Hey guys. I'm running a small web hosting business and I got an email for a Chargeback case. I have never dealt with a chargeback before so I got no idea what to do. The reason for the case is 'Unauthorized'. Paypal gives me 3 options to resolve the chargeback: 1.Provide proof that I already issued a refund to the buyer. 2.Provide evidence for dispute. 3.Accept liability. What should I do? I've suspended the guy's account temporary. There were no form of communications between me and my customer before.
PP doesn't protect the buyers from "virtual sales", so you're best off freezing his account and refunding him.
I'd throw up a few screen shots of his hosting account, associated with his email. Send them to paypal and see what happens. It's a long shot, but it'll look better than straight up accepting liability.
Well, you can always try provide evidences that you fulfil your side of the bargain. Although it may not do you any benefit as it is a virtual item but responding to Paypal will at least show to Paypal that you are not the one at fault. Keeping quiet shows that you do not care and probably are in the wrong.
Yes. I've fulfilled my side by having the hosting account delivered. I'm afraid if I wish to pursue this matter, Paypal will charge me some fees. Will they?
What fees will they charge you ? I am not aware of any. I have disputed several before and I was not charge anything or given any blackmark. If you know you are in the right, it is not a good thing to keep silent. I know they say 'Silence is Golden' but in reality, Silence usually mean an admission of guilt. If you done your duty and you have evidence of that, show them to Paypal.
But what if it is a fraud? (Because it looks like to me) The initial ip address (when the user sign up) was a proxy ip.
As long as you are not the fraudster, you can always state your claim. Like I say, most likely you will not get your money back but what is important is so that Paypal knows that you are in the right and the other party is a fraudster, his account may then be under investigation. Most important thing is to show Paypal that you are not in the wrong.
Nah they won't charge fees, don't worry about that. Just provide "evidence" that you delivered. Since you can't provide a tracking number, which is the only thing they consider "proof", they'll automatically refund him. Paypal blows.
Mate, give them a phone call. It will put it in the bag for you. Explain that it's an online service, you've done what should of been done by you, and you should win easily.
I used to have a same problem. paypal support told me that if i didn't send any goods then i have to refund him now anyone can get an instant refund
Your not losing anything or product, its only a web hosting account, just refund the money and move on.
I have had one of those, to minimise your lose, I think you should just disable the account the chargeback is associated with and refund the payment. Chargeback for merchants is usually a lose lose situation.
I would suggest that you refund the amount as well as talk to Paypal and put your situations and concerns. Well, even i had such issues, some times this happens when there is no product name or domain name in the invoice that is sent to client (in your case, the client might be fraud). We used 2checkout and they do not have domain name mentioned in the invoice that is sent to the client, that really caused mess. The client would initiate chargeback, as they wouldn't be aware for what they are charged. Just thought of sharing it with you all. P.S. we have changed the entire billing system to ModernBill, it handles the invoices well
Paypal sucks. Deal with it. I get chargebacks nearly daily, because most transactions I get are $5 - $20, I mostly dont go against it, nothing I can do anyways. If its for $100-$500 though, then I start calling them. Paypal have a mind of their own though, doesnt matter what you do or say.
At the risk of sounding like a paypal lover, I can state that it would make no sense whatsoever for paypal to make refunds all the time. They ONLY make money on transactions - refunds COST them money. As a business, they will pay fees for these refunds via their banking account EVERY TIME. What they do is a cost cutting exercise. They pay out without any quibble on cases that are unwinnable, or cases which, in the long run, they have little or no chance of succeeding with. As a user of their services, you agree to ACCEPT their decisions when you sign up. Whilst many people may not like the decisions they make against them (TRUST ME, I have been on the receiving end of a few of them!), you can rest assured that they are only paying out on a case that you would have little chance of succeeding with even if you decided to challenge it yourself. REMEMBER ... they ONLY make money on transactions, and you can bet your boots they are ONLY in their business to make money!