Paypal charge back for unauthorised use of credit card

[sexybumsaustralia]

Are any other members having any problems with Papal chargebacks for un authorised use of credit cards, in 10 years I had never had one and in a few weeks I have had 2.  Not happy about paying for an item and shipping costs then refunding money to the buyer due to an unauthorised payment that does not need be proven and then to add insult being charged a $15.00 fee on top.  I am worried that I am getting scammed and would like any genuine feedback from other sellers that have recently had any similar problems or suggestions. First item was shipped by Australia Post Ebay parcel with tracking however since chargeback all details on the Australia Post website have vanished and I have been unable to get any response from them.  

Cheers, Simon.

[davewil1964]

Provide Paypal with proof of lodgement and remind them that covers you for Seller Protection.

If you can't prove postage, you will unfortunately have to wear it. It is a good idea for the future to keep copies of the address labels AND lodgement receipts

[bigbrickshop]

Give C&S a call tomorrow on 1300 662 710 and they should be able to email you a copy of the shipping label.

[lyndal1838]

Does seller protection come into play when it is an unauthorised use of card claim?

The claim is not that the item did not arrive, but that the transaction was not authorised by the card holder.

[bigbrickshop]

Yes.

PayPal Seller Protection protects eligible eBay sellers against buyer claims, credit card and debit card chargebacks, and reversals due to:

• Unauthorised payments – for example, payments made with stolen credit cards and debit cards
• Buyers who claim they haven’t received items they purchased
• PayPal or the bank reverses a transaction for an eBay item it believes to be fraudulent

To be eligible for Seller Protection:

• Sell on an eBay site and accept payment to your Australian PayPal account
• Post the item via an Approved Postage Service to the address specified by the buyer on the Transaction Details page. Note: Sellers must provide one Proof of Shipment for each separate PayPal payment
• In the event of a chargeback or reversal, provide proof of shipment

https://www.paypal.com/au/webapps/mpp/security/sell-guaranteedpaymentsmlp

[jensmanchester-australia]

Lyndal - Seller Protection definitely covers sellers for chargebacks. IMO it is the only reason I need the Seller Protection as if an item gets lost I will automatically replace or refund.

[lyndal1838]

Thanks for clarifying Jen.

I am not a seller but I do remember reading on the boards a few months back a very detailed discussion of what was and was not covered.  I thought at the time that the general consensus was that proving postage made no difference to an Unauthorised Usage chargeback but it did cover for missing items.  Guess I was wrong.

[phorum_junkie*]

It is what seller protection is all about, if you can prove you have posted to the buyer's address then Paypal are meant to cover any refund to the bank. Of course getting them to comply is not always easy lol.

First I would contact the buyer as it is not unknown for the bank and/or Paypal to initiate a chargeback without the buyer's knowledge.

If no positive outcome then I would email the buyer or even send a 'real' letter informing them that the bank is doing a chargeback for fraudulent use and if they do not make payment for the goods you have proof were received by them by bank deposit (give them your details) within 48 hours you will be reporting them to the police for fraudulently obtaining goods.

[*not-2-shabby]

This very thing is happening to us. My buyer waited 2 months to start their fraudulent behaviour. We're down $152. But, apparently Paypal and Ebay have got my back, not sure whether they really do?? as it shows in our Paypal account we are negative $152. But apparently it wont affect other transaction?? It is very disappointing to say the least. We have sent proof the buyers received the items too as they went and onsold them via Ebay on the 18th of December, 3 weeks after I posted it off and they listed it via Ebay using the same photos and description I had on my original listing. What more proof do you need? They do get more helpful with every phone call you make to them though. I am not a full time seller so am probably not as savy as the full timer, but what would help me out as well as other sellers and buyers would be for Ebay and Paypal to keep a record of fraudulent behaviour, both sellers and buyers, see if there is a pattern of this type of behaviour, delist these people, don't allow them to sign up with a different account, report them to the appropriate authorities. Also Paypal could be more helpful, my first phone call, was extremely disappointing, "I need to do some detective work", I was told. They did not offer me much help, but a generic email, sent a couple of times, due to me calling them up 3 times. To get helpful advice from the email, you have to click onto the helpful advice link, log on again to Paypal, get redirected to some other jargon, ......bla bla bla, and eventually find the useful information. The more I looked onsite or via Ebay, the worse it looked for me, then the 3rd call I got my husband to talk to the guy and finally got some information I actually needed. This has been a very stressful time for both me and my family. What would of helped this situation initially is, if Paypal had better communication and less generic emails sent out in these situations. Being able to speak to an actual person easily would also be a fantastic service to give to your customers. I am not sure whether I will get my money back, hopefully I will, hopefully the bank will make criminal charges on the buyers for fraudulent behaviour, and hopefully Paypla will make it easier for the next person who goes through this very thing. Thankyou for the vent 🙂

[clarry100]

Back in November we experienced one of these chargebacks for the very same reason "unauthorised use". For a transaction that happened 3-months prior.

There was also another seller in our same category that wore it from the same buyer.

Our item was only $8.00 but the other seller was out of pocket about $300.

We also got slugged the $15 fee. The other seller got hit this fee for each and every transaction and there were multiple items in her case. Blatant ripoff by PayPal if you ask me.

We and the other seller both only use large letter postage. And this is where our protection came unstuck. Even tho it was clear that the buyer had received the items by their FB left. And that we had both done all the right things.

We contacted the buyer and they responded in a very aoplogetic manner and offered to transfer the $8 plus the $15 fee direct to our bank acocunt. Which they did for us. But the other seller only got promises but no actual funds.

So we ended up in a no-loss situation thankfully. But the other seller not so, even to this day.

Both eBay and PayPal were useless in this situation. Clearly they were unwilling to help. Just as long as they would not be out of pocket was all they cared. And of course the banks will NEVER lose. So the seller is the last in the pecking order and they lose.

We never found out exactly what happened as the buyer would not disclose that info.

And since then we have found out that if you accept payments that are backed by a credit card (almost all PayPal transactions) then you are subject to these chargebacks and you will most likely lose the case each and every time.

They are almost impossible to win.