I was wondering if there's any limit for the buyer to start a charge back within a limited duration? And suppose a buyer claims a chargeback, and the seller does not have any money in the account, what happens next? Paypal provides 15 days to both the parties to resolve the issue, what if the seller does not have any balance in their paypal?
As you know, the chargeback is an option issued by the bank to its credit card holders and supersedes any decision by Paypal. The typical window for a chargeback is 180 days from the time of the transaction. This option allows customers who paid for products or services which they have not received or as they expected it or if the customers' credit card has been misused or stolen without their permissions. It would be the onus of the seller to prove that the products have been shipped to the customer's actual address. So just get ready all shipping documents and sales documents when someone claims a chargeback against you. In the case of Paypal, if a buyer claims a chargeback and the bank grants it, it would be taken off Paypal's own bank account and in turn, paypal would claim the money off your existing balance. If you do not have the existing sum, your account would go into negative territory and be limited (in which case, you cannot use your account until you top up the difference). In some cases, paypal may sent collection agencies to your home to 'force' you to pay up, they probably would do that if the sum in question is high.
If the buyer claims a charge back and you have 0 balance, then your balance goes into negative. As soon as you have funds, they will be used to pay your debts. zAp