Paypal Chargebacks

[FabioFernaandd]

Hello...

I wanna know how the refund and chargebacks works.

First off, which types of payments can be charged back?

Personal payments or goods payment? Which one can be chargeback and whats the difference?

Second, if I send a payment, and the user sends that money to his bank, and if I ask for a chargeback, will the money be withdrawn from his bank? What if he closes his paypal account after he receives on the bank?

Do I get my money after I ask for a chargeback, even if he sends to bank?

[kernowlass]

You are talking about x2 different things.

1. Paypal gives buyer and seller protection and you can raise a dispute on paypal and escalate it to a claim.

You can do this for non receipt of item or item received but not as described and must open the dispute within 45 days of paying.

2. A chargeback is done by a buyers c.c. company and can be done up to 6 months after the person pays. Paypal do not decide the outcome of that it is done by the c.c. company.

Back to paypal disputes, if you pay using the gift / family/ friends option then you can't file a dispute as that is a "gift" payment and you can't ask for gifts back again.

If a buyers uses the send money > goods option then they can open a dispute for the above criteria.

If you pay for an item and win a dispute but the seller refuses to refund you or has transfered your payment to his bank account then paypal will refund you under their buyer protection scheme but you need to read up on buyer protection to make sure you know how to pay so you qualify for that protection.

[FabioFernaandd]

Thanks a lot for the answer. Just a last question, if I, receive something by good and I sent it to my bank, and the person who sent the money does a chargeback, will I get my money out of my bank account by paypal? or they can only chargeback if the money is still in paypal?

[kernowlass]

Paypal cannot dip into your funding source eg bank account or card without your authorisation. They can only do so when you authorise them to do so eg when you authorise them to take from your funding source when you pay for an item.

[DCDetector]

That's BS. You can get ripped off and not a thing you can do about it.

I bought a 14k necklace from a seller on eBay and paid using Paypal. His shipping address was in California so it took a week to get there then a week later I recieve an email from Paypal saying a claim was filed and $500 was held on my bank account. The buyer hadn't even recieved the necklace yet but filed a claim that the neckless might be fake. But it was going to take another two weeks to get to him who was actually in China to see if it was real or not.

Apprently there is a convienyent place in California that allows people from different countries to buy from people who list items they will only ship to the US. This place gives them a US shipping address then ships it out of the country. This guy lost his option to file a claim when he had it shipped from California to China. How does anyone know what was shipped? I called eBay as soon as the guy filed the claim, which I knew was bogus, to let them know that my 30 day option to file aginst the person I bought from would be up be the time the guy in China made the decision to keep it or not. I told them I had just bought the necklace froma seller on eBay 2 weeks ago and if this guy files a claim that the neckless was fake then I would want to file aginst the guy I bought it from so I'm calling now to let you know my time would be up before I could file.

Well imagine my surprise to find out the guy in China said it was fake. He got his $500 back I called and was told my 30 days was up no exceptions. I was plain and simply ripped off and no onhe gave a crap because everyone got their money but me.

[Rowanlyle]

If someone files a claim, PayPal either freezes the funds in your PayPal account or will automatically draw out the money from your bank account without even asking. Don't use PayPal for expensive items, you can get burnt and buyers can end up with your goods and your money!

[longton1]

The silence is deafening on all aspects of this claim and chargeback issue. I just do not trust the situation until someone from paypal comes on here and clarifies the situation. 

[kernowlass]

@longton1

You may be waiting a while as the paypal moderators rarely post on here as this is a user to user community help forum.

When they do post it is general advice, they don't deal with specific account issues they will tell you to contact them via customer services.

[longton1]

In my experience they rarely reply, I have 3 outstanding issues with them unanswered.

[longton1]

I am starting a legitimate gemstone business, but I am really wary of using Paypal. Despite the fact they claim the customer must return the goods, it seems to me they just believe anything the customer says and either freeze or refund the money with few questions asked. By the very nature of things, a gemstone is to some extent open to differences of opinion about its attributes, qualities etc. They will have a date stamped picyture of the actual stone online and can request an online demo if they wish. A stone with a deep hue, strong lustre etc as assessed by me, a certified gemmologist in accordance with the GIA, a customer may neveretheless dispute as he basically just no longer wants the goods and they were really viewing the goods on approval and do not really want it. On the assumption I delivered the correct goods to the correct place and it is signed for, I intend charging a % as a restocking fee AFTER RECEIPT of the returned goods, plus any duties or charges back to me if it is from an overseas customer. It will need to be insured for return as I insure the outward shipment.

This is of no comfort however if Paypal ignore my policy and just dip into my funds for goods I have not even received back, and may not even be the same goods returned, a common consumer scam, and there are plenty of consumers scamming and not just sellers.

Does anyone here have any experience of disputes on the subjective quality of items and Paypal's responses to claims and in turn to the terms and conditions I set? I presume there are Paypal moderators reading posts so can you offer me any comfort and assurance or do I just write Paypal off as too much trouble to be worth it? I just hear too many horror stories from other vendors.