How do chargebacks work when running a marketplace?
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Hi there,
So to my make case simple and brief. I am setting up a marketplace where buyers can purchase something from sellers. Those funds are transferred directly to the seller's own PayPal account upon purchase (we as a marketplace don't take any % nor does the money first go through our PayPal business account). This brings up the issue of a chargeback. If a buyer is technically just sending money to a seller's personal account when they purchase something, what would happen if they filed a chargeback? PayPal would normally freeze the amount in dispute, but we as a marketplace don't hold any money in our Business PayPal account and this would mean that PayPal would freeze the amount in the seller's own personal account no?
I could use any and all help...Thank you.
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