Bogus chargeback claim

garen57
Contributor
Contributor

Hi, everyone. Have nothing to ask about at this moment, but need to went out before my heart explodes.

 Today, after almost a month of back and forth communications with PayPal, I had to face a very frustrating decision by them regarding one of my eBay orders. The buyer returned expensive sunglasses, because of a "wrong order". No problem, could happen to anyone, but before authorizing the return, I wrote to the buyer and told him that shipping and restocking fees will be withheld from the refund amount (eBay itself calculated the return amount to be $69.70, instead of $82 + $8 s/h that the buyer paid for merchandise. The glasses were returned to me and the buyer got his partial refund. Then strange things started happening: I received an email from PayPal notifying that a chargeback case has been opened by credit card issuer on behalf of this buyer for unauthorized purchase without his knowledge. I provided all available info (proof of refund, communication transcripts with the buyer) proving that the purchase indeed has been authorized. A few days ago, I received another note from PayPal, telling me that the buyer changed his original statement and now recognizes the charge, but wants the rest of his money back. I probably would have granted him that 15% restocking fee if he asked me, instead of going behind eBay's, PayPal's and my back to his credit card issuer with a false claim. I first contacted eBay to solve this problem and was told that it was a PayPal's problem. I contacted PayPal to learn from one of its representatives that - "we understand that there is no fault on your side, but we can't help you to  win this case", and got a suggestion  to block that buyer in my eBay account (?). Today I learned that PayPal not only issued the rest of the refund, but also charged me with another $20 chargeback fee. Where does this come from? Who is the smart guy behind this unjust decision? I understand, that the card company has his saying too in this case, but the guy made a bogus claim, been caught in the process and yet PayPal didn't stood up for the truth and returned all his spendings!? They even forced me to cover $8 shipping fees for buyer's impulsive order, plus charged me with $20 chargeback fee, which should have been already out of the picture since buyer acknowledged the purchase! I don't care about this lost amount very much, but I do care about my future financial relationship with PayPal and not sure if I can continue to trust them, when its decision makers do not pay attention to details and so miserably fail in this obvious case. BTW, what happened to eBay and PayPal relationship? Don't they respect each other polices anymore? Why PayPal doesn't accept eBay's initial decision on the refund amount?

Login to Me Too
3 REPLIES 3

DPCreations
Frequent Advisor
Frequent Advisor

It would have been so much easer to just settle the $15 full refund as you said you wold "if the buyer..."  Business decisions are much better than emotional stand-offs.

 

As for bogus, it is irrelvant to your deicision to refund or not.  The bogus issue was decide by the credit card company.

 

So, the credit card took the $15 by force and passed that along to PaPal with the $20 chageback fee.  PayPal has no powr over th credit card chargeback.  You had a change to settle it amicably, but you didn't.

As for the shipping cost return, I believe that is just part of eBay policiy which you should review before any more sales

 

If you had a direct merchant account for credit cards you woud be the one to work with the credit card company rather than PayPal doing it..

Login to Me Too

garen57
Contributor
Contributor

I would like to, but buyer stoped returning my mesages after reporting unautorised purchase and I was hoping that PayPal will look into the matter and resolve this justly. I was selling on eBay for last ten years and I always fully refund my customers and pay for return shipping when the return is bt my fault, but this is clearly not the case.

Login to Me Too

Whac-A-Mole
Frequent Advisor
Frequent Advisor

see if Ebay will cover the $20 fee.

In a chargeback,the cc issuer decides,so it decides you lose,Paypal does not have much of a choice.

 

Login to Me Too

Haven't Found your Answer?

It happens. Hit the "Login to Ask the community" button to create a question for the PayPal community.