Bank chargeback

[Wenster]

I sold something to someone online, he paid the amount using PayPal - but using his bank for the funds. He is now threatening me to chargeback/dispute through his bank in attempts to scam me. What should I do in this case?

[sharpiemarker]

@Wenster 

Don't know the back story but try to resolve the problem with the buyer before it gets to that.

If you sold a tangible item, ask the buyer to open a PayPal dispute through the original transaction for Item Not As Described and accept a return for a refund.

With SNAD disputes, as sellers aren't protected against them, you're expected to accept a return if the problem was based on an error on your part as seller (ie. sent wrong item, damaged in transit, wrong quantity, materially different, counterfeit item, etc). If the buyer wants to return because of a buyer's remorse reason (ie. don't like item, don't fit, materially as described but not as expected, changed mind, etc), then PayPal won't rule for the buyer.

If you refuse to resolve the problem and the buyer files with their bank, you'll be charged an extra chargeback handling fee. If you received an item back that is not in the condition or the item you sold, you may appeal and report buyer abuse of the purchase protection program.

[Wenster]

Thanks for the response!

A little bit of an update, the scammer decided to report it as "Unauthorized" and I've went into negative balance. However I can see that the case still says "Under PayPal Review". Does this mean I still have a chance of getting my money back?

Also how do Unauthorized claims work? Like he can just say he didn't do it, and get's his money back? Or is there like an IP check or someway to validate it.

Thanks, 
Riley

[kernowlass]

@Wenster 

An unauthorised transaction means that an account holders Paypal account was hacked and used without their consent by your ?buyer.
If Paypal check IP addresses etc and find in favour of the account holder then of course they are reimbursed.

BUT if they think the so called buyers account was NOT hacked then it would be closed in your favour.

I hope you are not selling and using the friends / family option because if so that would be the reason he could ONLY open unauthorised.

If you are then you risk your account being permanently limited so take care.

[Wenster]

@kernowlass 
Thanks for the response.

I don't really know how he sent it. I think that option is view able on the buyers side?

Anyways, I'm wondering if he is NOT successful with the chargeback, and I get all my money back, is he able to open it again? Possibly through his bank?

Kind regards, 

Riley

[kernowlass · Accepted solution]

@Wenster 

You would know if he paid f/f as you would not have been charged a fee and would not have had the buyers address to send any items to.

If he failed on paypal then its highly unlikely his bank would help him, normally chargebacks are only via credit cards.