Chargebacks

[character_parties_aus]

Hello

We have received a chargeback via paypal assuming that the buyer paid by credit card. The details of the chargeback are vague. All we know is that it is a merchandise chargeback for approx $50 for an item not as described or damaged in some way. Paypal does not cover us for seller protection in this instance. We have had no contact from the buyer at any point. The items were delivered by tracked post 3 weeks ago.

Paypal have said - send us a picture and other totally useless stuff like that so they can fight it. They dont really have any intention of that of course.

I would be interested to hear of any useful ways of fighting chargebacks. We dont actually know the nature of the complaint as there has been no contact with the buyer but I am struggling to see how some paper party bags get damaged in the post. However perhaps we did send the wrong item we dont actually know!

We have so far

- Lodged a report to ACORN and told the buyer we have reported the transaction to ACORN as there has been no contact from them. Whilst we are not perfect sellers if there is an issue we need to know to resolve it! We have no idea of what the issue is if any other than a merchandise chargeback.

- Submitted a copy of our returns policy including any disputes to paypal which the buyer is in breach of as they failed to inform us of any issues or submit any evidence to us of such - which leads me to suggest its fraud.

- 2 people can confirm what was sent as the packing process includes a 2 stage check to make sure goods sent are as ordered.

Its only $50 but its the principle. Any other ideas of fighting such fraud are welcome!

[shepherdsrule]

Paypal have said - send us a picture and other totally useless stuff like that so they can fight it. They dont really have any intention of that of course.

Youu can't possibly kknow paypal will not try to sort this on your behalf so give them a chance to, what have you got to lose?

If I were you I would get the buyer contact details and phone them, and ask them what the problem was.

[jfmgray]

I had 2 chargebacks a few weeks back from the same buyer.  I contacted the buyer who would't (or couldn't) tell me the reason his bank had instigated the chargerback but confirmed the items had arrived.  No tracking.  Paypal were great and as soon as I lodged screenshots of the buyer's messages, they closed in my favour.  Not only did they release my funds, they also credited my account $30 in case they took the matter further with the bank which would normally cost me a service fee of $15 each chargeback.  If you are longstanding paypal account holder with a cleanish record, I find they will bend over backwards to support you.  Well that has been my experience.

[digital*ghost]

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@character_parties_aus wrote:

We have received a chargeback via paypal assuming that the buyer paid by credit card. The details of the chargeback are vague. All we know is that it is a merchandise chargeback for approx $50 for an item not as described or damaged in some way.

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As far as I know, if the chargeback is for damaged or not as described, the bank will require the buyer to return the merchandise (just like PayPal would).

Hopefully, if the buyer is trying it on, this requirement will thwart their efforts. 

[lyndal1838]

You are right Digi....a bank chargeback requires the buyer to return the item with signature on delivery, full tracking and the signature to be returned to the sender who is then supposed to send it on to the bank to prove that it has been delivered.

it is a far more expensive option than an paypal dispute, especially now that paypal has the offer of return postage paid by them.

[dcds2014dcds2014]

I recently had a chargeback  filed and looking at the guys feedback it appeared he did it to every item he bought.

However paypal said send them screenshots of the order thru ebay and any other screenshots to verify the customer made the order. I thought well thats it as i had no tracked delivery, however to my surprise the case was closed in my favour as I had the guys address and an item ordered thru paypal/ebay by someone on his account so dont give em up for dead yet

[clarry100]

We had a chargeback for a small item valued at under $10 a couple of years ago now. No tracking on the delivery.

So I called paypal about it.

They took a look at my clean track record and closed the case "NO FAULT". Even tho I had no tracking.

They said this meant that the buyer still received their refund and got to keep the item but the money came from PayPal not from me.

By the way if you choose to fight the case they will automatically apply a $15 fee. Then if you lose you will be slugged the fee as well.

If you win they will rescind the fee. Generally you need to be able to show tracking that shows delivery to the buyers posctode and/or suburb or location. But occsaionally they will allow you a win without tracking. So don't give up... call them before you take up the fight tho.

[character_parties_aus]

Thanks for all your replies.

We have had chargebacks previously or claims although not for several years and due to our good standing paypal has simply refunded us. As this was a paypal credit card payment we are not covered for seller protection on a merchandise chargeback. I am actually more interested in pusueing the nature of the issue the unresponsive seller has and ensuring that if there is an issue we remedy and if as I suspect there is no issue they do not do us over. The buyer is a new ebayer ( 4 feedback) . I find it suspicious that someone simply raises a chargeback with no communication with the seller.

The buyer is in clear breach of our advertised returns policy which was clearly displayed so we will be fighting the chargeback on the basis that our returns policy has not been followed. We have also reported to ACORN. We have told the buyer and paypal this. I will let you know what happens! Worst case I have their address and will pursue them through the small claims court on point of principle.

[lyndal1838]

I must be pretty dumb but why are you not covered for a merchandise chargeback for a credit card funded paypal payment?

[clarry100]

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@lyndal1838 wrote:

I must be pretty dumb but why are you not covered for a merchandise chargeback for a credit card funded paypal payment?

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Hmmm yes me too.

You, as the seller, are unable to tell if the buyer has funded the purchase thru PayPal with an attached credit/debit card or by direct debit from a linked bank account. They have just paid you via paypal. And as such I would have thought that the usual seller protection is in place.

Please educate us some more here.