I had my first chargeback and I learned more from Chase bank than PayPal. Here are some tips to help sellers protect themselves from chargebacks and some things you can do if you have one.
Point of sale transactions are not covered under Paypal seller protection.
The buyer has 120days to dispute a charge so a merchant really doesn't have their money until after that time period.
Don't swipe charge cards anymore. Only accept chip cards. I was told by Chase Chargeback division that a merchant who swipes a charge card will be on the hook for the chargeback no matter what proof you have.
For those of us who are in the craft business and are vending at craft shows.
When doing point of sale transactions: Write down the buyer's address, phone, and last 4 digits of their credit card, 3 digit credit card code and confirm their identity on their driver's license. Write the transaction ID on this in case a future chargeback occurs. Write down what was purchased.
If the chargeback is filed contact the buyer immediately if you have their contact information.
Your Recourse against the buyer: You can file a theft report with the police and you can file in small claims court regardless of the buyer filing a chargeback. The buyer is still on the hook for what is owed you.
Hope this helps and if you can add to this please do.
