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Chargeback solution or stupidity


ken.kita

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Hi,

I was recently hit by a chargeback from a person. My paypal account is minus ?190 while paypal investigate. I am pretty sure I will not win the chargeback dispute despite being in the right (the chinese man never sent back the phone for a refund) and was wondering what the consequences of closing down my bank account before Paypal decides to give my money to the chinese man. They wont be able to take my money but what can they do? I am in the UK

 

Thanks

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I was recently hit by a chargeback from a person. My paypal account is minus ?190 while paypal investigate. I am pretty sure I will not win the chargeback dispute despite being in the right (the chinese man never sent back the phone for a refund) and was wondering what the consequences of closing down my bank account before Paypal decides to give my money to the chinese man. They wont be able to take my money but what can they do? I am in the UK

 

Unfortuneatly there isnt much you can do with a chargeback.

 

If you have all the right paperwork.. IE a recorded delivery where the customer had to sign for the goods, a copy of the ip address from where the order was placed etc etc then you should win the chargeback if you are in the right.

 

Even if you close your account the money will be frozen so you will loose out either way :(

 

If you loose and you are 100% sure that you are in the right then there is a complaints proceedure throught the FSA which regulate paypal in the UK like any other bank or credit card provider

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  • 5 months later...
Unfortuneatly there isnt much you can do with a chargeback.

 

If you have all the right paperwork.. IE a recorded delivery where the customer had to sign for the goods, a copy of the ip address from where the order was placed etc etc then you should win the chargeback if you are in the right.

 

Even if you close your account the money will be frozen so you will loose out either way :(

 

If you loose and you are 100% sure that you are in the right then there is a complaints proceedure throught the FSA which regulate paypal in the UK like any other bank or credit card provider

 

 

Dude, that doesn't even answer the question the guy asked...

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Looks like it answered the question and gave some advice, to me.

Wendy James

 

Creativity is allowing yourself to make mistakes. Art is knowing which ones to keep.

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The question seems not to be about the paypal account per see, its already in minus ?190 .

 

For verified vendors paypal has the possibilety to withraw funds directly from their credit cards and their validated bank accounts.

 

So the question seems to be if he/she can avoid having to pay paypal the ?190 by closing the "real" bank account which is connected with the paypal account.

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So the question seems to be if he/she can avoid having to pay paypal the ?190 by closing the "real" bank account which is connected with the paypal account.

 

That was what I meant by "Even if you close your account the money will be frozen so you will loose out either way"

 

AFAIK that amount would be frozen in the bank account by paypal as a dispute with his bank so the money is already locked, so closing the bank account would not help.

 

I personally have never lost a chargeback because I follow a paranoid business practice which ensures that the goods are trackable every step of the way, and I ensure I store ip addresses against orders and insist that goods are returned trackable.

 

I also follow the following checklist on high value orders.

 

Email Address

Is there a link between the consumer's name and email address?

 

Location of customer

Do the address, postcode and telephone number given by the cardholder relate to each other?

Is the address given by the cardholder in the UK?

Is the address given by the cardholder outside the UK?

Has this customer ordered previously with a different address?

 

Where is the Customer?

Is the address given by the cardholder located within the area of your usual customer base area?

Would you expect an order from this location?

Does the time of the purchase correspond to the customer's local time?

 

Valid Card Number

Does the card number pass the Mod10 check?

Does the card have a valid expiry date?

Is there an Issue Number or Start date (Switch or Solo cards)?

 

Order Details

Is the value of the order unusual?

Are the number of products ordered unusual?

Has the customer purchased the same or similar number of goods on a previous occasion?

 

Chargebacks

Has this customer's email address or card number been associated with a previous chargeback?

 

Delivery Address

Is the delivery address different to the address given by the cardholder?

Is the delivery address outside the UK?

Does the purchase incur post and packing charges in excess of its value?

Has the customer changed the delivery address from the one originally quoted?

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  • 4 weeks later...

From my expirence with paypal and a charge back..they dont care...u can send them all the information you like, they'll beleive the other guy, wont even care what u said. If you dont beleive me, search google...theres a 100 sites that talk about how paypal is a scam..

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Valid Card Number

Does the card number pass the Mod10 check?

Does the card have a valid expiry date?

Is there an Issue Number or Start date (Switch or Solo cards)?

 

Sorry to hijack the thread, but jusst wondering what you mean by 'Mod10 Check'?

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I personally have never lost a chargeback because I follow a paranoid business practice which ensures that the goods are trackable every step of the way, and I ensure I store ip addresses against orders and insist that goods are returned trackable.

 

That is good but paypal can still screw you. Check out this case I have with paypal:

 

A guy from Brazil places an order on my site. My site only lists USA and Canada as options for countries. He creates an account for USA and in the comments writes is Brazil address. I refund the payment back to his paypal account within 2 days and cancel his order. A few weeks later, paypal holds the funds from my account due to a credit card chargeback (either this guy did a chargeback or he was using a stolen credit card). Even though I had promptly issued a full refund for any money I received, paypal still held the amount. So I received $150, which I refunded, and now paypal holds the $150 again...so I am out $150 until paypal investigates, which can take up to 75 days as they attempt to 'recover the funds from his bank.' From what it seems, if they can't recover the $150, I won't get it either. What kind of BS is that. If a merchant refunds the customer, then there shouldn't be any more burden on the merchant.

 

As far as paypal is concerned, there is no seller protection policy.

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safoo that sounds a little off. i had a similar experience with a buyer from thailand a few months ago

 

it took about a week, but paypal never deducted any money at ALL throughout the complaint process. (though they usually do, when it's a complaint or chargeback)

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That is good but paypal can still screw you. Check out this case I have with paypal:

 

A guy from Brazil places an order on my site. My site only lists USA and Canada as options for countries. He creates an account for USA and in the comments writes is Brazil address. I refund the payment back to his paypal account within 2 days and cancel his order. A few weeks later, paypal holds the funds from my account due to a credit card chargeback (either this guy did a chargeback or he was using a stolen credit card). Even though I had promptly issued a full refund for any money I received, paypal still held the amount. So I received $150, which I refunded, and now paypal holds the $150 again...so I am out $150 until paypal investigates, which can take up to 75 days as they attempt to 'recover the funds from his bank.' From what it seems, if they can't recover the $150, I won't get it either. What kind of BS is that. If a merchant refunds the customer, then there shouldn't be any more burden on the merchant.

 

As far as paypal is concerned, there is no seller protection policy.

 

Not sure I understand this. So how he placed an order for Brazil if you only allow certain countries to be processed through your store. If you have a filter in place, the delivery address would be US or CA. It doesn't matter what they say in the order comments, because you have the delivery address details, don't you? It is where you should deliver the goods.

 

Sorry to hijack the thread, but jusst wondering what you mean by 'Mod10 Check'?

Its a checksum method published for cc. osc handles it.

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