Customer fraudulently canceled cc payment after service rendered -- why do I have to pay for that?

[awanderer]

Hi Guys

I offer an airport pick-up service through my website. A woman ordered the service and then when she arrived at the airport left with a random cab driver who had somehow convinced her he was us (after she showned him our emails and pp receipt).

She didn't call or email me before leaving with this stranger. Meanwhile, I was at the airport with my driver and a sign with her name on it but did not see her. 

Turned out the man conned her and ended up charging her far more than the going rate. Afterward, I spoke with her on the phone, comforted her, sent her the emails I had sent her at the airport (she did not have a local number, so there was no way to call her) and offered to go with her to make a police report. 

She took the same service I offer to return to the airport at the end of her trip (although her traveling companion paid for it), so she knew it was legit. 

When she got home she canceled the payment through her credit card. I still had to pay the cab driver, gas and tolls. I am sorry what happened to her but do not feel that I should have to pay for someone else's lack of street smarts. 

I sent Paypal all the evidence which made it clear I was at the airport -- a picture of the driver in front of the incoming flight board, and the numerous emails I sent her at the airport asking where she was. In the emails she describes how she left with the random cab driver who tricked her. 

In the end, a PP rep told me on the phone I would be reimbursed -- I spent many hours sending and resending the evidence (b/c it seemed the left hand didn't know what the right hand was doing) waiting on hold (from overseas) and talking to PP reps.

Now PP tells me I am not being reimbursed. Are the reps permitted to lie to customers? It worries me that customers can commit fraud by canceling payments via their cc company, it makes PP feel insecure for a business owner. How can I get the money back? Thanks

[DPCreations]

There are risks in using PayPal for services.

PayPal customer service reps may give some opinions but don't have the authority to make decisions on refunds/charback.

All you can do is review the PayPal seller protection poliicies to see if you have complied with ALL aspects.  If you have, then you should prevail; if not, then you won't.

[awanderer]

Thanks, apparently PP seller protection doesn't cover services. 

The rep said unequivocally that I would get the money back, it was not stated as an opinion. 

I understand there is an inherent risk, but having to pay for someone else's stupidity should not be one of them! 

What bothers me more is that I spent hours on the phone (much of it on hold) paying international calling rates, and had to send the documents over and over again because they said they didn't receive them (there were problems with the pp website -- it doesn't seem to like old computers). 

PP really strung me along with promises because it was quite clear cut for anyone who looked at the evidence that the charges shouldn't have been refunded. Pp said that the cc company had the last word. So business owners beware: any customer can cancel payment through their cc company with no consequences it seems. 

[DPCreations]

When it comes to credit card payments and chargebacks, credit card banks to have the last word as PayPal is only the merchant account to process the payments.  When it is a chargeback by a buyer through the credit card company, PayPal can only relay the information provided by the seller; PayPal is only the "middle man" in thise process. 

Here's were PayPal seller protection comes into play.  If you comply with all of PayPal seller protection policies, PayPal can then refund money back to you from their protection funds.  This is where compliance with PayPal seller policies is important.

As a way to avoid the "middle man" issue, you could sign up to have your own merchant account with FirstDat or another credit card processing company; then you would be arguing your case with the chargeback directly.