topic Re: How to avoid chargeback fee? in Selling

How to avoid chargeback fee?

charmony — Fri, 30 Oct 2020 09:38:16 GMT

Last time I had a chargeback was years ago, I had no option *not* to dispute it, and I lost the case even though the seller left feedback saying they received the item. So I had to pay the $25 fee.

So now I'm wary about what to do... The chargeback is for unauthorised purchase and I'm happy to just refund it to make this go away, but will I get charged the fee anyway?

Do I just select "I'll issue a refund and close the case" and will this avoid the fee?

Thanks.

Related matter: How the heck to you get to the Resolution Centre via Paypal? I had to google it and follow one of the hits. There are no links in my account that I can find, certainly not following the steps in Paypal's email ("Log into account, click Resolution center near the top"), and no warnings or notifications that there's a case open even on the transaction itself unless I click on it.

Re: How to avoid chargeback fee?

eol-products — Fri, 30 Oct 2020 09:48:09 GMT

I had a chargeback recently through paypal and was going to just refund when they sent me a message saying they would look after it. The buyers card issuer decided in the buyers favour after a few months and paypal covered the cost which was only $17.95 for a large roll of twine. I am under no illusion that had the item been more expensive it would have been different.

Re: How to avoid chargeback fee?

lyndal1838 — Fri, 30 Oct 2020 20:53:06 GMT

@charmony wrote:

Related matter: How the heck to you get to the Resolution Centre via Paypal? I had to google it and follow one of the hits. There are no links in my account that I can find, certainly not following the steps in Paypal's email ("Log into account, click Resolution center near the top"), and no warnings or notifications that there's a case open even on the transaction itself unless I click on it.

Paypal has it's own Resolution Centre which is accessed in your paypal account not through ebay.

If an ebay dispute goes sour and you lose you can get a second bite by then opening a paypal dispute.....but not both at the same time.

Re: How to avoid chargeback fee?

charmony — Sat, 31 Oct 2020 01:46:36 GMT

>Paypal has it's own Resolution Centre which is accessed in your paypal account not through ebay.

>If an ebay dispute goes sour and you lose you can get a second bite by then opening a paypal dispute.....but not both at the same time.

Okay but neither of those points relate to my question.

Re: How to avoid chargeback fee?

lyndal1838 — Sat, 31 Oct 2020 04:35:06 GMT

Well you did consider it a related matter when you posted it. I knew more about that question than I do about your primary question.

I only know the answer to the first question from a buyer's point of view. My bank told me that the fee is paid by the "loser" of the chargeback. In the three chargebacks I have done in 10 years I have never paid a fee so I guess the sellers paid. None of the sellers were interested in refunding for damaged items and it was in the days before ebay protection and precious little paypl protection.

Re: How to avoid chargeback fee?

designers*n*more — Sat, 31 Oct 2020 17:20:23 GMT

Same here. Had a buyer raise a chargeback with their bank 3 months after the sale, even received glowing feedback. After contacting her she claimed the bank did the chargeback not her and she asked the bank to cancel it but they said no (bs). Despite having written proof from Aust Post stating time, date and delivery, and provided a copy of the email from the buyer stating that she did in fact receive the item, the bank still went through with the chargeback.

Paypal however, covered me with seller protection and advise 4 months later the chargeback was upheld although I wouldn't need to pay back the money.

funny how the chargeback was done 3 months later, not 1 or 2 mths, but only when tracking disappeared off the radar. So I contacted Aust Post and they gave me the written confirmation of delivery.

Re: How to avoid chargeback fee?

charmony — Sun, 01 Nov 2020 03:16:09 GMT

But I'm the seller in this case. And I never mentioned ebay - I can't find the resolution centre in Paypal.

I just want to know if closing the case and refunding will stop me having to pay the fee or if I'm doomed to pay it no matter what I do (because I know it's impossible to fight the chargeback itself).

Re: How to avoid chargeback fee?

charmony — Sun, 01 Nov 2020 03:19:58 GMT

Unfortunately I don't have proof of mailing it or that it was received, since it wasn't registered or tracked (mailed in a $2 envelope). So I don't think I'm covered by Paypal. The buyer hasn't responded to my email or eBay message. It's possible the bank initiated the chargeback rather than her but the reason stated was unauthorised use, which implies she queried her statement.

Re: How to avoid chargeback fee?

lyndal1838 — Sun, 01 Nov 2020 03:45:43 GMT

I have a Private paypal account so it may be different to your business account.

I have a circle with 3 dots at the right hand side of the page when I log in. Click on that and a box drops down....the Resolution Centre is the bottom entry.

If you have no tracking information it is unlikely that you have any protection even though the chargeback is for unauthorised use. Paypal should be looking into that as they would have given you the OK to post....meaning that they authorised the payment.

Re: How to avoid chargeback fee?

charmony — Sun, 01 Nov 2020 04:04:13 GMT

Is that a legal stance though, that they authorised the payment therefore they're responsible for the chargeback? If there's a magical phrase I can use, I'd love to know what it is.

Both eBay and Paypal say you're supposed to contact the seller before opening a dispute, and in my experience the CC company also says you have to attempt to resolve with the seller first. Which the buyer didn't do (and I've written to them via email and eBay msg without receiving a response). Again, I'd love to know if there's a magic phrase that will cancel the chargeback or make Paypal cover it.

I do have those 3 dots and they do have the Resolution Centre - thank you. The email they sent doesn't say anything about that, so I couldn't find it before. eBay did the same thing when they sent out that email about using state codes (finally!) instead of the full state name - they had a list of instructions to get to the right area and it bore no resemblance to what you actually see when you go to eBay.

Re: How to avoid chargeback fee?

lyndal1838 — Sun, 01 Nov 2020 05:58:14 GMT

I have only seen discussions on here about chargebacks.

There is a general opinion that paypal is the only one who can check if the transaction is authorised....the seller cannot do anything but rely on paypal to tell you when to post.

If it were me I would contact paypal and ask if you are covered since you relied on them to tell you that it was safe to post.

Re: How to avoid chargeback fee?

davewil1964 — Sun, 01 Nov 2020 06:03:23 GMT

Paypal have a disclaimer that chargebacks are still possible in the future.

The OP is relying on Paypal seller protection, which hasn't been triggered due to no tracking.

The best thing is to refund, block the buyer and move on. Disputing the chargeback will result in a further charge. $15, I believe.

Re: How to avoid chargeback fee?

eol-products — Sun, 01 Nov 2020 21:02:30 GMT

here is some information

https://www.paypal.com/au/brc/article/understanding-chargebacks?utm_source=email&utm_medium=trigger&utm_campaign=M_005560_AU

Re: How to avoid chargeback fee?

charmony — Sat, 07 Nov 2020 04:15:48 GMT

>The best thing is to refund, block the buyer and move on. Disputing the chargeback will result in a further charge. $15, I believe.

The chargeback fee happens regardless of whether I refund and close the case (because I'm not covered by Seller Protection) because the bank charges that, not Paypal.

However - an update in this case. I asked Paypal about how to avoid the fee and there is no way to avoid it (even though tracking shouldn't even matter, given the reason for the chargeback wasn't "item not received" but "unauthorized use"). But for some reason the buyer's bank did not charge me (i.e. Paypal) a fee.

The person I talked to didn't know why, but she presumed it was because the value of the sale ($5.50) was so small.