Paypal misunderstood a transaction as unauthorised transaction and reversed a payment at our expense
Hope someone can shed some light on an issue we recently had and help us resolve it.
We have been using paypal for more than 5 years for our online retail payment gateway. Recently, paypal misunderstood a transaction as unauthorised transaction and reversed the transaction without notice. The items were on its way from interstate and were delivered the day after paypal reversed the transaction.
Instead of opening a dispute so we can participate in the resolution process and provide proof of dispatch, the dispute was raised only to reverse the transaction. Customer emailed a week after items were delivered and told us he contacted paypal to reverse the transaction because he have not heard back from us after his purchase. We believe this was the reason paypal misunderstood it as "unauthorised transaction".
Here's a snapshot by dates:
20th October: Customer made a purchase
28th October: Customer emailed twice on the same day to enquire about his delivery, once in the morning and another less than 4 hours later
29th October: Paypal reversed the transaction in the morning
30th October: Items delivered
We then contacted paypal to enquire and ask why the usual dispute resolution wasn't carried. We were told it was because the customer's address wasn't available on the transaction. We were then told we aren't eligible for seller protection. This puts us at risk of not receiving payment for goods delivered. We are confused with the eligibility criteria and the dispute resolution process and also concern that this will happen again in the future.
Would appreciate it if you could share your experience and help us understand and resolve this. Thanks in advance.