eBay Buyer Filed Unauthorized Purchase Dispute

[mitch11west]

Hi there! 

I recently sold an item on eBay, and I shipped the package out per usual, and the buyer received a few days later. They are now filing an Unauthorized Transaction Dispute, to which I believe is untrue, but that is besides the point. I had already transferred the money to my bank, and now PayPal put my balance in the negative for the dispute. If PayPal sides with the buyer, am I penalized? Do I just lose out on the money earned and the item itself because the buyer is either a) lying, or b) had an actual unauthorized transaction? I have proof of shipping and delivery. Thanks for any help!

[sharpiemarker · Accepted solution]

@mitch11west 

Yes, you are liable if PayPal or the financial institution (if chargeback) determines there was an unauthorized access of the buyer's account and must add funds to zero out your PayPal balance. But if you have tracking info with proof of delivery, PayPal may cover you and then you will get your money back and withdraw it again.

Its the risk of selling online. Who paid may not be who you sold to. If you sell on eBay for a living, sell successfully more than you lose. Take a percentage of each sale towards self-insurance to cover the occasional dispute/chargeback.