Chargeback Case Opened

[clarry100]

Hi all,

We have just received a notice from PayPal that a chargeback case has been opened against our account.

The reason as stated is "unauthorised use".

The amount is only $5.50 so not a total killer. But it's the principle here.

And they will charge us a $15 fee for the privelege. How utterly rude.

They have asked us to provide any evidence we have to help them fight this case.

We use regular large letter so we don't have tracking informatioin.

In any case its not about if/not we mailed out the item (which of course we did), nor is it about item not as described.

We have done all the right things in good faith and now it looks like we just loose the money.

Blatant rip-off by PayPal and the banks IMHO.

Might be time for FIO report methinks.

Anyone got any ideas on how to fight these things?

[harley_babes_hoard]

*touch wood* in 4 years I have never had one of these. I am curious how you proceed also. $15.00 is a bit steep.

[thecatspjs]

Have you rung the buyer to discuss directly? This can often get the matter sorted.

It may be that they are overspent on their credit card and the bank is trying to recover its funds, sometimes buyers are not even aware that their bank is attempting to recover funds through chargebacks.

IMO credit card chargebacks are just one of the many risks when doing business - whether online or B&M.

Paypal conditions are clear about the evidence that is required for seller protection - proof of addressee and proof of post.

Not sure what case you mount with FIO.

[clarry100]

I have messaged the buyer about it but so far no response.

This is a new buyer with a FB score of 5.

No FB left for other sellers.

[ucelsoya]

I take it that your buyer has complained to PayPal that the item was not received. PayPal will then ask you for proof of posting to the buyers correct address.

I have adopted the following process to combat buyers who receive their item and then claim under "Buyer Protection" that they did not receive it and thus get their money back as well.

1. When a sale is made I create a "Proof of Posting" (POP) folder for that sale and name it "Buyers Name" (not buyers ID).

2. I put a copy of the PayPal Payment Notification (PPN) showing the date and items purchased into the folder. 

3. I put a copy of the image/s of all the items which are on the PPN into the folder.

4 I address the letter to the address shown on the PPN. (not the EBay address - in some cases these two addresses are different).

5. When the letter is submitted for posting I ask for a circular postmarker handstamp to be used and for the date to be clearly showing on the envelope and not "hidden in the stamp" and then I photograph this area of the envelope.

6. I put a copy of the posting photo into the POP folder.

7 I keep this folder till positive feedback has been received.

If a Buyer claims that an item was not received then I can send all the images to PayPal as evidence for "Proof of Posting" of the item concerned. The images can also be offered to the buyer to assist with a claim against the relevant Post Offices for a "Lost in Post" claim.

This may seem to be a lot of effort but it will help Sellers provide Paypal with the evidence required.

Hope this helps.

[bigbrickshop]

I agree with Cats.

Give the buyer a call. If you don't already have their phone number you can request their details from eBay.

Do you have a Business PayPal account? Some buyers initiate chargebacks when they see payments on their creditcard statements and cannot recall making a purchase from Joe Blow. With Business accounts your PayPal transactions on creditcard statements will show your business name or your eBay store name, whatever you select in your PayPal settings.

[clarry100]

This is not about INR or item SNAD.

Its about chargeback for unauthorised use.

[thecatspjs]

If it is a new or infrequent buyer then that is further reason to pull their contact details and ring them. Being proactive is not going to make the situation any worse.

[clarry100 · Accepted solution]

OK I just got off the phone with PayPal and here is the end result....

The paypal operator was very helpful indeed I must say.

Because we used standard mail and therefore we have no tracking or proof of postage, in this case we will lose the case if we fight it and will therefore lose the $5.50 plus a $15 fee for them to fight it for us.

So she advised that the best way is that we accept the liability for the chargeback and then we simply lose the $5.50.

But... because of the small amount involved she made a discretionary refund to our account under the seller protection program for the $5.50.

There is no black mark on our account either.

So end result the case is now closed and we are not out of pocket.

So a good outcome.

[cq_tech]

Well done, Clarry. A surprising pleasant result from Paypal though, I must say.