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Why is there even a dispute system when scammers can just chargeback?

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Leroy-S
Contributor
Posted on

Back when I was abroad in December last year, I was suddenly informed that a dispute has been filed with my account. I had sold a game account, an intangible good, and was being charged back for my $1000, I was requested to provide information, which I did. Chat logs of the discussion between the buyer, every part of it, also included as much of information I had on hand. Lo and behold, tomorrow paypal had refunded the money due to the chargeback, no further questions asked. 

 

When I pressed further, I was merely informed that seller protection doesn't cover this. The buyer, on the other hand, simply went to sell the account on the same site the next day. I simply don't understand why this system even exists. I was abroad that time, and had to find the time to handle this, yet, after all my effort, I wasn't even given a fair judgement of any kind. Honestly, they shouldn't have bothered, and just refunded it from the get go. I have hundreds to thousands of transactions done over the years, none of which have had problems at all, but now this.

 

More importantly, if this is an exploitable loophole that so many scammers seem to be using, should I get on board too? Seems easy enough.

2 REPLIES 2

Why is there even a dispute system when scammers can just chargeback?

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kernowlass
Esteemed Advisor

@Leroy-S

 

There is no seller protection for 'intangible' goods, you can sell them but at your own risk.

With physical goods if you get a chargeback you can be compensated by Paypal if you lose the chargeback under seller protection.


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Why is there even a dispute system when scammers can just chargeback?

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Leroy-S
Contributor

That's what I was told earlier, my point is, was there a point to asking for information then? It's like saying, "You can use Paypal to trade virtual goods, but the buyer is always right in that case.", there's literally no bothering of if the person is a serial scammer, using literally the same account to exploit this clear loophole. It's just encouraging scamming to occur if the scammers don't even have to bother making a new account.

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