Fraudulent chargeback

[HardworkingMom]

Ok so i sold a ton of product to an online store more than five months ago. The buyer contacted me over a month after they received the product saying they were all damaged. I asked for evidence and he provided none. I sent a return label and he did not return the product. So then here we are five months later and i get a chargeback notice from paypal for the total amount. $2,500. So I got to the store's website and low and behold they are on Etsy selling the products with images and there are no damges! To top it off there are several customer reviews of the product that anyone can see and they are all five stats raving about the products all the way back to december with orders as recent as May 1st! 

So I contact the people that bought them and they confirm again that the items were in no way damaged at all and they did not return them. Their own customers are saying this!! 

Ok so now I found out that because I used virtual Terminal I am not protected by seller protection. This is not right! This IS VERY CLEARLY fraud! I'm finding that paypal does not protect businesses. This is so rough for a small business like mine to be out that kind of money and also be out the product. It's not right nor fair. Sadly if I lose this dispute I will no longer use paypal and I have been a loyal customer for many years. 

Do you guys know of anything I can do? How could a bank just charge money back and not require the buyer to return the goods? Obviously he can't anyway because he sold it all. Five months later??

[kernowlass]

@HardworkingMom

Not sure what country you are in as you are posting on the UK forum but talking in dollars.

A chargeback is done directly via the buyers credit card company and they are the ones that make the decision.

HOWEVER if you are in the UK you have the right to take the buyer to the small claims court if you can prove that the items he is selling are the SAME as the ones you sold him and that when he received your damaged ones he did not source another supply??

Sometimes just contacting the buyer and stating you will be going down that route makes them reconsider their actions and they may pay you again............  if you don't ask you don't get.

The small claims court in the UK is pretty easy and you can do it online. HOWEVER personally I would do a snail mail letter and not an email stating ALL your facts and that unless you get immediate payment you will be filing a claim in the small claims court.

[LaizaVenice]

I agree with Kernowlass.

Sending the message through snail mail will actually allow you to use it on the small claim court.