Help with Buyer Opening PayPal case for Unauthorized Transaction

[bluecuda1971]

I received an email this afternoon that a PayPal case opened for an item I recently sold. It was delivered 04/28 and the case was opened today 05/05. My PayPal balance is already showing negative.

Is this a PayPal dispute or a chargeback, and what is the best way to handle it? I print my labels directly though eBay and shipped to a confirmed address. The buyer’s address on eBay, PayPal and where the tracking shows the package was delivered are all a match.

This is something I've never been through before and it's very frustrating so I appreciate everyone's help. I know it's always best to get your ducks in a row before calling eBay or PayPal.

Thanks to all who can help. 🙂

[bluecuda1971]

That's good advice. I did have a balance in PayPal at the time, but the sale amount was greater then that. So when the funds were held, that's why it went into the negative.

[missjen831]

You don’t need to contact PayPal then. The chargeback will stay open until the bank makes its decision. PayPal credited you the amount so you are good to go for now 🙂

[the*dog*ate*my*tablecloth]

It's not odd. In fact some of these turn out where the buyer knows nothing about the chargeback. Sometimes they are initiated because the credit card or bank thinks something looks odd. Sometimes they happen when a card is hacked and the buyer has to go through everything from around that period to verify whether they are correct charges.

I put a ton of stuff through my credit card every month. It's really not that hard to have charges go through that I have to work out when I get the statement. Maybe if you only buy a few things a month it's easy. My credit card buys inventory for my business as well as everything personal I can put on it. 

[bluecuda1971]

They actually didn't credit the entire amount, just enough to bring the account balance back to $0. That's fine for now so I can use the account for things like shipping labels.

So now I'm not sure what's going to happen when the chargeback is settled... if they will remove the credit or just refund the amount less the credit. I'm still confused as to why they can put money into my account as a courtesy, but not close the case. 🙂

[tunicaslot]

How true - many credit card companies and banks are being overly protective of their customers these days due to scams and the threat of accounts being hijacked. Last year one of the credit cards was denied at a gas station while on our way down to Alabama from NY. When I called the cc - it was because they thought the card may have been stolen as we had never used it for out of state transactions. A few months ago - while at the casino - I tried to withdraw cash from the ATM and was denied. When I called - I was told that they feared my card had been stolen - even tho I've made similar transactions during the past 10 years at the same casino. It's frustrating but then I'm thankful that they have these precautions in place - just in case. 

[ymeagainlord]

I'm not sure why they changed it. It used to be that once PP verified you qualified for Seller Protection the case would vanish (as far as you were concerned), but now they seem to want to keep it showing on your screen until the case with the cc company actually closes.

It's annoying as hell to have to see it every time you log in for what can be up to 90 days.

[missjen831]

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@ymeagainlord wrote:
I'm not sure why they changed it. It used to be that once PP verified you qualified for Seller Protection the case would vanish (as far as you were concerned), but now they seem to want to keep it showing on your screen until the case with the cc company actually closes.

It's annoying as hell to have to see it every time you log in for what can be up to 90 days.

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PP has been sneaky lately and it seems they have taken a page out of ebays playbook. Some sellers have been hit with UA chargebacks and LOST plus gotten hit with the $20 fee despite providing proof of shipment. A call to PayPal to remind them of the seller protection policy has gotten them a refund but still. PayPal is not honoring their own policy at times. 

[ymeagainlord]

It's only been like this since YKW left eBay and went to PP.

[pjcdn2005]

Shortly after I read this thread I was checking my email and noticed that I have an unauthorized chargeback as well. The email says that they see that there is a tracking number entered and they will let me know what the result of the case is....I'm paraphrasing.   There is no hold on the funds though and I wonder how they decide if they are going to put a hold them......is it based on how much money is in your PP account? I definitely have enough to cover it and consistently have more than that amount in my account.

I haven't had one of these in quite a while but haven't ever had a problem winning them or getting them closed right away. However, I did have an inr in PP a few months ago...the item was in transit...but even after the tracking showed the item as being delivered, it took a few days for the case to close so they are being fairly slow to close things these days.

[myboardid]

A few years ago I had one of these Unauthorized Use cases, which I won, eventually.  It took 5 months before the case was closed. 

[jklfindings]

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@missjen831 wrote:

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@ymeagainlord wrote:
I'm not sure why they changed it. It used to be that once PP verified you qualified for Seller Protection the case would vanish (as far as you were concerned), but now they seem to want to keep it showing on your screen until the case with the cc company actually closes.

It's annoying as hell to have to see it every time you log in for what can be up to 90 days.

