@luckythewinner wrote:
Most People tell you here " Oh well Ebay will back you up"
Most comments I read on here say that if the buyer files a "Not As Described" , charge back, the seller will almost always lose.
Ebay states its a platform, they are only here to take their part
eBay policy is pretty clear that Managed Payments is a payment processor, and that Managed Payments will actively manage payments.
Chargebacks on the rise all over the Internet from here to Mamazon to Walmart and its a BIG problem that is going to get solved. The question is how and that HOW is likely to be a "Care less about cottage online sellers." It's the retailers being affected.
eBay does not mitigate chargebacks, they are the merchant of record just as if you had a merchant account you don't get to determine who's right and wrong. That responsibility usually falls upon the card aggregate processor as they are the most independent entity versus merchant provider or consumer bank.
There are variances of standard process. Standard process is the moment a chargeback takes place funds are reserved in you're bank account for the total charged. A $25 fee is assessed by your bank, processing fee. Another $25 fee will be assessed by the Merchant Account Provider and another $25 fee assessed by the Card Processor (Say Wells Fargo) doesn't matter if the total were $500 dollars or one dollar. Now if the vendor disputes the chargeback some merchant account providers will assess another $25 fee for EACH response to the chargeback, others may not.
Here funds reserve on you're eBay account versus you're bank but if the chargeback is found in favor of the consumer then they'll draw off a funding source. Not all that different than simply refunding per se in account level funds. That's different.
Adyen is the card processor not eBay. eBay has a software gateway to the payment processor no different than say Kohls does. eBay has a form to dispute chargeback which is assessed a $20 fee to use, that $20 likely goes to Adyen's dispute/risk assessment unit.
Solving such things is a real problem that has NEVER had an adequate solution, just like the he said/she said of say Feedback has no perfect solution. A big part of the problem is that as you can see above banks make money coming and going. They make money on interest of credit cards, money off debit cards using consumer checking account monies, there's money floats about as merchants are charged whats known as "The Discount Rate" (How much percentile commission is paid on the total charge, term Discount Rate makes NO SENSE right?) As you can see, even make money on chargebacks.
eBay in a way mimics seller (merchant) risk assessment so if an account falls within a problems ratio they charge extra FVF commission. Merchant account with chargebacks on ratio to sales w/o issues may up that "Discount Rate" to the merchant. Its meant to encourage better business practices.
On the consumer side it is tracked and no doubt eBay tracks folks who do chargebacks but historically with mail order (online) due to the dysconnectivity of merchant/consumer the consumer tends to win Chargebacks by lying. Retail chargeback different deal as the consumer has hard goods in hand, checks out and the retailer has capability to directly replace if something is defective. Normally a defective TV come back for replacement, gets inspected by someone at the location for example before chargeback even be a thought. Aka: "The consumer never came back into our store to speak of replacement, store credit or refund." Point being retail is more defensible.
Now all that said, back in the day when there were heaps of business to consumer points of sale that had many vendors aboard like Onsale, Surplus Direct, Auction World, iDeal Networks etc they three models.
1. The vendor performs fulfillment and money processing via their own merchant account.
2. The vendor was an anchor vendor (agreeing to terms/volume) and the point of sale do charges and the vendor ship under said terms/volume.
3. The vendor ship products to the point of sale and the POS does both charges and fulfillment.
The numbers being reported of "Friendly Fraud" as its called are staggering and the card franchises point at Gen Z folks as the #1 aggregator, over 60%. Now just via simple searches online you'll see some places have run polls whereby 20%+ of respondents have said they have committed friendly first person fraud and were perfectly fine with what they received. Thats STAGGERING.
Now if it were ONLY retailers involved there are some clear ways to cope with it as its VERY unlikely retailers are sending out heaps of hosed products and more processes can be made that are preventative in conjunction with card franchises, banks and end retailers. But for these open marketplaces, well, big big problem.
