PayPal - Negative Balance after customer opened a dispute

Help I am working as a online Image editor and working through Facebook & Gmail. and getting few $ for each task through PayPal as Service & Goods, one buyer from France ordered a task at 120 Euro & paid 40 as a advance, after completing the task in 2 days she paid rest 80 Euro. everything was perfect up to here. after another 2 days I received a email from PayPal that, the lady raised a dispute that the transaction was unauthorized (means someone else used her PayPal) & till the investigation my PayPal showing equivalent negative euro's in account! however I m very sure that, I m basically scammed because the transaction done by that lady only, cause during this task we were in communication in Facebook, Gmail & PayPal, so I think it's not possible that a person is sleeping for 3 days & after 5 days of amount withdraw she wake-up & lodge a complaint. now that lady blocked me in Facebook so I can't communicate & it's showing her dirty intentions! I have given a snapshot of all communication to PayPal authority what do you think guys? I m feeling extremely down this time.

 

And this is why one should always remember that Paypal-payments are never truly yours until the arbitrary amount of time before complaints can't be made (reasonably) - ie, don't remove funds from Paypal until you're sure the customer won't complain. Unfortunately, Paypal tends to agree with the client, not the seller, but you can (and seemingly you have) shown everything to Paypal, and if you're lucky, they'll side with you, and you won't be out 120€.

 

Even if you have proof to have been scammed payment wont normally revert a claim. PayPal are hopeless at this.

 

Was the gmail account address exactly same to the paypal account address? That is really the only proof that you can possibly have. If it was not the same, then you cannot prove that you spoke with the owner of the account.

There is no way to truely prevent against fraud. You may need to charge 10% extra on all services, as 10% of your clients may be fraud.
Some people accept payments via bitcoin... but you might have fewer customers if you do this.

I really am sorry to hear about the chargeback. Paypal does not really care, everyone is at their mercy.

 

I set a dollar amount that would cause the fraud filters to have me manually approve a payment

I would request ID from those members , and only 2 out of 25 would send so i deleted the others and no chargebacks coz the payments werent ever approved.

 

actually paypal could cut fraud down to nothing by simply setting up a phone-pin verification...
so in order to get into your paypal account, then someone else would have to have 3 things:

1: your paypal email
2: your password to login
3: your phone to reply to pin for login...

so if someone has your phone, and is able to gain access to paypal, then there is
a high degree of certainty that the paypal owner gave access/permission to a 3rd party...

and pin verification system is very effective security, for instance, you can not login
to my bank account, unless you have, and know the above 3 needed items. You can not
transfer money out of my bank account unless you verify the pin via my phone, so even
if they hacked into my bank account, the pin verification would stop them before transfer...

another good backup paypal could implement is a 2nd login password...

I think all banking institutions should have 2 login passwords, and pin verification....

and paypal does not really care if it is customer fraud, nor do I feel
that they are doing anything to prevent customer fraud by adding these extra measures...

paypal could also analyze the paypal account in order to see if their
was any successful hacking activity on the account, and easily conclude
there was not, however, paypal is not really interested in protecting
merchants, so the system is flawed to only protect buyers, and you have
to go out of your way to prove otherwise....

 

People working at Paypal and at Credit Card company who deal with chargebacks tend to be minimum wage, not very intelligent, kind and they will nearly always side with customer, and not seller. You can have book of thousand pages worth of conversations between you and your client, but nobody is going to bother to read it.

If you NEED the money and cannot afford risk of not being paid, use Bitcoin. With a self hosted wallet. If that is not an option and you want better security, then request bank transfer to your account. Those are bit harder to get reversed. But anything you receive through Paypal can be reversed for 180 days, and it is not really your money until that expires.

Or use third party as mediator, like Upwork or Fiverr and understand that 20% they take is giving you extra layer of security, with hopefully individual who will be willing to waste hour reading your proof.

 

Yep... but instead of being useful, paypal is now doing something else. Depending on what is clicked when you pay for paypal, it saves it so that you do not need to login when you next pay. For shared pc's, or where a family and house visitors potentially have access to the same computer, it bypasses the need for a paypal password completely and can certainly lead to more accidents.

You cant say that people should password lock their home systems, but it should be expected that a banking platform improve its security measures, not remove them entirely.

Back to the original post, I think all autopayments should require some level of authoritization... EVEN IF, it was simply an email, with "click on this link to confirm you wish to continue this subscription"....

Sadly, not everyone is ready to send and receive funds using bitcoin.

BUT i hope all DP'ers can get a wallet, and get used to it, and perhaps put in 10usd.... and keep in mind, if you had put in 10usd just 7 years ago, it would be worth a mere $7+million today.