Chargeback fee when buyers credit card was hacked, I'm out of pocket when I wasn't at fault

[5326johnp]

I sold a keyboard for £90, but the buyer told me his credit card had been hacked.  I voluntarily refunded the money, but later had a £14 chargeback fee taken from my account.  I was in no way at fault in this, but I am out of pocket.  I am finding it impossible to get a straight answer from paypal, at one point I was advised by them to contact the buyer (which I can't do), and the rest of the time they send me a standard 'dispute is closed' message.

Looking at this forum I am not the only person this has happened to.  Paypal needs to do something to stop this happening, it's basically theft.  If you are a seller, and the buyer tells you his card was hacked, and you refund the money, there is absolutely no justification for either paypal or the buyer's credit card company taking further money from your account.  Be aware people - this could happen to you, and if it does Paypal are utterly useless and unhelpful in resolving it.

[sharpiemarker]

@5326johnp 

Because the buyer filed a dispute, not through PayPal but through their financial institution because maybe their PayPal account, if they had one, was not used but that the merchant processes payment via PayPal and so PayPal is obliged to handle the chargeback case and hence they charge the fee. If your transaction met the requirements of PayPal seller protection, PayPal would cover your loss and the chargeback fee instead of just accepting liability.  But some have claimed that one has to win the chargeback case which is decided by the financial institution, in order to be covered. If that was the case, then what's the point of the coverage then. Since you sold a physical item that probably needed to be shipped, you'd provide PayPal proof of delivery or proof of postage to be covered for unauthorized payment chargebacks.

Read the seller protection program to see how you are or not covered. Most of the time this happens is when people aren't aware of how the program works or maybe the value in question is too high and PayPal just decides they don't want to cover it, or the transaction involves an item not covered like vehicles or digital goods for instance.

11. Seller Protection Programme

[5326johnp]

Hi Sharpiemarker,

thanks for your reply.  In this case I messaged the buyer to confirm that I'd received the payment (as I always do), and they replied to say they knew nothing about the transaction - so the item was never shipped, I waited while the buyer contacted their credit card company (you're correct, payment was by card not by paypal), then refunded the money when they contacted me.  However, just because there are weasel words hidden in the seller protection program doesn't make it right and I should be able to claim back the chargeback fee.  I have no way of contacting the buyer, or their credit card company, outside of paypal.  As I am not the only person who has posted about this issue paypal should do something about it, but choose not to.  In fact they just send me standard 'dispute is closed' messages, when they must have heard from people about this issue previously - it seems they are deliberately 'misunderstanding' my messages.  Come on paypal, shape up - as customers we are charged enough for your services without allowing credit cards to rifle our accounts because of somebody else's illegal activity.  Shameful behaviour.