Sold Walmart Gift Cards and Buyer initiated False Charge Dispute After he Used the Codes

CedarCafe
Contributor
Contributor

I sold 2 $25 Walmart gift cards a month ago and sent the Buyer an Email containing the Codes and marked it as picked up. But the Buyer initiated a chargeback labeled as false charge which left me with a negative Paypal balance. I have contacted the PayPal support staff and sent them the Email showing that I sent the codes but I am not sure if there is anything else I can do to put the dispute in my favor. Any help would be appreciated. Thanks!

Login to Me Too
1 ACCEPTED SOLUTION

Accepted Solutions
Solved

sharpiemarker
Esteemed Advisor
Esteemed Advisor

@CedarCafe 

 

Always check seller protection terms to see if PayPal is right for your transaction before conducting it.

 

Unfortunately, cash equivalent items including gift cards ARE NOT covered under seller AND purchase protection (see below). Sell them at your own risk. Since this is a chargeback through buyer's financial institution (either because stolen card info was used or buyer realized gift cards are not covered under purchase protection), its a different story. An extra chargeback fee is incurred on top of amount disputed for PayPal to administer chargeback. PayPal does not decide chargeback cases so if the financial institution rules in favor of the buyer, then you're out of gas, I'm afraid.

 

https://www.paypal.com/us/webapps/mpp/ua/useragreement-full?locale.x=en_US#purchase-protection

https://www.paypal.com/us/webapps/mpp/ua/useragreement-full?locale.x=en_US#seller-protection

 

Ineligible items and transactions

Your sale is not eligible for coverage under PayPal’s Seller Protection program if:

  • It involves intangible, non-physical, items, including digital goods, and services. Digital goods are delivered and used in an electronic format, like a song delivered online or through a mobile application.
  • The buyer claims (either with us or their card issuer) that the item you sent isn’t what was ordered (referred to as a “Significantly Not as Described” claim).
  • It involves an item that PayPal determines, in its sole discretion, is a counterfeit item.
  • It involves an item that you deliver in person, including in connection with a payment made in your physical store.
  • It involves sales that are not processed either through a buyer’s PayPal account or a PayPal guest checkout transaction. For example, if the sale was made using the PayPal Payments Pro/VT product, PayPal business payments or using PayPal Here, then it is not eligible for coverage. 
  • It involves items equivalent to cash including gift cards.
  • It involves a donation.
  • It relates to the purchase of a financial product or investment of any kind.
  • It involves a payment sent using PayPal’s friends and family functionality.
  • It involves a payment made using PayPal Payouts and Mass Pay.
  • The item is a vehicle, including, but not limited to a motor vehicle, motorcycle, recreational vehicle, aircraft or boat.

Kudos & Solved are greatly appreciated. 🙂

View solution in original post

Login to Me Too
2 REPLIES 2
Solved

sharpiemarker
Esteemed Advisor
Esteemed Advisor

@CedarCafe 

 

Always check seller protection terms to see if PayPal is right for your transaction before conducting it.

 

Unfortunately, cash equivalent items including gift cards ARE NOT covered under seller AND purchase protection (see below). Sell them at your own risk. Since this is a chargeback through buyer's financial institution (either because stolen card info was used or buyer realized gift cards are not covered under purchase protection), its a different story. An extra chargeback fee is incurred on top of amount disputed for PayPal to administer chargeback. PayPal does not decide chargeback cases so if the financial institution rules in favor of the buyer, then you're out of gas, I'm afraid.

 

https://www.paypal.com/us/webapps/mpp/ua/useragreement-full?locale.x=en_US#purchase-protection

https://www.paypal.com/us/webapps/mpp/ua/useragreement-full?locale.x=en_US#seller-protection

 

Ineligible items and transactions

Your sale is not eligible for coverage under PayPal’s Seller Protection program if:

  • It involves intangible, non-physical, items, including digital goods, and services. Digital goods are delivered and used in an electronic format, like a song delivered online or through a mobile application.
  • The buyer claims (either with us or their card issuer) that the item you sent isn’t what was ordered (referred to as a “Significantly Not as Described” claim).
  • It involves an item that PayPal determines, in its sole discretion, is a counterfeit item.
  • It involves an item that you deliver in person, including in connection with a payment made in your physical store.
  • It involves sales that are not processed either through a buyer’s PayPal account or a PayPal guest checkout transaction. For example, if the sale was made using the PayPal Payments Pro/VT product, PayPal business payments or using PayPal Here, then it is not eligible for coverage. 
  • It involves items equivalent to cash including gift cards.
  • It involves a donation.
  • It relates to the purchase of a financial product or investment of any kind.
  • It involves a payment sent using PayPal’s friends and family functionality.
  • It involves a payment made using PayPal Payouts and Mass Pay.
  • The item is a vehicle, including, but not limited to a motor vehicle, motorcycle, recreational vehicle, aircraft or boat.

Kudos & Solved are greatly appreciated. 🙂
Login to Me Too

CedarCafe
Contributor
Contributor
Thank You!
Login to Me Too

Haven't Found your Answer?

It happens. Hit the "Login to Ask the community" button to create a question for the PayPal community.