---

PP has been sneaky lately and it seems they have taken a page out of ebays playbook. Some sellers have been hit with UA chargebacks and LOST plus gotten hit with the $20 fee despite providing proof of shipment. A call to PayPal to remind them of the seller protection policy has gotten them a refund but still. PayPal is not honoring their own policy at times. 

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It's odd how Paypal picks and chooses what to do with chargebacks.  I had a $25 unauthorized chargeback 2 weeks ago.  Called on a Saturday, and got the run around.  Called back Monday and got the "your seller protection is good, so we'll release the funds and don't worry about a chargeback fee, you're covered".

[mudshark61369]

@bluecuda1971,

I just went through the same thing with PayPal. The case was opened on March 30, Unfortunately, the case history is now abbreviated and only shows 4 messages, whereas last week there were 8 notifications.

March 30;  Unauthorized payment filed by buyers financial institution.

Item Purchased by XXX on December 29, 2017. (just over 60 days after the item was paid for and shipped)

The buyer disputed the payment of X$ for the following reason: Unauthorized Payment. We were notified about the dispute by the buyers financial institution. 

Submitted tracking number and carrier USPS for proof of shipment.

April 6,

Disputing with buyers financial institution on your behalf

We are withholding the amount of $XX.XX from your account pending outcome of case... submitted tracking information that confirms delivery to buyer's address. No other action is required by you at this time. 

April 8,

The amount of $XX.XX is no longer being held and is available for use. No other action is required of you at this time.

April 9,

Case Closed.

April 11,

Status Changed to being reviewed by PayPal.

April 13,

I found the email address to send information, even though no action was required by me.  I sent a scan of the lower half of the shipping label. W/ Transaction number, Item number, Shipping info, Tracking #, etc. as proof.

April 16, 

Called Customer service, to make sure my email was received, and ask what would happen, if the seller's bank won the dispute.  Got an American rep, and was told I could be responsible for the funds.  I reminded the rep that the item was covered by their seller protection, so I should not be out any money. She then said the info you provided would likely prove to the bank, I had shipped an item purchased by the buyer, and they would drop the dispute.

May 1,

Case Closed

However, I received this email the same day.

 "We received notice from the buyer's financial institution that Case ID PP-D-XXXXXX has been decided in the buyer's favor. However, because you’re a valued customer, we’re not debiting your PayPal account for the disputed amount.

Here are the case details:  .......... 

Thank you for your patience during this process.

We appreciate your business.

You can find additional information and tips about buying and selling safely at our Business Resource Center.

 I called the next day and asked about being a valued customer.  Asking if my business was so valued, why were funds withheld in the first place?  Then I asked if I would still have protection if this happened again, and was told "PayPal would make that determination if and when it happened".   

My advice at this point even if you have been told "No action is required on your part"  to send a scan of the lower half of the Label page if you saved it.   If you do not save them, start doing so. You can find the info to email a scan in the dispute history. There is a button in the dispute info for more details, or if you call ask the rep for the email address.  You might also want to message your buyer,and politely ask if they authorized the chargeback dispute, or if it was done without their knowledge by their card provider/bank.  Have them check with them if they did not open the dispute on their own, and find out why the transaction was disputed and if they can request it be closed.

[goodluckselling]

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@bluecuda1971 wrote:

Thanks for all the replies.

Unfortunately I’m getting the runaround from PayPal when I call. I’m told that despite being covered under PayPal’s seller protection, they cannot close the case until it is investigated by the bank (which according to them could take up to 90 days). They keep saying things like “while I believe you, there’s nothing we can do to close the case”. This despite the tracking number being uploaded into the case, and the addresses of the eBay and PayPal accounts, and address the USPS tracking number says delivered to are all the same.

It’s frustrating because my account is currently sitting with a negative balance, so I’m unable to ship an item I sold today. I guess I’m going to have to keep calling.

If anyone can provide a link to PayPal’s seller protection policy, I’d appreciate it. I’m having trouble finding it and I’d like to read it back to them word for word next time I call.

Thanks again.

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It usually takes about 10 days to 2 weeks after you uploaded the tracking number, if fact the last few we have recieved, Paypal already had the tracking number loaded into the case details, I just had to confirm the info and send it back.

Good Luck Selling!

[terrycanarsky]

We had a chargeback notice last week.  An international buyer bought, paid for, and was shipped something at the end of DECEMBER.  May 1st he/she reports it was an unauthorized purchase.   We provided the tracking showing shipping (and dates), PayPal closed in our favor PDQ.

Sometimes I wonder what people are thinking.

~M

[dtexley3]

I have a chargeback "investigation" that's been there for over 4 months now.  The buyer has notified the CC company multiple times that the charge is legitimate, we've notified paypal of this, but there it sits, waiting for the bank to close the investigation....