We run our monthly website subscriptions through PayPal. In July, a member decided to initiate chargebacks through his credit card for April, May and June claiming "item was damaged on receipt or is different from what you described" -- despite the fact that he had been a member since January and knew what the site subscription was. Paypal notified us of 2 of the chargebacks, which I immediately responded to with the explanation that it is a site subscription and that the site was available and provided to the member ad-free, as promised. However, shortly after, PayPal notified us that we would be refunding 3 payments, each with a $20 fee. So, we are paying an additional $60 for providing $15 worth of free service. It seems that PayPal did not even attempt to dispute the chargebacks or provide any information to the credit card company. This seems so clearly wrong, and that we should be assessed additional fees on top of the fee PayPal already takes out of each payment we receive doesn't justify using PayPal at all. Granted we are a very small customer, and I have seen people on this forum out much more for fraudulent chargeback claims, but I have to wonder if PayPal EVER pursues a chargeback claim and wins? If not, why even bother trying to provide a service? I would have preferred to deal with the credit card company myself.
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