Someone requested a chargeback that was totally fraudulent, what can I do?

[Jay157]

After driving a person to and from work over a 3-month period, I find out that PayPal says the person requested a chargeback because all of the transactions were fraudulent. After talking to the person they said they never did that. I was told that their bank decided in their favor and I am expected to pay $475 back for what was paid by this person in 7 or 8 separate payments.  PayPal's only response to me was to pay the 439.72 which was now a negative balance in my account after taking the funds that were in my account. I can't afford to pay this money back. What recourse do I have?

[kernowlass]

@Jay157 

Sadly that transaction type would not be covered by seller protection.

However as a chargeback is not a paypal dispute but opened directly via the card issuers credit card company then only the buyer would be able to open the disputes.

[Jay157]

Thanks for your input.

[Deeps9]

@kernowlass @Jay157 

Happened to me as well. Buyer claims she did not raise the chargeback. She also says that the purchase amount has been deducted from her card. However, Paypal easily decides in buyers favor, since we were not covered by seller protection. Most of our products are bought by buyers as gifts for their friends or relatives. So the delivery address is not the same as buyer's address. Many times the buyer and delivery address are not even in the same country. But we share photos of the delivered products with the buyer and delivery is confirmed by both the buyer & recipient of the gift. Even after submitting all the proof PayPal decides that buyer is correct without even enquiring with the buyer. PayPal should take a little bit of trouble to check if the chargeback is correct or an easy fraudulent claim by the buyer. 

[kernowlass]

@Deeps9 

You negate your seller protection the instant you send the items to another address.

You are only covered by seller protection if you send the item to the paypal registered address of the buyer at the time of payment.

If they wanted it to be sent elsewhere then the buyer should add a 'gift' address to their paypal account and then select that address when they checkout to pay you so that you would be covered.

Photos and emails are not proof and would not stop a chargeback from going against you.