I had my first chargeback and I learned more from Chase bank than PayPal. Here are some tips to help sellers protect themselves from chargebacks and some things you can do if you have one.
Point of sale transactions are not covered under Paypal seller protection.
The buyer has 120days to dispute a charge so a merchant really doesn't have their money until after that time period.
Don't swipe charge cards anymore. Only accept chip cards. I was told by Chase Chargeback division that a merchant who swipes a charge card will be on the hook for the chargeback no matter what proof you have.
For those of us who are in the craft business and are vending at craft shows.
When doing point of sale transactions: Write down the buyer's address, phone, and last 4 digits of their credit card, 3 digit credit card code and confirm their identity on their driver's license. Write the transaction ID on this in case a future chargeback occurs. Write down what was purchased.
If the chargeback is filed contact the buyer immediately if you have their contact information.
Your Recourse against the buyer: You can file a theft report with the police and you can file in small claims court regardless of the buyer filing a chargeback. The buyer is still on the hook for what is owed you.
Hope this helps and if you can add to this please do.
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I received an email from Paypal that I had a chargeback. This was a point of sale transaction where the buyer handed me his credit card and signed in the pay pal mobile app and took his goods. The buyer filed a chargeback with his credit card and stated he did not make the charge. The purchase was made almost 5 months ago at a craft show I was a vendor at. The resolution center offered me no way to respond to the case on my behalf. The open case just stated Paypal was reviewing it and would contact me if they needed any info. There was nowhere to respond. I did find a way to respond by email to the disputes department 3 hours after I got Paypals email that a chargeback was opened. Paypal didn't even acknowledge my email response and never sent it to the buyer's bank. I know this from talking with the disputes department last night. Paypal closed the case within 2 days and told me the buyer's bank made the decision on behalf of the buyer. As far as I'm concerned Paypal never intended to do anything on my behalf. The buyer stole from me and so did Paypal when they charged me the 20.00 chargeback fee. The receipt showed what the buyer purchased and the mobile app shows the location of where the purchase was made and a signature. I can provide proof of the craft show location I attended as a vendor that weekend and my account shows several purchases made that weekend in the location. Merchant Sellers you're **bleep** on point of sale purchases with Paypal if the buyer disputes the charge. I won't be using Paypal for charges anymore
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