PayPal makes a mistake and the burden of proof is on me?!?

[rc792]

I recently paid an ebay purchase with PayPal using a credit card. I noticed that the amount charged to my credit card differed from the actual amount by $1.95. So I call up PayPal for the reason of discrepancy. I wasted 45 minutes of life getting a non-answer, all for a lousy $1.95.

Don't get me wrong. The PayPal customer service person was very nice and was trying hard to be helpful. And I understand they have a "playbook" they have to run through. But she couldn't give me an useful answer at all.

She asked me whether I recently changed my confirmed address: No. She puts me on hold. She returns, apologizes and asks me whether I recently added the credit card that I've used: No. I tell her I have used the same credit card since last year.

She puts me on hold. She returns, apologizes and tells me that $1.95 is PayPal's confirmation charge(?) for the credit card and will be reversed the next cycle. I tell her I've paid for 14 purchases from ebay on the credit card via PayPal since adding the credit card last year. Why is PayPal confirming my credit card all of a sudden? And why would PayPal tack on the confirmation charge on top of a transaction? Wouldn't the confirmation charge be a separate transaction?

She puts me on hold. She returns, apologizes and tells me that PayPal recently upgraded their system (which I took as admission of PayPal scr*wing up). Only way to get a refund is to fax my credit card statement to them and write a message explaining the situation. I tell her I am not going to fax my credit card statement containing information that is none of PayPal's business. She tells me that I can edit out sensitive information from the statement.

I tell her that I am not doing all that for a lousy $1.95. She says she understands but her screen shows that correct amount was charged. However, she implied that she was seeing the wrong amount as well but her hands were tied. I tell her that it was ridiculous that the customer has to bear the burden of proof and jump through hoops for an error made by PayPal. She then suggested that perhaps she can kick it up to a specialist who can look into the matter. I tell her to please do since I will put in a dispute with my credit card company if she doesn't.

She apologizes profusely for my inconvenience and we hang up. I find it absolutely asinine that PayPal cannot fix the error that it made. It does not make sense to me at all. I will give PayPal a couple of days to correct the mistake and I will simply put in a dispute with my credit card company. I don't have time and definitely will not jump through hoops for PayPal's mistake. 

[sandypurins]

When viewing my PayPal account activity during the time I added a new credit card and was required to complete the $1.95 confirmation procedure, I do not see a transaction for the $1.95 charge to my credit card. All I see is a transaction identified as "Bonus from PayPal" which credits $1.95 to my PayPal account balance.

Based on this observation, I would conclude that the $1.95 is for the PayPal confirmation procedure and it will be credited to your PayPal account balance within 30 days.

Here's the screen shot from my PayPal account...

[rc792]

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@sandypurins wrote:

When viewing my PayPal account activity during the time I added a new credit card and was required to complete the $1.95 confirmation procedure, I do not see a transaction for the $1.95 charge to my credit card. All I see is a transaction identified as "Bonus from PayPal" which credits $1.95 to my PayPal account balance.

Based on this observation, I would conclude that the $1.95 is for the PayPal confirmation procedure and it will be credited to your PayPal account balance within 30 days.

Here's the screen shot from my PayPal account...

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That was one of the first explanation that PayPal representative came up with. However, there are couple of problems with that explanation.

First, the credit card used was NOT a new card that was added. It had been added last year and had been used multiple times since and before and after the problem transaction. When I pointed that out, the customer service rep agreed and dismissed the explantion and went onto the next page in her "playbook."

Second, there is no charge or credit of $1.95, marked "Bonus from PayPal" or otherwise, anywhere in my PayPal transactions page or my credit card statement. The amount is the difference what the PayPal charged and what is showing in my credit card statement.

Example: PayPal transaction page shows that $95 was charged to my credit card. My credit card shows that $96.95 was charged from PayPal.

I am not sure if you can assume that $1.95 is the confirmation charge solely on the basis that the amount matches what PayPal typically uses as the confirmation charge. Even if it was, I would expect it to be a separate charge and not added on top of the amount charged from a seller.

[surplusdealdude]

I agree with you - if the amount is included, it won't be a confirmation charge, those are separately shown.

I would challenge the payment with the credit card and see what happens.

Perhaps warn the seller and explain the circumstances.  You might even tell him that you will cover him for the loss if it comes back on him if it makes you feel better.

[rc792 · Accepted solution]

You were right! I was wrong. PayPal did NOT make a mistake! It was my credit card company!

My credit card company charged me for foreign transaction. I didn't think paying a foreign seller through PayPal would be construed as a foreign transaction since the payment is to PayPal but my credit card company thought otherwise.

I was being nickeled and dimed by my credit card company, not PayPal. I finally scratched my itch!

Thanks everyone!

[KoalaBr]

It looks like this is a credit to your account not a debit.  If you have a Paypal Debit Card, it may be the 1% Bonus you receive for a signature transaction with that card.