Twice in the last two months customers have filed chargebacks through their CC provider which Paypal has forwarded to me. I have provided proof of the sale, evidenced everything and I have been notified that the merchant bank decided to refund as if that was a 3rd party...
Unfortunately that's not how it works. Refunds are decided by the merchant bank. In this case that would be Paypal.
4 times in the last year I have provided Paypal with evidence of sales and customer receipts for products in a "charge not authorized" chargeback claim. Twice I have proved that the customer utilized the product repeatedly over the course of days. I have a 100% 90-day guarantee. If the customers had come to me to ask for a refund they would have received it. This was customers being too lazy to check their card purchases and automatically filing a chargeback when they didn't recognize it.
In theory their bank should help them get a hold of me to verify, but since it's Paypal, it's just automatically sent into the automatic refund system... which conveniently not only gives away the money I legitimitely earned, but also charges me an additional $20 for the bad luck of having someone not recognize their purchase with me in a system that won't allow me to defend myself.
I have no idea who to complain to. I have no idea who might hear this and review the automatic granting of "charge not authorized" chargebacks despite evidence. I would dearly appreciate it if someone reading/modding this board might file some sort of request for management to modify the automatic granting of all "charge not authorized" chargebacks. If I stopped offering Paypal a year ago and made all my customers use my other merchant account I'd be $500 richer right now. Every single potential "charge not authorized" call I've gotten through my merchant account in the last decade calls me, accepts evidence of the purchase and drops the chargeback right there...
Please stop pressuring me to stop offering Paypal due to a profitable to Paypal flaw in the Chargeback review process which unfairly costs merchants...
