Buyer gets to keep the item and the $$? FRAUD

[forzamotorworks]

Hi all, 

I run an e-com business that offers high end automotive upgrades. 

I sold a customer an item through PayPal for $3,495, which was shipped, received and installed. 

The customer filed a chargeback with his CC claiming 'not as advertised'. The customer has not communicated ANY issues, problems or dislikes and has been totally unresponsive since. 

I filed a lengthy and detailed appeal and have provided several updates with correspondence stating that I have been trying to contact the customer to resolve with no response whatsoever. I have offered return, replacement etc. 

I received a notification that the credit card company ruled in the Buyer's favor. WTF? 

The customer now has the product and the money, with no explanation as to what the issue is. So customers can simply just file a chargeback, keep the product and money with no explanation? 

This is a clear case of fraud and theft. PayPal just washes their hands of it saying it's out of their control and will not disclose any further information. 

What am I to do in this situation? Extremely disappointed in PayPal. 

Thank you

Alec 

[kernowlass]

@forzamotorworks 

The chargeback process is external to the PayPal system. The buyer's credit card issuer grants its members specific consumer protection which PayPal has no authority to replace.

If a PayPal user initiates a chargeback with their credit card company Paypal have no way of stopping the claim. 

If the card issuer grants the case in the buyer's favour, Paypal will review the transaction on your PayPal account to see if it is eligible for Seller Protection. Review this link for information on the Seller Protection Policy - https://www.paypal.com/smarthelp/article/what-is-the-paypal-seller-protection-policy-and-what-items-.... 

[forzamotorworks]

Hi,

Yes, thanks. I understand that.

There's no seller protection via PayPal outside of unauthorized card use. 

It's not right that this is closed in the Buyer's favor, I have no recourse and PayPal will not disclose any further info - card company, case number, dispute info etc. 

What's to stop everyone from ordering items and then just filing a dispute to keep them along with getting their money back? 

As it stands, I'm out the product and the $3,495 now with no contact or communication from the buyer. I'm here trying to reach an amicable resolution and the door is shut in my face. How does that make sense? 

It sounds like PayPal is not a good option for merchants. 

I will have to take this up with local authorities and an attorney. 

[kernowlass]

@forzamotorworks 

Its no different if you sell something direct and accept payment with a credit card and not paypal, buyer can still do a chargeback.

Do you have a small claims court or similar in your country you can file with against the buyer?

[forzamotorworks]

I disagree - if that were the case, I'd be able to discuss/appeal with the CC company. 

PayPal stonewalls you with a scripted response that they passed along the appeal and can not assist any further, nor disclose any info.

I have no idea if they passed along the information in a timely manner, what transpired, what the customer told them etc... really anything at all other than sorry, you lost, we can not help you any further and now you're out the product/$$.

How do I know that the customer didn't lie about what transpired? Or said they sent it back? 

This is a clear case of fraud/theft - it should have been an open and shut case.  

Doesn't sound like PayPal is fighting at all on our behalf.   

My local authorities advised to file a report, along with one through FBI internet crimes complaint center.

[kernowlass]

@forzamotorworks 

Why would paypal be fighting on your behalf when both buyer AND seller are paypals customers.

Paypal gives some buyer and some seller protection and then its up to all of us to risk assess our transactions.

Paypal are the middlemen and can't give 100% protection to both parties, so there is always someone on here stating a claim was unfair as one party is always going to lose.