topic Re: Credit Card Chargback in Selling

Credit Card Chargback

dylan11235813 — Fri, 20 Jun 2014 11:05:54 GMT

I had a buyer about 2 months ago order an item for about $7 and I got a chargeback thing for the transaction through paypal. I decided to fight it as it was for an unauthorised use of a Card (not realising it actually cost me $15 to do so by paypal). I stated in my claim that it was paypals and the banks fault because they initially allowed the fraudulent transaction. I had no proof of shipping an item or anything.

Anyway I won (after about 2 months) and they only refunded me the $7 and not the $15 fee paypal charge. Shouldn't the bank or paypal pay the $15 fee as they have admitted they are in the wrong by refunding me.

Re: Credit Card Chargback

dylan11235813 — Fri, 20 Jun 2014 11:13:35 GMT

I forgot to add that the $15 fee was apparently for paypal to fight the claim with the bank.

Re: Credit Card Chargback

phorum_junkie* — Fri, 20 Jun 2014 11:27:22 GMT

I would leave well alone, personally I would have authorised the refund of $7 straight away if I had no proof of posting to Paypal's standard, it is very unusual for Paypal to fight a chargeback unless you insist and the cost of that insistance is $15. They will usually either refund from your account or from their own pocket if you have seller protection. Are you sure they did actually fight and win the chargeback dispute or are they just giving you a discretionary rerfund?

Re: Credit Card Chargback

dylan11235813 — Fri, 20 Jun 2014 12:00:54 GMT

Paypal froze the funds and then I could supply further info like a tracking number. They took the money as I didn't have tracking. They said I could apply through paypal to fight it with the bank, which paypal decided to do, that is what the $15 fee is for.

I think the bank refunded it, the shipment wasn't being disputed. I just think the bank should cover this extra cost.

Re: Credit Card Chargback

dylan11235813 — Fri, 20 Jun 2014 12:20:41 GMT

Re: Credit Card Chargback

dylan11235813 — Fri, 20 Jun 2014 12:21:32 GMT

Re: Credit Card Chargback

dylan11235813 — Fri, 20 Jun 2014 12:22:25 GMT

Paypal said the fee would be waived but it wasn't

Re: Credit Card Chargback

dylan11235813 — Fri, 20 Jun 2014 12:29:25 GMT

I can't work out what is going on in the paypal transaction. By the looks of it I am out of pocket for the 6.90 also

Re: Credit Card Chargback

phorum_junkie* — Fri, 20 Jun 2014 13:07:20 GMT

By fee they mean the 30c+2.4%

Re: Credit Card Chargback

davewil1964 — Fri, 20 Jun 2014 13:53:32 GMT

They reimbursed $6.43, then took $21.90, then reimbursed $6.90.

So you are out $8.57.

Re: Credit Card Chargback

dylan11235813 — Fri, 20 Jun 2014 14:23:09 GMT

Paypal say "although we were charged a fee we waived it" I assume the fee is charged by the bank? Which paypal are charging $15 for?

I can see in the payment summary that it looks like the transaction fee didn't end up being payed.

This kind of scenario just makes buyers more likely to do the same thing and a seller unlikely to fight a chargeback if they are going to be out of pocket. I can understand if a buyer didn't receive their item but this is for a fraudulent use of a card.

Re: Credit Card Chargback

tstore — Fri, 20 Jun 2014 14:44:06 GMT

I am pretty sure that you get charged the $15 fee by PayPal irrespective if you win OR lose. It is in PayPal's T&C. Correct me if I am wrong.

Re: Credit Card Chargback

tstore — Fri, 20 Jun 2014 14:47:06 GMT

In addition even if you refund without fighting the dispute you will be slugged with the $15 fee. In this scenario I am 100% sure. Not 100% sure if it is the case if you win a dispute though.

Re: Credit Card Chargback

dylan11235813 — Fri, 20 Jun 2014 15:06:51 GMT

I think paypal are saying that the fee is actually charged by the bank. If a chargeback is won I believe that the bank should pay this back, seems far to me. They are at fault.

I didn't realise that the fee was still charged even if a refund is made (withought fighting it). I have refunded a chargeback for an order I hadn't even packaged up. It is hard to see because on the paypal transaction page none of these fees are displayed until you dig a little deeper.

Re: Credit Card Chargback

dylan11235813 — Fri, 20 Jun 2014 15:15:56 GMT

To add to my last post about a chargback that I had without having sent the item yet. Does this mean I would have been better off sending the item out by registered post for $3.50 and winning a paypal claim, as apposed to just refunding the buyer and getting hit with the $15 fee? Or are all chargbacks instantly a $15 fee.

Re: Credit Card Chargback

clarry100 — Fri, 20 Jun 2014 21:19:03 GMT

We got one of these earlier in the year for an $8 item.

We chose not to fight it as we also had no seller protection as we use large letters.

The $8 was frozen and never refunded. We were also billed the $15 fee.

So we contacted the buyer about it and she agreed to send us the $8 and the $15. Most unexpected we thought.

She was very apologetic but refused to say what actually happened.

We gave her our bank details and it showed up a couple of days later.

To this day we never heard any more about it from PayPal. But due to the buyer refund we were not out of pocket so we never worried about chasing it any further.

Re: Credit Card Chargback

putney32 — Sat, 21 Jun 2014 01:30:13 GMT

@clarry100 wrote:

So we contacted the buyer about it and she agreed to send us the $8 and the $15. Most unexpected we thought.
She was very apologetic but refused to say what actually happened.
We gave her our bank details and it showed up a couple of days later.

To this day we never heard any more about it from PayPal. But due to the buyer refund we were not out of pocket so we never worried about chasing it any further.

some chargebacks are initiated by the Bank because the ''buyer'' is overdrawn on their c/card and not paying the monthly minimum payment.

Re: Credit Card Chargback

Anonymous — Sat, 21 Jun 2014 04:15:02 GMT

A seller really should have the option of whether or not to accept credit card payments via PayPal.

If we are forced to accept cc payments via PayPal then it should be PayPal's lookout and not ours

when chargebacks are initiated.

I couldn't care less if a buyer chooses to back out. Better that than waiting 6 months or more for an all clear.

Re: Credit Card Chargback

5kazam — Sat, 21 Jun 2014 04:34:08 GMT

The dumb blonde question here!!

If someone pays through PayPal - how do we (sellers) know if they have paid by C/C, via their bank account, or PayPal account balance?

The email from PayPayl only states 'Notification of Instant Payment received.....blah, blah'

It doesn't state the method of payment.

Re: Credit Card Chargback

digital*ghost — Sat, 21 Jun 2014 05:50:12 GMT

@5kazam wrote:
The dumb blonde question here!!

If someone pays through PayPal - how do we (sellers) know if they have paid by C/C, via their bank account, or PayPal account balance?

The email from PayPayl only states 'Notification of Instant Payment received.....blah, blah'

It doesn't state the method of payment.

You'll never know unless they pay by eCheque, as those can only be funded by a bank account (without a credit / debit card attached to make it instant).

In regards to the $15 fee - the only time the seller won't have to pay it is if they qualify for Seller Protection, so presumably if you fight and win, they still impose the fee (it used to be the only time you would pay the fee is if you fought the chargeback and lost, so that if you accepted liability without fighting, or fought and won, you wouldn't have to pay it).