Can this be right? Paypal Charges Me For Being Ripped Off?

[Jon_King]

Can this be correct, a fellow pays for my product, recieves it, then claims he didn't.

And for this, PayPal then gives him his money back, and THEN takes $10 for themselves on top of my being ripped off?

So, I lose my product, my money for that product and then $10 more. Is this right?

[pp_rb]

It sounds as though you've received a chargeback, and got a chargeback fee. That means that the customer contacted their credit card company directly to reverse the charge, and PayPal received it as a chargeback. If you have any evidence that the customer did receive the item, you should respond to the chargeback via the Resolution Center in your PayPal account and provide that information so PayPal can dispute it with the credit card issuer.

If the item was eligible for the Seller Protection Policy, and you shipped to the address provided using a method with online tracking and met any other conditions of the SPP (such as requiring a signature in the case of high purchase amounts), you should just need to provide the tracking info to have this chargeback reversed on PayPal's side. PayPal will then dispute it with the credit card company, but will let you keep the funds even if they can't win that dispute.

[Corey Bryant]

This happens a lot - more often than you know.

It is always a good thing to require a signature - proof of deleivery to help with this type of chargeback (Reason Code 30 - Services not Provided or Merchandise not Received).

If you are shipping merchandise without requesting proof of delivery, consider the costs and benefits of doing so compared to the value of the merchandise you ship. Proof of delivery will usually allow you to return the chargeback if the customer claims the merchandise was not received.

-Corey

[ispy]

Yes, I'm afraid it is right.

[Wlauzon]

This happens a lot - more often than you know.

I would hardly say a lot, at least not for us. 3,420 PP transactions, two disputes, both of which we won.

I only wish our VISA and other CC's were near that good a ratio.

[Corey Bryant]

It does depends on your customers, sales, TOS, etc. We have one merchant who does about $70,000 a month and he had his first chargeback after twelve months.

(I was trying to make the orginal poster feel better basically and let him know he was not alone.)

-Corey

[oldpro]

Consider this a cost of doing business with paypal. Even with proof of delivery (signature confirmation)...we have had disputed chargebacks for non-delivery not judged in our favor with paypal.

[Jon_King]

I have an email from the offender as an acknowlegement of receipt! It's his own words: "I have the product."

It's not much money, and I know bad debt is a part of business, I'm just blowing off some steam.

I'm convinced that people now know they can say practically anything to PayPal and get a refund.

[Marcia]

Send the email off to PayPal with full headers.

[LifeinAsia]

Forget about getting any money back from PayPal at this point- it's time to seek payment through other means.

Mail (certified snail mail, not e-mail) the customer a revised bill for the full amount plus the chargeback fee. State the bill is payable in full within 30 days of the date of the bill, otherwise you will begin charging interest at 1.5% per month on the unpaid balance. If the balance is not paid in full within 180 days, you will turn the bill over to a collection agency. At that point, failure to pay the bill in full will result in a negative mark on his credit report.

[tootalldave]

A chargeback is the risk an online retailer takes that would compare to the actions of a shoplifter.

Just make sure you add the cost of chargebacks into your cost of doing business and do the best you can to keep your chargeback ratio low as a store keeps shoplifting as low as possible.

The $10 fee PayPal charged you is the fee that they were charged by VISA/MASTERCARD......