How does a lost chargeback get paid

[madhi]

Hello, If a seller on ebay sells a $5000 item (an individual seller with a linked checking account, not a business), and subsequently the buyer pays for and receives the item using a credit card.  Then months later the buyer submits a chargeback claim with their credit card bank (not via ebay), stating the item was not as described.   My question is:  if the buyer wins the chargeback, how does the money get returned to the buyer.   I understand the buyer's credit card bank will issue the buyer a permanent refund for the purchase.  But how will they get the money from the seller?  Does ebay pull the money out of the seller's linked checking account and return it to the buyer's bank?  What if the seller doesn't have the $5000 in the checking account anymore?

I am curious because I know somebody in this exact situation and I am wondering how the money is getting returned.  Thanks so much for any info

[greatstuff80]

Ebay will most likely take the money from your linked account. If there is not enough, they'll hold up everything on your account until they get it. It can be a horrible mess. It happened to a friend. They lost 1k and the item. Do not sell expensive stuff on ebay unless you can afford t lose it. 

[heckofagame]

Yes, they will put a balance owed on the seller's eBay account. 

If it goes unpaid for a long enough, then the seller account will most likely be restricted and then eventually closed and they may file a case with a debt collection agency.

[siliconalleyelectronics]

Unfortunately this is a common issue with selling in general, not just eBay. Everyone from eBay sellers and people with their own website to auto repair shops and physical stores deal with people abusing CC chargebacks. With eBay, you will have a negative balance added to your account and can deduct the funds directly from any bank account linked with eBay. If there are still insufficient funds then you will be hearing from a collections agency and your account will be restricted until the balance is paid. It's even worse when you're selling on your own, banks will do the same thing but can sometimes deduct a % higher than what is owed under the chargeback to cover "risk of loss", this all depends on the contract with the payment providers. There are people that have had 5 digit sums deducted and withheld for similar $5k chargebacks, you get charged a chargeback fee of around $35 on top of that too. On top of all of this, with eBay you get a whole 15mb JPEG and no text option to defend yourself with.