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Paypal Question


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Ok so here is the question to you all so brilliant people, that was a good Remark.

 

As we know about Charge backs and I do beleive that paypal charges only 15.00 if i read it correctly.

 

The question is if you send a package out and ask for signature and either the customer refuse's or someone else signed it and the customer calls the credit card company up and requests a chargeback, but he either sends the products back or he does not.

 

Do we owe Paypal the Charge back and the amount for the products, I have never had to deal with charge backs as I don't accept credit card at this moment, but would or maybe like to use Paypal to do so.

 

 

If customer sends products back do we have to pay Paypal for the price of the products.

 

This is a very great concern if we have to pay as your products may have to be sent back to your supplier for credit not money.

 

For example: if you sell shoes and customer pays by paypal for the shoes by credit card then decides later to pull a fast one and screw you, they call the credit card company and say i never bought that, and when the shoes got to his door he refuses shipment and the products get shipped back to you, at your exspene mind ya.

 

So when they come back to you you have no money for them as you have to pay either paypal or the credit card company for the products not only that you would lose the percent you have to pay on Paypal transaction fee for using a business account.

 

If you send the product back in this case shoes back to your supplier you only get a Credit Not money, so you Pay Pay Pay and Pay some more.

 

 

Let me know if all the above makes sense and if it is true.

 

Please if anyone has experienced this let me know and how to advoid this and what should we do in this type of a situation.

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Do we owe Paypal the Charge back and the amount for the products,

 

No, you won't owe it, because PayPal will automatically remove the funds from your PayPal account before you even know about it. You can ask for an investigation, but I've never been successfull in overturning a chargeback with paypal, even though I used delivery confirmation.

 

 

 

If customer sends products back do we have to pay Paypal for the price of the products.

 

Yes, if you receive the money through paypay, then you will have to refund the money through paypal, even if that's not how *you* get your refund.

-------------------------------------------------------------------------------------------------------------------------

NOTE: As of Oct 2006, I'm not as active in this forum as I used to be, but I still work with osC quite a bit.

If you have a question about any of my posts here, your best bet is to contact me though either Email or PM in my profile, and I'll be happy to help.

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Ok so here is the question to you all so brilliant people, that was a good Remark.

 

As we know about Charge backs and I do beleive that paypal charges only 15.00 if i read it correctly.

 

The question is if you send a package out and ask for signature and either the customer refuse's or someone else signed it and the customer calls the credit card company up and requests a chargeback, but he either sends the products back or he does not.

 

Do we owe Paypal the Charge back and the amount for the products, I have never had to deal with charge backs as I don't accept credit card at this moment, but would or maybe like to use Paypal to do so.

 

 

If customer sends products back do we have to pay Paypal for the price of the products.

 

This is a very great concern if we have to pay as your products may have to be sent back to your supplier for credit not money.

 

For example: if you sell shoes and customer pays by paypal for the shoes by credit card then decides later to pull a fast one and screw you, they call the credit card company and say i never bought that, and when the shoes got to his door he refuses shipment and the products get shipped back to you, at your exspene mind ya.

 

So when they come back to you you have no money for them as you have to pay either paypal or the credit card company for the products not only that you would lose the percent you have to pay on Paypal transaction fee for using a business account.

 

If you send the product back in this case shoes back to your supplier you only get a Credit Not money, so you Pay Pay Pay and Pay some more.

 

 

Let me know if all the above makes sense and if it is true.

 

Please if anyone has experienced this let me know and how to advoid this and what should we do in this type of a situation.

I think the best way to answer this question is ask them and look in their help files. :-)

 

We might have an idea, but really, you ashould ask them and see what they say.

-Jyn

=======,+'^'+,===============================

Jyn Meyer

`+,.,+' Be Glad the world sucks- if it didn't we would all fall off.

===========================================

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Here is information about PayPal's Seller Protection Policy:

http://www.paypal.com/cgi-bin/webscr?cmd=p...ections-outside

 

PayPal is one of the only payment processors that provides protection for online credit card transactions.

Not really. They only want you to THINK they do. They arent even a real bank so they dont 'technically' have to follow banking rules.

 

http://www.paypalwarning.com

 

*edited to add:

Be warned that Paypal is not a bank and is not FDIC insured. Paypal provides for a new concept ? ?pass-through FDIC insurance coverage?. They do this by pooling funds into checking accounts at about four different banks. This is great in case any of those banks go out of business (highly doubtful), but we are not yet sure of the coverage offered in case of another Paypal "dot com" failure.

 

Many Paypal accounts are frozen for almost anything and without warning until the owner faxes in lengthy and intrusive private information ? several times over. Even then, the account may not be released. The account can usually receive money while it is frozen, but it certainly cannot withdrawal money.

 

Merchants finding themselves on the wrong end of a frozen Paypal account will still have to find some way to pay their obligations and fill orders for the weeks and months while the account is restricted. A domino effect occurs when a merchant?s account is frozen, leaving them with no means to fill orders. Those orders are then disputed by customers, creating more chargebacks and the illusion of fraudulent activity on the part of the merchant.

=======,+'^'+,===============================

Jyn Meyer

`+,.,+' Be Glad the world sucks- if it didn't we would all fall off.

===========================================

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I wouldn't rule PayPal out entirely, especially if you plan to suppliment your store sales with auciton sales on eBay. There are still alot of people out there that like to use PayPal to purchase.

 

I just wouldn't use them as your primary payment processor. You could however, use then in addition to another processor. That would give the people that like to use paypal the opportunity to, and the people that don't like to use paypal an alternative. You'll find that only about 1 in 10 customers will purchase with paypal, meaning that your primary source of income won't be 'frozen' should PayPal decide to so this.

 

I've personally never had my entire paypal account frozen before, but I have had more fraudulent order through paypal than through any other payment method.

-------------------------------------------------------------------------------------------------------------------------

NOTE: As of Oct 2006, I'm not as active in this forum as I used to be, but I still work with osC quite a bit.

If you have a question about any of my posts here, your best bet is to contact me though either Email or PM in my profile, and I'll be happy to help.

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