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Chargeback Pre-arbs and Arbitration


Chargeback Pre-arbs and Arbitration



Following on from - I've since faced another issue, and surprise, it took me back to my same post on google as number one!


So, here's my question.


What is PayPal's selection process as to which cases they take to arbitration, and which they do not? Is it only the cases that PayPal will financially loose out on? Because I have three cases due to "missing refund", easily defend-able, we don't permit refunds for services rendered and would never promise a refund. However, the customers card company found in the buyers favour.


My experience with chargebacks? Well, I tried disputing a charge with my card company and was refused because the website of the merchant said I had to log my request via their website rather than by email, and because I didn't follow their communications process flow, my card company refused to proceed with my chargeback case in response to the merchants defence. Then I get a chargeback case like above, and its like meh.


Second scenario, PayPal incorrectly charged me €18 in a foreign exchange fee when eBay advised they were billing in euro's, eBay confirmed this, but PayPal did an unauthorised dynamic conversion. I had to take it to chargeback, and guess what? Not only did they decline, it was taken to ARBITRATION! I had to wait a year over just an €18 refund, which I won.


So, I have three cases of $20 with overwhelming evidence the guy used and rendered services, communication history, and copies of our T&C's and refund policy, yet their card company is obviously not as strict as my own, and PayPal when I asked them to take it to arbitration, basically said nuhu. Infact the email says "With any charge back the issuing card company will make the final decision and unfortunate PayPal, or any other payment processor, can not change that decision." - not when it goes to Arbitration, which is what I asked.


What's going on?