Buyer Chargeback

misooooo
New Community Member

Hiya, 

So I've been selling virtual in-game products for a long time. Aug 2019, I've sold about $1000SGD worth of in-game products to a local buyer. Local buyer probably did not have enough money in the bank when he made the purchase, his bank filed a chargeback. After contacting the buyer, he refuses to take action with his bank, the local police aren't too helpful, and I'm -$1k in funds right now. Honestly, I've painstakingly dug through records of text messages exchanged between us and it shows the buyer's validation of the products being received by him.  But apparently, PayPal and the bank shares the same brain cell and somehow manages to side the chargeback in the buyer's favor. I don't want to pay 1k of fees just to cover someone spending out of their means, but I still want to retain my PayPal account. Any idea what I can do now?

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1 REPLY 1

sharpiemarker
Esteemed Advisor
Esteemed Advisor

@misooooo 

 

Sadly, there is not much else you can do about this particular case other than take the buyer to small claims court if that is even possible IF the buyer is located in different country. I don't even think digital goods is covered in your region, or really, most regions for that matter, under the PayPal Seller Protection Program.

 

You must consider if PayPal is the right fit for your business model. Also think about how many successful transactions you've had verses unsuccessful ones. Perhaps take a percentage of each sale for a self-insurance fund to cover the occasional dispute or chargeback in exchange for access to millions of PayPal users. Food for thought.

 


Kudos & Solved are greatly appreciated. 🙂
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