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eBay cancelled order for sellers protection, weird scenario

So I have a odd situation here and curious if anyone has had this happen. So i sold a item late at night and then the next day i seen a message from eBay saying we cancelled a order for you protection. On the order it says do not refund, do not ship, so i called them because they paid for the item but have not sent it yet. The rep told me not to refund them and i asked what about the money cause i got paid for the item but have not shipped it. They put me on hold and then got back to me and they said they talked a supervisor or something like that, it was 2 months ago. They said the money is mine to keep and use as a i please. i said that seems very odd, its over 500 dollars. They said eBay will take care of the refund it will not come out of your account. I must have said something about it 10 times cause that did not seem right and now 2 months later i got a payment dispute from their bank and i dont have tracking but it gives me a option to explain to the institution. i have had payment disputes from the institution for chargebacks a couple times and always been covered by tracking and never had they put a hold on funds. 
When i got the dispute i called up eBay and the lady was like you can challenge it or refund the institution and she said i should just refund the institution but she did say i can challenge them with the information from the 1st phone call cause they do record the phone calls. they said i might win if they do that and i still might be protected but also if a loose it goes against me. Dont seem right for it go against me if i decide to contest, but at the same time they told me over and over to keep the money. even put me on hold to make sure.   

Now i will say i think the right thing to do for me is to just refund the institution.  Unsure i will think about it overnight and curious if others have had this situation and what would you do. 

Also i should state after they put me on hold they came back and were like i am unsure if i am allowed to tell you this but this buyer makes accounts and buys and scams. 

 

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eBay cancelled order for sellers protection, weird scenario


@incrediblefinds199 wrote:

They said the money is mine to keep and use as a i please. i said that seems very odd, its over 500 dollars. 


If the buyer paid say $500 total, including shipping and their sales tax

-- you'd get that $500 less the 15% or so eBay fees and less the buyer's sales tax, right? 

 


@incrediblefinds199 wrote:

now 2 months later i got a payment dispute from their bank and i dont have tracking but it gives me a option to explain to the institution. 


And now the payment dispute is for the entire $500 total

-- and you're expected to repay the 15% eBay fees plus the sales tax, money you didn't receive, is that right?

 

Just wondering @incrediblefinds199 from your 3 chargebacks, if you're expected to repay more than you were paid? Also, if you challenge it and lose, you'd have to pay eBay another $20 (which they might waive if you ask).

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eBay cancelled order for sellers protection, weird scenario

     This is a tough situation. First you cannot simply ignore the chargeback unless eBay has stated in the notification that they sent you that no action is required on your part. I have seen a number of posts like this but generally the seller has already shipped the item and the initial notification came too late. 

     What was the reason for the chargeback INR, NAD??  EBay has put you between a rock and a hard place. If you accept the dispute eBay will fully refund the buyer but probably still charge you the FVF's and possibly ding your metrics. If you challenge the dispute the financial institution is probably not going to care much about what eBay told you in the message if the buyer has not received the item. You will likely loose the chargeback, the buyer will get fully refunded, you will still be hit with the FVF's, the CC company will charge you $20 and eBay will likely ding your metrics. 

     While ethically it is wrong for you to keep the money you should not have to pay back more than you received which would be the case if eBay still charges you the FVF's. This is a case where you may wish to contact eBay through the facebook connection and talk to a knowledgeable support person rather than the front line tech support. 

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eBay cancelled order for sellers protection, weird scenario


@incrediblefinds199 wrote:

They said eBay will take care of the refund it will not come out of your account.

 

Now i will say i think the right thing to do for me is to just refund the institution. 

 


If the buyer has been refunded by eBay, then there is no reason for you to also refund ... but I suspect that you were getting some bad eBay customer service information back when this happened.

 

So, I think you need to contact the "higher level" eBay customer service that you can access through the social media apps like Facebook or Twitter.

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eBay cancelled order for sellers protection, weird scenario

Yeah it was a odd situation.  The chargeback was different than all others, i got it sorted out though.  As i mentioned eBay cancelled the sale so nothing got shipped. it was similar to other charge backs that people have claimed in the past but different wording, in those situations they never tied up funds and having the tracking i was covered. So i could have entered a tracking number but i never shipped it cause eBay cancelled the sale. I called like 3 times and got 3 different answers. Typical! I also talked to them via Facebook as i normally do but i got no where. its a lot easier to explain verbally cause its such a odd situation. I talked to the 1st rep and they gave me simple feedback and i went to go just pay it back and it was wanted me to refund the lump sum including 70 dollars in eBay fees. I called back again and told them it again and they told me to challenge it and i was covered and just write about the phone call when they said to keep the money, and take a pic of the message from eBay saying they cancelled the sale. So i tried that and nothing, it would not accept unless i put in a tracking number. I called again and instantly was like i think a manager is best to talk to and the rep of course tried to help me first and then finally talked to a manager. This time i got a good rep, well spoken. I worked with him and i mentioned the phone call and he was able to listen to the call and confirm they did tell me to keep it. they said consider it a bonus!! (messed up) he said unsure why they would tell you that, and back to the 1st call when they told me to keep it they kept putting me on hold to talk to a specialist and when the manager looked at the call, they put me on hold and never contacted a specialist, says the manager i am talking to. Apparently he can see if they put me on hold and who they talked to when they did. anyways this manager fixed it internally. unsure what exactly he did but i was like i just want to pay it back cause i never shipped it, but i did nothing wrong and i should not have to eat 70 dollars in eBay fees and i dont want any issues and i paid it back and only what i received no the eBay fees. 
So all set now but what a pain and time consumer that was all over a transaction cancelled by them. You gave a great solid answer!! 

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