Paypal does not protect sellers agains chargebacks

[AngelsBridal]

I own a custom made bridal business. All of my dresses are handmade and made to order. I suffered through a few charge backs last year. One, a bride found a dress at the goodwill,,,,told me so, then filed a chargeback because she wanted her money back for the dress I spent months on because she found a much cheaper one last minute! Another because a bride didn't like the color on her after approving the dress and color before shipping! And this last one after a buyer agreed to all shop policies, signed a CONTRACT agreeing to a no return no refund policy, the dress was exactly like she ordered she approved final photos, she ordered the dress in June, received it in Sept, her wedding was in November, then she forced the chargeback in December. This is OBVIOUS FRAUD but in not one of these cases even having the buyer sign a contract thinking it would protect me, did paypal protect me against the chargeback. It's ridiculous. Can you please tell me what the ******* PayPal consideres a wrongful chargeback if that is not a wrongful chargeback?

But get this,,, I filed a dispute for an item not as described when a seller on Ebay plainly listed professional photos of an item that she did not make then hodge podge put together something that looked like a kindergarten student tried to assemble and my claim was settled in favor of the seller???????????????

Is there any kind of payment or card processing company I can go through other than paypal who will protect me against chargebacks?

I have been using paypal for several years,,, I have given them enough of my money for NOTHING!

Oh and the buyer still has the dress.

I read on forum for a credit card company, a rep for the credit card company stated that Paypal get more in fee's if they find in favor of the credit card company instead of the seller. The card company pays them a fee and the seller has to pay a fee... so it's not a matter of protecting their sellers from rip off artists,,, it's all about the money!

It's very obvious is most cases when the buyer is trying to defraud a seller.. and paypal does nothing about it but allow it to happen.

[PayPal_Kevin]

Hello AngelsBridal

Welcome and it definitely sounds as if you have had your share of bad experiences so your frustration is understandable.  You raised some good points and I am happy to help clarify some of the concerns you had.

PayPal does offer Seller Protection for certain types of chargebacks such as Non Receipt and Unauthorized.  On these types of chargebacks, if the transaction is listed as Seller Protection Eligible and the seller follows all the requirements, then regardless of whether we win the chargeback or not, you as the seller will get to keep the money and we will take the loss if there is one.

In your situation it sounds as if you have received a Merchandise chargeback which is the equivalent of a PayPal Significantly Not As Described claim and for these there is no automatic Seller Protection.  You may still get to keep your money but it would only be if the chargeback was found in your favor and in many cases they will be.  A big misconception is that PayPal makes the decision in a chargeback and that is not the case.

Chargebacks are decided by the card issuer themselves and the only role that PayPal plays in these is an information provider.  We receive the chargeback and then we ask for information from the seller and determine if we have enough to try and fight it.  If we do then we will dispute the chargeback and once that is done we have to wait for a final decision by the card company.  Chargebacks are expensive for PayPal to deal with so I can assure you that the information you were given by the card company representative is incorrect especially as we have nothing to do with the final outcome.

I realize that even with this information you have still had some less than desirable experiences and for that I am truly sorry because it sounds as if you were doing your very best to take care of these buyers.  Please let me know if you have any further questions as I am always happy to help.

KB

[xapril07x]

i am sooo sorry for your financial losses and frustration, as i am a seller also. your situation realy sounds like it **bleep** big time! seeing as though there may not be anything more that PayPal can do for you via online, my advice for you would be to call PayPal and try to argue with them about your cases, see if that gets you anywhere, if not your best bet would be to hire a lawyer, or legal consultant. that way SOMEONE can fight in your favor of these bogus buyer purchases! good luck!

[xapril07x]

hey, have you seen, or are you familiar with this? - this should be helpful to you about chargebacks: https://cms.paypal.com/us/cgi-bin/marketingweb?cmd=_render-content&fli=true&content_ID=security/char... look under 'Fighting Chargebacks' or 'Chargeback Fraud'

[Darkauthor]

I feel your pain. I haven't been hit with chargeback scams (yet) but i have been hit twice in two months with account freezes due to "suspecious activity". Namely, withdrawing money and accessing my account from my cell phone. Both times they asked for numbers to validate my identy. Both times they refused the numbers I gave them, froze my account, and I had to fight with an operator to get things cleared up.

I HATE paypal and I'm not the only one. There are many websites dedicated to paypal scams and horror stories.

[letsgo]

Why does the seller get charged with a $20 fee for someone opening a chargeback on me?? Makes no sense, I didnt open the chargeback???

[PayPal_Kevin]

Hello letsgo

Welcome.  The fee that is charged to the seller in a chargeback is due to the fact that PayPal is charged a fee by the card issuer whenever a chargeback case is received.  Unless a seller is covered under the Seller Protection Policy, this fee is passed on to help cover the costs of processing the chargeback.  I realize this can be frustrating and my best advice is to always do your very best to work with a buyer upfront to help minimize the chance of a chargeback being issued.  Thank you for your participation and have a good day.

KB

[poppyrife35]

It is not only the larger sellers who receive no help from Paypal.

In November I sold items to a stephenjohn755  a small amount of charity pins.He claimed that he did not receive items and they were incorrect? Ebay investigated and saw in my favour.

I then received a chargeback claim from a Llanberismike755 claiming misuse of his card.

I spoke to Paypal and they assured me that it was not possible for one buyer to use another buyers card to purchase items when that card was not registered to the buyer.Fact this is what happened

The chargeback continued and paypal following another telephone conversation with me confirmed that they supported me and would fight the case.

Llaberismike755 then changed the chargeback claim  to a non receipt of goods,pardon he was not the buyer.

I again complained by phone and all I could get out of the operator was we need proof of posting,why he was not the buyer?

Last week he was granted chargback due to non receipt of goods.

Paypal did not fight the chargeback as they felt there was no case

Their email stated charge back of £10.70 was removed from my account no mention of the additional £7.00

To summarise Buyer stephenjohn755 was the buyer

                                        Llanberismike755 was the card holder

                                        Llanberis mike755 receieved the chargeback

Oh surprise surprise they live at the same address.!.

Result they have the goods,the money and my Charity loses out and I get a negative feedback.

Question Why did Paypal accept the payment.

[jay_tucker77]

I sold a 20 year old Porsche with over $15k in recent service receipts for $15000 on ebay, the buyer forced me to take payment via paypal even though my ad stated that I would only accept deposit via paypal. Stupid me accepted it, the buyer received the car in october, then in december filed a chargeback claim saying that the car was "significantly not as described" they claim that the car has an oil leak (its a 20 year old PORSCHE, they ALL leak) Would not have the car looked at by a mechanic, have not made the car available to me and never attempted to resolve it with me. Now paypal says its beyond their control. BULL PUCKEY, The car was EXACTLY as described, actually better than described! Now I am out $15000.00 and a Porsche convertible????WTF??? PAYPAL HAS NEVER ONCE PROTECTED ME AS A SELLER and I have done over $400,000.00 in transactions with PERFECT Feedback. PLEASE TELL ME WHAT PAYPAL DOES TO PROTECT ME, THE GUY THAT PLAYS BY THE RULES???

[BigKahuna97]

To the last poster, if this is true Jay I would not be talking with PP......I would be talking with the police.  If the amount is true at 15k this should be felonious so either the guy gives you back your money, car, or he receives a nice new cot at county lockup.

Hope this helps.