will help PayPal to win the chargeback against you.
Hmmm. Alright. That's kind of lame how Paypal does that though... They shouldn't credit you money then fine you for it, when you dont even agree to it in the first place. They should just keep it on hold, then credit it to you if you win. That way, it doesn't seem like you're losing anything. Anyway, thanks for the quick responses
Trust me, it's better than if you had your own merchant account. ... And if you have a business or premium account, I'm sure you agreed to it, it's just buried in all the fine print nobody ever reads
The most important thing is to remember...that there will come a point where you either lose all your money (chargeback is successful) or you'll just say "screw it" and let Paypal let the chargeback go through (effectively a refund). Either way you get charged $15.00 I think. It's totally taxing on all merchants.
Actually this all happens automatically when any transfer is done. The real people come into action only when there is some dispute. Moreover, its all explained in their TOS mate when we make an account with them.
chargeback is the most painful out of all... because the seller have to pay the chargeback fees.... so people who knows about chargeback knows the pain behind it.... i got scammed last year and suffer several chargeback in the same month... but i learn a good lesson after this... about paypal, there is nothing paypal can do to stop a chargeback because the credit card company take the money back by force... its the buyer who is behind all the mess.... buyer is the one who cause all that trouble... so there is nothing you can do anymore other then wait for the final result... but i will suggest you to use moneybookers.com because its very hard to chargeback from moneybookers.com and reversal is not allowed at moneybookers so there is no way your buyer can setup a dispute...