PAYPAL ZERO HELP IN AN IRREFUTABLE CASE

ukfan4sure
Contributor
Contributor

So, I sold a $15 item a while back.  The item was delivered (proof with a USPS tracking number), and the buyer actually left positive feedback on my seller feedback profile.  About a month later, I get a PayPal notice that this person had filed a chargeback with his CC issuer stating he did not purchase this item.  So, PayPal holds $35 from my account (their $20 chargeback fee and the $15 for the item) until they can make a ruling.  They ask me to submit proof of the delivery of the item and any other photos or documents to support my claim.  So, I send them a tracking number along with jpg's of the ebay sale showing his username and his username again on my eBay profile page where he left positive feedback.  Easy-Peasy, right?  NO... PAYPAL DENIES MY CLAIM AND TURNS IT OVER THE THE CARD ISSUER!  Giving discretion to the CC issuer is the kiss of death to your money!  So I call PayPal, and a barely English speaking call-center person goes around and around with me, never helping or really trying to understand my debacle.  Or even looking at the evidence I submitted.  She just kept saying it "was out of their hands now".  I was really blown away, and now believe this is SOP for PayPal because they stand to make money with the deny, deny, deny approach.  Think about it, if they deny, they get a free $20 fee, and do not have to litigate any further.  For them, you losing is a win-win for them.  I am soooo frustrated.  I cannot imagine if it had been a $500 item.  I would be a hell of a lot more furious than I am now! 

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3 REPLIES 3

sharpiemarker
Esteemed Advisor
Esteemed Advisor

@ukfan4sure 

 

Who you sold to may not be who paid. The person could have had their accounts hacked, card info or card stolen used at guest checkout or don't recognize charge, or they family member use their account; all kinds of madness.

 

The account holder went direct to their financial institution when they saw a eBay handle and PayPal next to the charge. It's up the bank. PayPal doesn't give discretion to the bank. When chargebacks happen, the buyer's card's bank duke it out with PayPal's merchant bank. PayPal submits the information you gave them and yes, it's in their hands, sadly.

 

https://chargebacks911.com/credit-card-chargebacks/

 

I mean you should be protected since you have proof of delivery and the CB claim is for unauthorized payment. On the other hand, in the Seller Protection terms, it says PayPal 'may' cover you. I dunno. Kinda puts you off selling, this dark side of eCommerce.

 

By what you're saying it seems that they think you have a good case of winning so they denied your claim for protection? Perhaps that's the angle. Just have to see who the buyer's bank rules in favor for.


Kudos & Solved are greatly appreciated. 🙂
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ukfan4sure
Contributor
Contributor

What's funny is the eBay username is the same as the person's name it was shipped to.  Also, I emailed the buyer (something I didn't mention above because it seemed irrelevant), and he said he had a bunch of fraudulent charges and he couldn't remember what mine was.  When I refreshed his memory, he admitted it was a good one.  He said he contacted his bank to ask them to clear my payment as it was "good".  I figured that would be the end of it and I'd get my money back along with PayPal giving me the fee back.  Whelp... nope.  This was a scam pure and simple.  How could this person's PayPal address and shipping address all print out the same and him not get the item.  Also, how would anyone but the appropriate eBay user later use that account again to leave positive feedback on the transaction? 

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ukfan4sure
Contributor
Contributor

I think through this entire thing, what is most devastating is the fact when you conduct commerce through eBay and PayPal, you expect that these are legitimate users conducting legitimate business.  As a seller, how in the world are we supposed to know if they aren't?  EBay and PayPal are your only links to the seller, and if THEY don't know, how are we as sellers?  But in the end, the seller still loses out like it was OUR fault.  It's insanity at best propagated by the institutions that stand to gain everything and lose nothing.  Play by THEIR rules or don't play at all.  They hold ALL the cards. 

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