Question for All you Pay-Pal Users & Experts

  • Thread starter Thread starter Bruce S. de Lis
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Bruce S. de Lis

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Recently there was a THREAD where a Buyer, had Apparently been S T I F F E D by a Seller who did not send the Merchandise that was paid for where the buyer USED Pay-Pal. Paying through a Credit Card.

The Buyer was complaining about his Dispute, and I questioned when the buyer did not just Start a DISPUTED with their Credit Card Company with their basic of the Dispute being. Non Receipt of Merchandise Paid.

QUESTION IS: When you use Pay Pal do you give up you rights to Dispute CHARGES through your Credit Card Company, unlike the normal protection you receive with Credit Card transactions?

Please Educate me about the Pay Pal dispute process, as I am thinking of moving into the 21st. Century by getting set up with Pay PAL.... ;)
 
Bruce S. de Lis said:
QUESTION IS: When you use Pay Pal do you give up you rights to Dispute CHARGES through your Credit Card Company, unlike the normal protection you receive with Credit Card transactions?

Please Educate me about the Pay Pal dispute process, as I am thinking of moving into the 21st. Century by getting set up with Pay PAL.... ;)
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Bruce,

The best way to avoid fraud is to pay by credit card, whether though paypal or any other credit card merchant. If you dispute a charge, the there is a "chargeback" while the investigation is being conducted.

If you paid by credit card through Paypal, my undertanding is when you dispute the charge through the credit card company, then you cannot use the the Paypal dispute process. Instead, your credit card company negotiates with Paypal for your refund, not you.

You can still go through the Paypal process if you paid by credit card as long as you don't dispute the charge through the credit card company.

Paypal offers little protection for items that are received but "not as advertised". You are covered for up to $1,000 for items not received or substantially misepresented, if you bought it though an e-bay auction you won, used the verified e-bay e-mail address for the account, and the auction advertised Paypal.

That's all well and good, but your credit card company offers much better protection.

The following is very detailed from the Paypal website regarding what a seller faces as far as chargebacks from credit card disputes:

What is a chargeback?

A chargeback occurs when a buyer asks their credit card company to remove a charge from their credit card statement. The credit card company will ask the buyer to provide an explanation about why they are disputing the charge.

Two common reasons for reversals or chargebacks are:

A buyer’s credit card number is stolen and used fraudulently


A buyer makes a purchase, but believes that the seller failed to fulfill their side of the agreement (e.g. did not ship the item, shipped an item that was very different from the seller’s description, or the item was damaged when the buyer received it).
How does PayPal notify a seller when a chargeback has been filed against them?

When PayPal is notified that a buyer has filed a chargeback against a seller, PayPal immediately emails the seller. Then, the seller can log into their PayPal account and go to the Resolution Center to monitor the status of the case and provide information to help resolve the matter.

How can a seller recover funds when a chargeback occurs?

When a chargeback occurs, the money that is subject to the chargeback is deducted from PayPal’s bank account. In turn, PayPal places a temporary hold on the same amount in the seller’s PayPal balance (i.e., the funds are frozen).

The seller and PayPal can work together to dispute the chargeback with the buyer’s credit card company. While the chargeback is being disputed, PayPal will debit the seller for the amount in question. If PayPal and the seller ultimately win the chargeback dispute, the credit card company will reimburse PayPal for the chargeback and PayPal will transfer the recovered funds back to the seller. Depending on the credit card company involved, the process may take up to 75 days. In a dispute over a chargeback, the decision is ultimately made by the credit card company and PayPal cannot control the outcome.

How do PayPal and the seller work together to dispute a chargeback with the buyer’s credit card company?

Sellers can provide PayPal with evidence to dispute the chargeback through the Resolution Center, by email at chargeback-response@paypal.com, or fax. PayPal uses this evidence plus any evidence PayPal may already have to dispute the chargeback with the buyer’s credit card company. Because of deadlines imposed by the credit card companies, sellers must respond quickly (usually within 5 days) once they are notified of a chargeback. Response deadlines can be found in the email PayPal sends to the seller when notifying them of a chargeback.

PayPal reserves the right not to dispute a chargeback even if the seller has provided some evidence, particularly if PayPal believes the dispute is not likely to be successful.

Why do some chargebacks occur so long after a seller receives the payment?

Federal law and credit card issuer policies usually allow buyers to file chargebacks weeks or sometimes months after the initial transaction occurs. If a buyer waits to file a chargeback, a seller may encounter a temporary hold on funds in their PayPal account for a transaction that occurred weeks or months ago.

What are some best practices for avoiding chargeback losses?


Follow the Seller Protection Policy guidelines by shipping to the buyer's address listed on the Transaction Details page and by retaining proof of delivery that can be tracked online.


Describe the item that you are selling in as much detail as possible and as accurately as possible. Include pictures, measurements (if applicable), and other relevant specifics.


Make every effort to know your customer and to respond promptly to any customer service requests.


Keep as much information as you can about the transaction and your customer, including any emails or other correspondence.


Publish your return policy in your auction listings or on your website. Also include your policy in email correspondence with your customer. Please note that federal law and credit card issuer policies provide that buyers may have chargeback rights for merchandise that is not delivered or is defective, even if your policy indicates that all sales are final and that you do not allow returns.
What information can a seller provide to increase the chances of winning a chargeback dispute?

Some types of information that sellers can provide to PayPal to increase the chances of winning a chargeback include:


Proof of delivery, such as online tracking numbers


Copies of the original item description or auction description, including any photos


Proof that the buyer was already refunded


Proof that the buyer was provided with a replacement product


Correspondence with the buyer or feedback from the buyer


Any agreements signed or accepted by the buyer at time of purchase


Any return policy that was communicated to the buyer
Does receiving a chargeback affect a seller’s eBay feedback?

The chargeback system is independent from eBay feedback. Filing a chargeback does not limit a buyer's ability to leave feedback for a seller. In fact, a buyer can file a chargeback even if they have already left positive feedback for the seller. Receiving a chargeback does not negatively impact a seller's eBay feedback rating.




 
TATE said:
Bruce,

The best way to avoid fraud is to pay by credit card, whether though paypal or any other credit card merchant. If you dispute a charge, the there is a "chargeback" while the investigation is being conducted.

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I still woulk think a Buyers BEST AVENUE for RECOVERY of Funds, and Not Having to Pay for something Not Received would be go Straight to you Very Own Credit Card Company....

Thanks for the Long Version of the Story TATE..... ;)
 
The one time I had trouble with Paypal, I had used my credit card as the fund source; The person did not send the merchandise and when I went through Paypal they effectively said "too bad there's nothing we can do"; so I went to my credit card company and explained the fraud and they issued a chargeback. Days later Paypal sent me an e-mail saying why did I do that .....???
Paul
The person turned out to have defrauded a lot of people
 
Think dealing with your OWN Credit Card Company has Clout, as if you Pay your bill you are a Valuable Customer to them.

I get 5-10 offer For Credit Cards a Month. Stay with Chase as they pay me a Bounty in Cash on Each Purchase. Only 1% but better than Nothing.....
 
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