Chargeback is 100+ times greater than original charge

[frenchie2722]

I currently have a chargeback that I'm happy to refund, it's for a ($5) monthly service that the customer forgot about or didn't want to take the time to cancel.

In the chargeback details it says (which is accurate):

Transaction Amount: $5.00 USD

But it also says (which is crazy):

Chargeback Amount: $531.57 USD

I'm unsure what to do in the "Resolve Chargeback":

() Provide Shipping Information.
() I can provide evidence other than proof of shipment.
() I refunded the payment for this transaction.
() I will accept liability for this transaction.

I would prefer to "accept libility" give a full ($5.00) refund and move on. But if I select the last option will it really take $530+ on a $5 charge?

[PayPal_Erica]

Hi Frenchie2722,

Thanks for reaching out to us here! I can certainly see why you would be concerned with this! I believe I know what happened here.

If a buyer has a negative balance in their account at the time that an automatic payment is due they will see both the amount of the automatic payment and the negative balance amount charged to their account at the same time. If you select the option to accept liability for the chargeback you will only be debited the $5.00 that you received from the buyer, not the full chargeback amount.

I hope this helps!

-Erica