Chargeback Made On PayPal, Only Seller Protection Unless Paypal Wins?

[theanswerreturns]

Received an email last night that a buyer filed a chargeback on Paypal for a $165 item.  Reason for the chargeback was Unauthorized Purchase.  Item was delivered and signed for a week ago.  Never heard a word from the customer, just this chargeback a week later.

I find it highly unlikely this was an Unauthorized Purchase.  Perhaps they didn't recognize the transaction on their statement or (what I believe to be more likely) they are trying to get something for nothing.  I called PayPal they said they had all the information they needed and that with this info they win these 80% of the time, but if they don't win it I'm out the money.  

So is it just a waiting game now?  I'm thinking about messaging the buyer through eBay, giving them the benefit of the doubt that is may be a mistake on their end.  Guess I have nothing to lose.

[corvettestainless]

I had the same happen, 3 items to same customer ordered about 1 week apart. Turns out his CC was stolen/lost, so when he reports, the CC company does chargebacks on all items purchased the past 30 days/60 days (whatever their policy is) and then when the responses come back (proof of delivery to address etc.) they are then reversed. Owner of card was not aware. I blocked customer- he emailed and we discussed. Charge backs were all 'reversed' so no money lost. 

[csbbct]

I'm also hoping it was an error.  The only charge back I've ever had, I contacted the buyer and they said it was a mistake.  There were some unauthorized purchases on her card and when she contacted the credit card company they put charge backs on every purchase she had made that month until they straightened it out.  Within a few days the credit card company reversed the charge back - to give you hope...

[buyselljack2016]

PP should cover it if sent to the address provided.  Should, but time will tell if they do or not.

They should cover it even if the CC company finds in the buyer's favor.

That is part of the reason why we pay them the %age to handle the the transfer of funds. 

[theanswerreturns]

@csbbct @corvettestainless 

Thanks for the information, hoping that is the case.  I'm going to email the buyer and ask what's going on.   If I don't get a response I guess I will assume I'm being scammed.  

[theanswerreturns]

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@buyselljack2016 wrote:

PP should cover it if sent to the address provided.  Should, but time will tell if they do or not.

They should cover it even if the CC company finds in the buyer's favor.

That is part of the reason why we pay them the %age to handle the the transfer of funds. 

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That's what I thought.  But the Paypal representative told me basically they just fight it on my behalf and won't withhold the funds from my account unless a decision is made in the buyers favor.  Considering I followed the Seller Protection standards to a T and even have signature confirmation (which wasn't required) I was under the impression I would be covered.

[7606dennis]

Actually, unless the policy has been changed, if a charge back for unauthorized use is filed and the seller can show that they have shipped the item to the ship to address on the payment transaction details, the seller is protected and any resulting refunds are paid for by PayPal and not the seller.  Only proof of shipping is required and not proof of delivery. 

[theanswerreturns]

I emailed the guy.  I did a little research, guy owns a custom elevator company and lives in a 1.5 million dollar home.  So I'm hoping this is just a case of his card got stolen and a series of transactions where flagged in a certain time period.  If not I don't know what the deal is with a millionaire filing a chargeback on a $165 item...  This was not an unauthorized transaction though, purchased through his eBay and PayPal account, sent to a verified address I found information online he lives at and it was signed for.

[theanswerreturns]

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@7606dennis wrote:

Actually, unless the policy has been changed, if a charge back for unauthorized use is filed and the seller can show that they have shipped the item to the ship to address on the payment transaction details, the seller is protected and any resulting refunds are paid for by PayPal and not the seller.  Only proof of shipping is required and not proof of delivery. 

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Yea, hope you are right.  Perhaps the guy I talked to didn't know what he was talking about.  But looking through Paypal's site they are very vague.  Basically the most definite thing I can find is if you meet Seller Protection terms they will waive the $20 fee they usually charge on a chargeback, I cannot find anything that says they will cover the transaction.

[theanswerreturns]

@7606dennis @buyselljack2016 @csbbct @corvettestainless 

Okay well I did find this: https://www.paypal.com/us/smarthelp/article/FAQ2036

The very end says:

PayPal charges a fee (based on the currency received) to the seller when the buyer files a chargeback with his/her credit card issuer. If the transaction is protected by Seller Protection Policy, PayPal will cover the amount of the chargeback and waive the chargeback fee. You can view the chargeback fee and process in our User Agreement.

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So I SHOULD be covered.  But they are being weaselly and saying that means they won't hold the funds while the decision is being made by the credit card company. 

[3eyedfishcatcher]

You need to call PayPal and talk to them if you have a tracking number showing the item was shipped you should be covered. 

[theanswerreturns]

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@3eyedfishcatcher wrote:

You need to call PayPal and talk to them if you have a tracking number showing the item was shipped you should be covered. 

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I called them before posting here. C/S told me they aren't going to hold the funds but if the credit company rules in the buyers favor there is nothing they can do, because they aren't going through PayPal they are going through whatever source they paid with.  Could he be miss informed, maybe, but that's what I was told.  Item was sent to verified address, marked delivered with tracking and signature.

[theanswerreturns · Accepted solution]

@3eyedfishcatcher @7606dennis @buyselljack2016 @csbbct @corvettestainless 

LOL, okay I contacted PayPal again.  Talked to someone different and they said they don't know what that other guy I talked to was talking about.  I am covered no matter what.  So who knows, but by what you guys are saying, what I've found on other places and one out of two conversations with PayPal I'm covered...

[3eyedfishcatcher]

When I first started a buyer tried this after they got their item a few months later all I had to do is upload the tracking into the claim on PayPal's. resolution center. It is kind of redundant as they have the tracking from the sales record but I imagine it is a small hoop to make sellers jump through so if they do not jump the seller pays and not them.

Even if you do not have a sell you still should check PayPal daily for issues like this.

[richard1rst]

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@theanswerreturns wrote:

@csbbct @corvettestainless 

Thanks for the information, hoping that is the case.  I'm going to email the buyer and ask what's going on.   If I don't get a response I guess I will assume I'm being scammed.  

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NO NO NO

Email PAYPAL and provide them with the tracking number and the delivery confirmation from USPS (or whoever you used).

When you access your Paypal page look for a link to the resolution center. That will take you to the case. Provide PAYPAL with the information. If it was in fact delivered to the address on your Paypal screen YOU ARE PROTECTED AGAINSTY CHARGE BACKS. I say this with certainty as I have been through this more than once. I ALWAYS won.