Chargeback with financial institution

[Silentium_]

Good evening,

I was sent money through friends and family from a person that owed me money.

However, I got a dispute a few weeks later with paypal telling me this :

"Your buyer has filed a chargeback with their financial institution reporting that they haven’t received the item. Until we resolve this issue with the buyer’s financial institution, we’ve placed a hold on the transaction amount. "

The thing is, that I never sent him anything obviously since the money was sent through friends and family. I have no idea how he managed to claim the money back as well, but now my balance is negative 1.1K

I then seeked help from customer support, and they told me they'd get an expert to work on the case. However, I somehow ended up losing the case ?? which I don't understand why. What if the buyer does this again ? I'll end up losing my entire savings as I have to pay back paypal eventually.

Any help would be appreciated because I'm really desperate right now.

[kernowlass]

@Silentium_ 

Its against Paypal rules to accept a family / friends payment for selling goods and you risk your Paypal account being limited if you do so.

A buyer would not be able to open a Paypal dispute for non-receipt of item or item not as described as they would have no Paypal buyer protection.

However they can still open a dispute for an unauthorised transaction OR do a chargeback (via their card issuer) and you may well lose as you would have no Paypal seller protection. If that is the case the card issuer makes all decisions and all paypal can do is pass on anything information from you on your behalf. However as it was friends/family payment then you had no seller protection.

[Silentium_]

Thank you for your answer, but there's a part I forgot to mention :

I didn't sell him anything ! This transaction was strictly personal and had nothing to do with selling him an item or object.

It just turns out that he somehow found a way to get a chargeback so now I'm stuck

[kernowlass]

@Silentium_ 

In your first post you said this >>> 

What if the buyer does this again ? 

So if it was a buyer then you were selling something, other than that it would be a friends/family gift payment from a close mate or family member.

Either way even if it was the latter then can still do a chargeback via their credit card if they funded their paypal payment that way (just not a paypal dispute).