Chargeback scam

[Swissie94]

Hello. Im hoping somebody can help me. I have received a chargeback from somebody that bought something from me on ebay. They bought a digital download code. They used the code and now 23 days later have contacted their bank to say it was unaurthorised. Obviously once the code has been used it cannot be refunded due to the nature of the item. I think they know this and are falsely claiming that it was unaurthorised, i think the opposite is true due to the account user contacting me several times through ebay asking questions about the code etc. My question is how can i stop paypal from issueing a refund in their favour. I have tried emailing the account user but no response. Thanks in advance.

[kernowlass]

@Swissie94

An unauthorised dispute means that an account holders account was hacked and used to pay for your item by your buyer without the account holders consent.

Paypal investigate this to see if its true.

If there is no sign that is was unauthorised then the dispute fails.

If they think it was unauthorised then the account holder gets their money back BUT you would be reimbursed by paypal seller protection IF you qualified for it.

HOWEVER there is NO seller protection on paypal for virtual / digital items, you can sell them but at your own risk.

So if and only if the account holders account was hijacked then you may well lose the money

[henaffk]

Hello, 

I have been charged with fraudulous chargeback as well. The consumer did receive the item via FedEx, and I sent all proofs of delivery including screenshots of the order to Paypal. The mentionned reason is "unauthorized transaction" and the dispute comes from the buyer's bank.

Still, Paypal is taking the scammer side, and despite all proof sent, the money has been deducted from my account. 

This is unacceptable how can merchants insure secure selling on this platform? I am removing Paypal from our website until a solution has been found and will not let this go.

[Swissie94]

Thank you both. I think paypal have sided with the financial institution so to speak. Guess I Will no longer sell digital items on ebay. I belive the buyer was aware. They have feedback on ebay showing they have done it before.

[jesseliu0]

File complaints to BBB and consumer protection agencies against PayPal. The more people take actions, the more will know how PayPal sucks and stop using it.

[kernowlass]

@jesseliu0

OR read up on seller protection to see what coverage paypal provide and then risk assess your own transactions?

[jesseliu0]

Good idea. If all sellers can read it, no one would use PayPal for the fake seller protection, since you never know when chargeback scam happens and you never want to lose $40,000 for trusting PayPal.

https://community.ebay.com/t5/Selling/Chargeback-scam-what-are-my-options/td-p/23975304

[Harmoney]

Thank you for highlighting this.

The criminal fraudsters are on to this too. It recently appeared on BBC TV 'Rip-off Britain'.

I have been a victim myself.

I sold a vehicle bumper on Ebay "Collection only - Cash on collection preferred".

The purchaser paid on Paypal, turned up inspected the item and said "perfect, very happy with it". Witnesses were present.

2 months later, I get a Chargeback for the item original cost plus an admin fee with reason - not despatched / received.

I challenged that, then given reason 'unauthorised activity on buyer's account'.

I provided all evidence to Paypal of the unauthorised debit to my account; collection;  Ebay communication from buyer confirming he has the item and is happy with it and that it is a mistake by his bank. The Police are apparently not interested if the cost of action is more than the loss.

My Paypal account is in debit because of the fraud I have suffered. I am reluctant to restore the balance when I do not accept the debit and see numerous reports of sellers losing their money despite providing evidence of a fraud.

I have protested to Paypal, who have threatened me with debt recovery. Paypal say it will take 80 days to consider my counter claim despite the purchaser's bank having had the evidence of fraud for over a month.

I have stopped using Paypal and Ebay for the time being which is damaging to us all.

It is difficult to get written responses from Paypal about any substantive action they are taking on my behalf.

It seems innocent sellers are being conned and it is time the banks and Ebay woke up to this with more effective action to prevent or resolve it. Otherwise, they will lose customers ... I for one. Other platforms are available.

SELLERS BEWARE!

[jesseliu0]

Another sad story...

Always try to sell high value stuffs locally with cash pay, unless you can afford a lawyer to sue banks or paypal.

[jesseliu0]

And even if you sell sth on Craigslist, there are always PayPal scammers spamming your messages and asking you to ship and pay by paypal. These obvious chargeback scams could be traps to newbies, but paypal can't to anything to stop it. So annoying.