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.

[cq_tech]

Something else I was just considering re Paypal's fees. I wonder if they add the 30c flagfall before or after they add the 2.4% or (3.4% for cross-border transactions). I realise the difference is only a fraction of a cent but if Paypal are performing several hundred thousand transactions daily, those fractions would ultimately total a considerable amount of money.

[haolove13]

They calculate commission on a ten dollar sale as this.
24 cents for 2.4% plus 30 cents.
The FVF is calculated separately thus the Ebay / paypal charge is a total of $ 1.53 which is 15.3 %
And if you pay $7.50 to post it the total charges are
S 7.50 postage, FVF's of $ 2.27
If you pay $5.00 wholesale for the item you will make a net profit of $2.72 less packaging costs.

So do not expect to take a holiday to the seaside as the profit does not even cover a bus fare to the city.

And pray you do not suffer false claims and chargebacks.

[*crikey*mate*]

so, change your product to one that suits the platform

not all categories have a capped shipping fee

and not all products are limited to little or no profit

[putney32]

---

@2106greencat wrote:

Pick your battles - seriously - $7.00 - the buyer must be in real dire straights to have to claim that back. LOL

---

gc,  I dont think in this instance it was the ''buyer'' claiming the seven bucks back, but rather his bank, 'cause his c/card a/c is in the red and he's not paying his bank....

so, the bank 'reverses' all transaction from when he went into the 'red'. (as 'unauthorized)

[englishrosegardens]

FVF on $15.80 postage is $1.56 and the paypal fee is 38c.

You've already paid the 30c paypal surcharge on the item and you don't pay it again on the postage.

If you want to apportion it between the item and the postage that's fine, but you aren't actually charged 38c + 30c on the postage by paypal.

I have no idea where you get a figure of 79c from but that is NOT the paypal fee on $15.80. 

$15.80 x 2.4% = $0.3792, rounded off to 38c.

Even if you add the 30c it's still only 68c.

If you want to cover the fvf & pp fees you have to charge $15.28 for a $13.40 satchel (not including the 30c).

That means you have to charge 1.14 times the actual cost.

This is assuming you're paying 9.9% in FVF.

Personally, if I was going to add it to anything I'd add it to the item price, not to the postage.

A lot of your other calculations are wrong too.

[davewil1964]

haolove likes to apportion all of the Paypal fee against the new postage FVF.

And has access to a merchant credit card facility and thus does not need to offer Paypal.