Disputes

[TH_0R]

I sent money to someone use paypal for items. I sent it using "friends and family", so that the person could get the money instantly. I didn't trust it since the seller did not reply to me over an hour. I ended up reporting the transaction to get it refunded/canceled. The person messages me and tells me he had a black out and couldn't respond. I cancelled the dispute and went along with it. The person then tells me that his paypal is now negative since I reported it. How do I resolve this issue? I sent the money, reported it, and then cancelled the claim and now the person has a negative balance.

[kernowlass]

@TH_0R 

I doubt they have a negative balance because if they asked you to pay using friends/family they may well be trying to scam you.

Also the only dispute you can open is a dispute for unauthorised and you would lose that anyway as you were not hacked and it was you that made the transaction.

With friends/family disputes you have no buyer protection so cannot dispute non receipt of item or item received but not as described.

A friends / family (or gift payment) is intended as a transfer of funds from family or friends to one another. For this reason, there is no processing fee when payment is made with bank or PayPal balance.
However as it is a gift payment, there is also no buyer protection as no goods or services should have been exchanged.

If he was not a close mate or family member you should never use that option as it enables the seller to evade paying his Paypal fees and negates your buyer protection at the same time.

You would also not be able to open a dispute (apart from one citing an unauthorised transaction), which would be automatically closed as you did authorise the initial payment.

Be careful as using that option for purchasing goods is against Paypal rules and can lead to account limitation.

If you funded your Paypal payment via a credit card then contact your card issuer and see if they will help you but unfortunately they may decline as well as it was a gift payment.