How long can a person wait before they reverse a transaction?

DrSalvador555
Contributor
Contributor

So someone I know personally sent me money (I believe as a gift, it seems paypal took ~3% as a fee) and I want to know how long they have before they can issue a reversal (he says he did a bank transfer.) I don't expect things to go wrong, but he's been known to try to pull a fast one so I'm just trying to plan ahead. I don't want to spend any of the money until I know he can't reverse it and leave me in the negatives. I just remember there was a lot of chargebacks and the like going around when people were dropping fake donations on twitch so now I'm a little apprehensive. Thanks for any info!

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sharpiemarker
Esteemed Advisor
Esteemed Advisor

@DrSalvador555 

 

If you were charged a PayPal fee to receive this payment then it was a goods and services payment this person sent and the sender has 180 days to file a dispute on it with PayPal. The sender says they sent a bank payment but who really knows for sure except for him as payment method is not revealed to recipient. If you don't feel comfortable with this transaction, just refund the payment within the transaction details and move on.


Kudos & Solved are greatly appreciated. 🙂

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sharpiemarker
Esteemed Advisor
Esteemed Advisor

@DrSalvador555 

 

If you were charged a PayPal fee to receive this payment then it was a goods and services payment this person sent and the sender has 180 days to file a dispute on it with PayPal. The sender says they sent a bank payment but who really knows for sure except for him as payment method is not revealed to recipient. If you don't feel comfortable with this transaction, just refund the payment within the transaction details and move on.


Kudos & Solved are greatly appreciated. 🙂
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DrSalvador555
Contributor
Contributor

@sharpiemarker What are some reasons that a payment could be reversed for a goods and services transfer? 6 months to dispute is quite a long time to go and find out later on that they waited 5 months and then tried to say the goods or services weren't "satisfactory", would that be all it took to get the money refunded? Or is there adequate protection on my end?

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sharpiemarker
Esteemed Advisor
Esteemed Advisor

@DrSalvador555 wrote:

@sharpiemarker What are some reasons that a payment could be reversed for a goods and services transfer? 6 months to dispute is quite a long time to go and find out later on that they waited 5 months and then tried to say the goods or services weren't "satisfactory", would that be all it took to get the money refunded? Or is there adequate protection on my end?


6 months is how long financial institutions (credit cards/bank accounts) allow for chargebacks and reversals so PayPal decided to go by that timeline as well. Some of the reasons include unauthorized payment, the seller didn't resolve a problem with a customer or customer lost a PayPal dispute, or delivery on international shipments may take quite a long time to arrive so this will allow enough time for delivery plus all kinds of other unique reasons a transaction doesn't go smoothly as financial institutions dispute terms are more broader than PayPal's. 

 

Accepting payments online these days for anything is a risk so you have to expect that and have funds in your account to cover these contingencies. It don't happen all the time but its does happen from time to time.


Kudos & Solved are greatly appreciated. 🙂
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