Get this beauty from paypal.

[robinsonmarineparts]

Dear XXXXXXX,

We were recently notified that one of your buyers has requested a
chargeback and asked their credit or debit card issuer to reverse a payment
made to you on 24 Feb 2014.

The buyer claims that this purchase was made without authorisation to use
the credit or debit card. Their card issuer needs additional information
from you about this transaction.

What to do next
-----------------------------------

Please respond within 10 days so that we can help resolve this chargeback.
To respond, log in to your PayPal account and go to the Resolution Centre
to provide information about this transaction.

The credit or debit card issuer, not PayPal, decides if the buyer's claim
is legitimate. Once the card issuer receives your information, it may take
up to 75 days to make a final decision.

Because the card issuer has reversed the charge for this transaction, we've
placed a temporary hold on the funds until the case is resolved. This hold
only applies to the funds for this transaction. You can access any
remaining balance of funds in your PayPal account. Our user agreement
explains our policies on holding funds.


The buyer has the hour meter, paypal excepted the credit card and now they put a hold on my funds.  

[digital*ghost]

On some occasions, the chargeback is initiated by the bank because the cardholder has defaulted on repayments, which is wrong IMHO, but it does happen. 

I don't know how many sellers keep up to date with all of PayPal's changes to their policies, but while I'm here, I thought I'd mention some of the new limitations to the eligibility requirements for Seller Protection. They may have extended protection to payments off-eBay, but they limited it in other ways and now, not all payments received (even via eBay) for what would otherwise be eligible transactions, will actually be eligible for protection.

https://www.paypal.com/webapps/mpp/ua/useragreement-full#Schedule_1_PayPal_Seller_and_Buyer_Protecti...

Basically, what it says it that a buyer has to log into a PayPal account for SP to be available on a transaction, which AFAIK, is a recent change.

[digital*ghost]

---

@robinsonmarineparts wrote:

This must be considered as fraud?

---

Someone has done something wrong, but unfortunately by offering PayPal there are times when a seller will be forced to accept liability for other's wrongdoing 😞 . I can only imagine how frustrating it is, as I haven't had to deal with a chargeback as yet, but to me it would seem a bit like having to watch someone steal from your shop but not be able to try and stop them in any way (in instances where you can't fight the chargeback and/or qualify for protection, anyway).

The problem is, you are unlikely to know whether the chargeback itself is legitimate. The person who purchased from you may or may not be the owner of the credit card that was used to pay for the purchase, but they have definitely done something not quite right (be it using a card they have no right to, making a fraudulent claim for unathorised use if they are the cardholder, or defaulting on their repayments), so by all rights they should have full accountability, but if they used someone else's credit card to pay you, then technically the cardholder and bank are doing the right thing and either you or PayPal get stuck with the bill for someone else's misdeed. 😞

[ajarnjenny]

I sell on Etsy (among others) and a woman I know from there, had this happen to the tune of $450 for a custom made and painted children's table and chairs.

She had about twenty in house messages from this customer, about what colour and what style and the seller sent it tracked and it showed signed delivery confirmation and the customer did a chargeback for unauthorised use, saying that she had never ordered or received this item and the seller lost the case!

She emailed me just this morning and said that she appealed and the case was reversed and she got her money back.

It took three months!

[robinsonmarineparts]

To be honest i haven't keepted up to date with paypal because there's nil i can do about there wonderfull policies.

[robinsonmarineparts]

As stated we don't except C.C's, if Pay Pal want to, then the onus should fall back on to pay pal not the seller.

[2106greencat]

Totally.

Fight to the death on this one robin.

[digital*ghost]

---

@robinsonmarineparts wrote:

As stated we don't except C.C's, if Pay Pal want to, then the onus should fall back on to pay pal not the seller.

---

PayPal is advertised as a payment processing facility that is a cost effective alternative to merchant facilities, and enables sellers to accept various forms of payment, including credit cards, which effectively means by offering and accepting PayPal, by virtue you accept payments via whichever form the buyer chooses to make. That is, the possibility that buyers will fund payments with credit cards and that payment then be subject to a chargeback is something that is made known to all sellers who sign up, and by doing so, when you agree to their T&Cs, you acknowledge and accept that risk.

The agreement you have with PayPal isn't that they accept credit card payments on your behalf and provide the funds whether it's cleared etc or not, just that they process the payments. I don't mean that to sound harsh or insenitive, it just is what it is, and I hope you are successful with defending the chargeback (it sounds like you should be, and I'm sure there will be people who can advise the action to take if PayPal deny seller protection for some reason). 

There is currently no way to sell on eBay without offering a payment method that accepts credit card payments, and truth be told PayPal is still the safest out of the bunch for sellers because they are the only ones who will grant Seller Protection for legitimate chargebacks (that means even if the chargeback is successful, the seller keeps the money - none of the others offer that, but you do have to meet the right eligibility requirements). Outside of eBay, there are some PayPal settings that enable a seller to adjust the kind of payments they will exclude, but none of them extend to excluding credit cards as far as I know (you can prevent eCheques, and/or make it so that buyers can only use CC's, but not the other way 'round). 

[robinsonmarineparts]

Here's Paypals latest -

We've noticed that you've received a 'chargeback'. This happens when a buyer asks their credit card issuer to reverse a transaction that has already been approved. The credit card company then refunds the buyer and the money is automatically debited from your PayPal account.

Why do chargebacks occur?
There are a few reasons why a buyer would request a chargeback. These include:

	Item not received The buyer pays for an item, but never receives it
	Item significantly not as described The buyer pays for an item, but when they receive the item, it is significantly different from the way it was described
	Unauthorised use A buyer's credit card number is stolen and used fraudulently

How do you resolve a chargeback?
It's our aim to work with you to resolve a chargeback as quickly and easily as possible. Sometimes you may be successful in disputing a chargeback, but that may not always happen. We know that chargebacks can be daunting and a drain on business. So we've put together some useful information to assist you in resolving chargebacks with tips on managing risk for the future.

I like this bit "How do you resolve a chargeback?"

I think that's funny, Paypal except the C.C. then hold my money a ramson when there is a problem.

[press_play_au]

Ha, I am going through the exact same thing. Mine was from the 23rd of February. Was the buyer situated in Rhode Island by any chance?

It's a total outrage.

[robinsonmarineparts]

lol, sorry, it's not funny.

No there not from R.I

I just sent the buyer a nice little note explaining that if his card was misused that that is a crimimal act and he should contact his local Police as i will be contacting my local Police on his behalf. ha ha

Us (not USA) sellers just keep on getting kicked in the guts from ebay, paypal, and some buyers, i'm not going to let this go until i have no futher avenue.

I hope you have a favourable outcome with your case.