Chargeback Fraud

[IguanaCharters]

Hi, 

I wish to receive information on how I can fight a fraudulent chargeback that was been refunded to a customer. 

We are a small travel agency that offers cruise to the Galapagos Islands.  We sold a cruise (7 people) + flights and more. Totalling around $16,000USD.  The customer received all services and was extremely happy with our service (all this documentation + flight tickets + cruise voucher of services + emails sent to paypal).  

I personally wrote to the customer to recieve feedback on the cruise and she explained that on one day the cuise had to refuel and they lost a few hours of activities and wanted a refund. I told her that I would write the service provider (cruise) about this and try to get her a refund. The cruise operator offered a $150USD per person refund, then a $200USD per person refund (almost entire cost per day). Then I get a notification from paypal that she has claimed a chargeback as "Item not received" and requested a refund for over half the cost of the cruise for 7 people ($6,600USD). We are an agency and only gain a 10% comission - only on the cruise and in this case much less as we offered all discounts possible. At this point I sent over 15 documents to paypal with all possible documentation and call as well when they explained I have sent everything and that I will get my money back, and that they are fighting for me. I also wrote to the passenger and she explained that she feels sorry and never wanted me to get in the middle of this (lie).  After a weeks time I get a notification that she received the cahrgeback and $6,600 from my money (not the cuise company money) was deducted from my account.  The customer maneged to get (fraudulently) over a 50% refund for a couple of hours of a problem on a cruise I sold with a 40% discount.  I sent all documentation that she received all services, was 100% happy with our service plus all policies that explain that itineraries are subjet to change and much more.  I want to know why paypal helps this modus operandi way of traveling. And how I can fight to get my money back.

* It is impossible as a service provider to have seller protection, as we do not ship products. 

[kernowlass]

@IguanaCharters

If you think its unfair (which it certainly sounds like) then you can pursue her in the small claims court and if they find in your favour you may get some of your money back.

HOWEVER a chargeback is not decided by paypal, a chargeback is filed by a buyer directly through their credit card company.

Paypal then pass over any information that you have sent them in your defence to that card company and they are the ones that make the decision.

If you lost out, which you did, then normally paypal would reimburse you under seller protection but as you have found out you were not covered by seller protection.

To be honest if she had paid directly via her card company and not via paypal you would probably be in the same position.

[IguanaCharters]

How can I obtain proof that paypal sent (to the credit card company) all the documentation I sent them ?  Do I need to contact the credit card comany or can just fight this with the customer?  I cant understand how they can act with no investigation or contact with the service operator and with all the evidence and documentation sent. 

[kernowlass]

@IguanaCharters

Sorry i can only give general advice, you would have to speak to someone legally trained for advice on taking it further and how to obtain that proof.