Refunding after someone files a dispute?

Discussion in 'PayPal' started by YMC, Apr 21, 2011.

  1. #1
    If someone files a dispute and you refund the amount rather than deal with the jerks, does it in any way harm your rating on PayPal?


    Here's the background...Someone purchased advertising on one of my sites that allows them to post a banner on my site. I emailed them within hours of payment that I would require an image and gave them the specifications for the image size. I never heard from them again - not in answer to my email or on the contact us form on the site. Today, 15 days later, they filed a dispute. Rather than mess with these people, I would like to just refund their money and tell them to get lost but how will that impact my account?

    Yes, they paid for something they have not yet received but it is their fault that they have not received it. Any suggestions? I've not had to deal with this before.
     
    YMC, Apr 21, 2011 IP
  2. contentboss

    contentboss Peon

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    #2
    AFAIK once a dispute is filed, the funds are frozen.
     
    contentboss, Apr 21, 2011 IP
  3. YMC

    YMC Well-Known Member

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    #3
    Yes, the funds are frozen. I had the opportunity to post a reply to their complaint but it also looks like I have the option to simply refund their money - which is what I'm leaning towards doing. My worry is that will be somehow listed as a failure on my part and negatively impact my ability to do business going forward.
     
    YMC, Apr 21, 2011 IP
  4. Bohra

    Bohra Prominent Member

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    #4
    I Dont think you will face any problem as such as even paypal is aware that disputes do happen but make sure this doesn't happen continuosly
     
    Bohra, Apr 21, 2011 IP
  5. YMC

    YMC Well-Known Member

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    #5
    This is the first time in the 6 years that I have been using PayPal that there's been any sort of issue. I'm actually quite angry that the person made no effort to contact me first as I do everything I can to make my customers happy.
     
    YMC, Apr 21, 2011 IP
  6. Card

    Card Well-Known Member

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    #6
    Yes,Refunding the money creates negative rating in mind of Paypal against you.Giving Refunds are worst than chargebacks and disputes :)
     
    Card, Apr 21, 2011 IP
  7. YMC

    YMC Well-Known Member

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    #7
    That's what I was afraid of.
     
    YMC, Apr 21, 2011 IP
  8. geekology

    geekology Well-Known Member

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    #8
    YMC - If you're in a good standing with PayPal, just tell them about the issue and tell them that I don't want to fight this case rather I am fine with refunds. [But I don't think at this stage you will have an option in PP UI to refund the amount to the chargeback filer? Do you?] In case not, get in touch with Paypal folks at @AskPayPal on twitter or call them up if you're a business.

    I had a long discussion about PayPal "refunds vs chargebacks" on another forum and I can tell you that refunds is not at all a problem. It's excessive chargeback that you should be careful about.

    All the best!
     
    geekology, Apr 21, 2011 IP
  9. Bohra

    Bohra Prominent Member

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    #9
    yaa plus how can refunds actually be a problem many companies have policy to refund the unsatisfied clients within 30 days neways so i dont see much on an issue and nothing to worry about
     
    Bohra, Apr 21, 2011 IP
  10. sweatlana

    sweatlana Well-Known Member

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    #10
    This is not harm you in any kind even if you dont refund to seller.
     
    sweatlana, Apr 22, 2011 IP
  11. Crimebuster_of_the_Sea

    Crimebuster_of_the_Sea Notable Member

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    #11
    Just send them a refund - it won't in any way ruin your Paypal rating (I'm not even sure there is one). There are hundreds of businesses online who must refund their clients even if it's through no fault of their own. If you refund, you'll also get a message from Paypal asking you how they think they handled your case - you can add your feedback there.
     
    Crimebuster_of_the_Sea, Apr 22, 2011 IP
  12. YMC

    YMC Well-Known Member

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    #12
    Thank you everyone for the replies. Again, they did not respond. It seems fairly obvious that they either had buyer's remorse or simply wanted to mess around. I spoke with a PayPal rep and they confirmed that there would be no issues so I refunded the money. Guess I should consider myself lucky that in 6 years this was the first real jerk that I've encountered.
     
    YMC, Apr 22, 2011 IP
  13. contentboss

    contentboss Peon

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    #13
    Yo YMC, I'd just refund him and have done with it. It won't impact on your Paypal standing, in fact, they expect a certain amount of refund requests on a typical business Paypal account. It has to get pretty hairy before they contact you about it. All businesses suffer refunds, or 'bad' customers. Don't forget to enable the bit of your shopping cart that checks for users on the various web-based 'bad customer' lists - you can stop most of these people before they get anywhere near your checkout.
     
    contentboss, Apr 22, 2011 IP
  14. contentboss

    contentboss Peon

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    #14
    forgive my frankness, but that's bollocks, as my account handler confirms. You'd have to be up in the double figure refund %s before they would even flag it up.
     
    contentboss, Apr 22, 2011 IP
  15. YMC

    YMC Well-Known Member

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    #15
    Didn't know this existed. What software or plugin are you using that checks these lists? Where are these lists?
     
    YMC, Apr 22, 2011 IP