Credit Card Chargback

[dylan11235813]

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.

[clarry100]

DG....

We just received our own private credit card statement from Citibank yesterday.

Included was a rather lengthy little document outlining changes to their terms & conditions of use of their issued CC's.

What it bolied down to was they are placing a heavier responsibility on the CC user/owner to accept that they MUST be careful with the use of their card.

ie if the bank deems that the user did not take take due care they will be responsible for any payments not made/authorised by them.

I don't know if such changes are across the board with all banks but it seems to be going some way towards making the card user/owner accept responsibility.

So be secure or loose the $$$!

[thecatspjs]

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@digital*ghost wrote:

The seller won't be if they qualify for seller protection, it's not ideal - I liked it more the old way - but it is avoidable in many circumstances. 

It's actually a bit worse now that a seller can not qualify for protection if the buyer doesn't log into a PP account to pay. 😞

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So Paypal policies say.

I personally question that if tested by FSO investigation that the charge worn by a trader would stick, as Paypal are placing sellers at an unacceptable risk of being defrauded. 

[digital*ghost]

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@thecatspjs wrote:

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So Paypal policies say.

I personally question that if tested by FSO investigation that the charge worn by a trader would stick, as Paypal are placing sellers at an unacceptable risk of being defrauded. 

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I guess it would depend on how using a credit card via a PayPal guest checkout compares to any other merchant facility where creating an account with the payment processor is not even possible, and what (if any) protections are available, or supposed to be.

@clarry - I hope so, the thought of a PayPal / CC chargeback makes me a bit  becaue I reckon it'd be a bit like watching someone steal from me and only being able to do something about it if I can prove I actually handed it to them before they made off with it. o_O

[phorum_junkie*]

If the claim is for unauthorised use as opposed to an item not received or not as described then it is always worth contacting the buyer and demanding payment  or you will report them to the police for obtaining goods by deception or fraud depending on if they have wrongly claimed somebody else used their card or they have used another person's card. Of course with no proof of delivery it would only be a bluff but if you have tracking even though it is not up to Paypal standard you may scare them into paying for both the goods and any charge which is made by the bank and passed on by Paypal.

[thecatspjs]

 I don't think Paypals setup is so easily compared directly to other merchant credit card setups.  Many just link direct via a mainstream banking credit card processing.

I think of Paypal as the piggy in middle

[5kazam]

Thank you for understanding where I was coming from. It is the bank/PayPal and buyer who should bear the 'fees' in those cases - not the seller.

[digital*ghost]

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@thecatspjs wrote:

I think of Paypal as the piggy in middle

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Lithe and agile piggy, though, despite their snaffling - when I used to play that game as a kid, my success rate at catching the 'prize' was pretty low. 

Spoiler

Most of the time, though, I was unwillingly playing it and it was called 'keepaway' - how did I get to be one of the, erm... 'tossers' and still not have the prize? o_O

I'm not sure if that's a rhetorical question or if the answer is in the question itself. 

[haolove13]

Many years ago Ebay was a convenient marketplace along with several other sites. You could receive payments by cash, direct deposit, money order, or cheque. The fees were 1/3 of what they are now.

Then along came paypal with fees three times what I paid through my business account credit card facility.

Now we even pay ten percent on postage despite being unable to charge excessive postage.

Then they made it compulsory to offer paypal despite the fact it was three times what my credit card provider charges and added thirty cents per transaction just to make it ridiculously expensive.

now it costs 15.00 dollars to initiate a chargeback. There is no responsibility to offer justice or truth, just contributemore profit to Ebay.

Previously i spent 20 cents to get authority from my credit card provider.

Now I lose ten percent of my sales to false claims, unsubstantiated claims, and just plain rip offs with no legal claim against a swiss bank.

Buyers can make claims because of perceived difficulties and no actual factual evidence.

And the same six people keep defending the indefensible. 2.4 % or 3.4% to a very overpriced provider and add thirty cents per transaction just to make it even more profitable. And add ten percent to that for good measure.

And all this to people who do not offer tax invoices so my business can not claim GST and rip millions of dollars out of the Australian Economy without paying 1 cent of Australian Tax.

So who votes for the alltime ripp off ??????????????????

[*crikey*mate*]

ummmm the reason you can't claim GST is because you haven't paid any GST

[j*oono]

That's an odd statement to make.

Now we even pay ten percent on postage despite being unable to charge excessive postage.

I know you didn't mean it that way.  It's difficult to compete against the big sellers.  As a some times seller ebay is much cheaper for me to list on now.  Free to list and the final value fee is reasonable and the world wide advertising is great.  Paypal is the icing on the cake because now I don't even have to keep checking my bank account to see if I have been paid.  Love that so much 🙂