Extra fees for refunding a dispute

lucys_mom
Contributor
Contributor

Just wanted to let everyone know that there is an extra $20 fee per transaction to refund a dispute. 
I did not know that or would have disputed the 2 claims. 

I had a online student take 3 classes online. Then a few months later, she came back and signed up for 2 more classes. Then 2 months later, she disputed the payment claiming her credit card had not been authorized to purchase the classes. We have a no refund policy since we had people come in, copy and then ask for a refund in the past. However, given that we provide services to people with service dogs, we also have some leeway if people have to pull their dog from training or have significant health issues that stop them from training and can refund or defer the expiry date on the classes to give them more time. 
As soon as I received the dispute, I sent her an email asking is we could help. No response for 5 days, so I decided that rather than risk getting a bad review to pay it back. Imagine how surprised I was to be charged $20 per transaction for doing a good thing!

Now I wish I had disputed it as we had plenty of proof that she had taken previous classes with us and only she would benefit from purchasing the classes with her credit card. No-one else can see the class material. We issue e-mail receipts for each class and in several places on our website we state their is no refund, including the registration page. This was her way to get around it.

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PayPal_Jae
Moderator
Moderator

Hi @lucys_mom,

 

I'm sorry to hear you had a tough situation with one of your buyers and apologize you were surprised by the $20.00 fees. This only occurs when a customer contacts their financial institution, instead of PayPal directly, to file a chargeback.

 

In a chargeback dispute, the decision is made by the card issuer. There is a fee we incur from the credit card company that is passed along to you at a reduced rate. A $20.00 USD fee is assessed to cover our cost of processing the chargeback.

 

 Please note that the fee is waived if all requirements of PayPal Seller Protection Policy have been met.

 

- Jae

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PayPal_Jae
Moderator
Moderator

Hi @lucys_mom,

 

I'm sorry to hear you had a tough situation with one of your buyers and apologize you were surprised by the $20.00 fees. This only occurs when a customer contacts their financial institution, instead of PayPal directly, to file a chargeback.

 

In a chargeback dispute, the decision is made by the card issuer. There is a fee we incur from the credit card company that is passed along to you at a reduced rate. A $20.00 USD fee is assessed to cover our cost of processing the chargeback.

 

 Please note that the fee is waived if all requirements of PayPal Seller Protection Policy have been met.

 

- Jae

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lucys_mom
Contributor
Contributor

Thank you for explaining! That helps for next time!
If they have disputed it via their financial institution, we will definitely fight it next time, if we are in the right. It is sad when people abuse the system!

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