Completely and utterly scammed by Paypal.

[Anonymous_User]

 Me being scammed by PayPal, where they charge me $20 for each small chargeback that are all less than $20 themselves.

Hello, I run a small online business where I do various programming and other online services jobs for people. Recently, a customer of mine who I have talked to before decided he wanted to rip me off by taking my services and lying to paypal that every payment he ever made to me was unauthorized. Not only did paypal believe them (which i would have been able to get over eventually because they were small jobs as you can see by the prices totaling up to only $31) but they charge ME! Why is this my fault!? And why do I HAVE TO PAY $100!! IN FEES!? What sort of con game charges me (the seller) $100 because someone disputed a total of $31. All of my jobs that I do are small, It will take me weeks to get $100 for these fees (and what if they also dispute the payments putting me into even more debt? should I not be using PayPal because it is services I offer? I have been loyal to PayPal for over 5 years now, and over 30k has come in and out of my account as I run my small business), what the hell is going on here? this is utterly repugnant!

[kernowlass · Accepted solution]

@Anonymous_User

Sounds as if the buyer did a 'chargeback' via their card issuer.

In that scenario the card company make the decision and all paypal can do is pass on any information on your behalf.

If the card company find in favour of their client then you have to refund AND they charge you their processing fees.

If you were covered by paypals seller protection then paypal would have reimbursed you those fees BUT as there is no paypal seller protection for virtual  / digital services then you were not covered, you do those transactions at your own risk unfortunately.