Where Did The Money Go?

[mgl123]

I accidentally filed a false claim with my bank because I couldn't recognize PAYPAL *MARKETCONNE on my bank statement. Apparently, I do recognize it now. My bank deposited me $229 to my bank account on December 6th. However, the $229 was also taken by  PAYPAL *MARKETCONNE from my bank account on December 6th.

Now the merchant, Mandy Fard, is saying Paypal removed the $229.00 from her account, and they charged her an extra $20 as a chargeback fee. She has contacted PayPal this morning to appeal your decision. She will supply copies of this communication as well to PayPal, to be sent to my Credit Card, to show that I was well aware of my purchase.

I do not understand this. The money $229 was already taken off my checking account. Why is the money taken out of her account if I have already paid the amount? She is asking me to pay $229+ $20 chargeback fee which I cannot pay the $229 because I have already paid the amount. The money was taken out of my account on December 6th. Please return the $229 to her. My card was already charged $229 that I have already paid on December 6th.

[angelleye]

When you file that dispute with your bank, and they give you the $229 credit, they take that from PayPal.  

As such, PayPal then goes back to the seller and takes it from them to cover it, plus the additional $20 chargeback fee.

So follow the money path.

1.  You pay $229 to seller.

2.  You then file a dispute with the bank.

3.  The bank gives you $229 credit.

4.  The bank then takes this $229 from PayPal to cover the credit they gave you.  At this point, the money you paid has been returned to you.

5.  PayPal takes the money back from the seller to cover what they had to pay, and tacks on the $20 chargeback fee.

6.  To complete the circle, you would need to send the seller their money again, because it has been returned to you and neither they nor PayPal has it anymore.  You do.

Did this show up in your PayPal Resolution Center at all?  If so, I would reply there if you can and let them know about your mistake, and that you would like to cancel the dispute.  They should be able to work with the bank to reverse everything.  This would mean the bank would take the $229 again from you to give it back to PayPal, and PayPal would then be able to give it back to the seller again.  The seller would still be out the $20 chargeback fee, though, unless you cover it for them separately.

[mgl123]

What do you mean that "the bank then takes this $229 from PayPal to cover the credit they gave you.  At this point, the money you paid has been returned to you." I did not receive any credit from PayPal. My bank credited to money back to my account, and on the same day the money was paid to the merchant. It is on my bank statement.

You're saying:

1. I paid $229

2. The bank credited me the $229

3. Paypal took the money back immediately

4. I have to pay again?

When Paypal took the money back immediately, it means I already lost the money. Why do I have to pay again?

[angelleye]

You didn't lose the money. The bank gave it to you. I don't understand why you're ignoring that point.