A small story from a user/victim of PayPal selling a service only to have it charge backed against him some weeks later and PayPal tell him suddenly he owes them money… what is the point of there so called “seller protection” its not worth the pixels its printed on…
Help! I lost a chargeback claim in Paypal.
I sold a service using Paypal. After a few back and forth emails with the buyer, we reached an agreement and the buyer sent payment via Paypal. I figured at this point since the buyer sent payment first and the money was physically in my hands all would be good. I completed my end of the deal, concluded the transaction and all was good UNTIL the buyer filed a charge-back claiming it was an unauthorized transaction a few weeks later. I argued that the buyer willfully and purposely engaged in misconduct and fraud – and of course Paypal sided with the buyer.
Reading up, I know understand that this is essentially a chargeback scam (the buyer buys something then uses his/her credit company to reclaim the funds).
No doubt about it, alot of this is on me for not doing my research. I also understand that according to Paypal policy, I’m essentially not covered by anything and basically at a loss. I really expected paypal to do the right thing and be reasonable but I now see (and feel firsthand) that they’re just trying to cover their own butts.
Currently, because I lost the chargeback, paypal has thrown my balance into a negative and slapped on a 20 dollar “chargeback processing fee”. This is utterly ridiculous. Looking on the internet, I’ve seen alot of similar cases and many of them here on reddit.
So now essentially i owe Paypal money, wrongfully I’d like to add, but now I owe them money nonetheless. I know my chances of winning this are somewhat slim but I’d like to make paypal experience what I’m feeling right now. So I’d like to ask, especially to those with some firsthand experience:
1) How do I fight this?
2) Where do I file complaints (paypal departments and other relevant agencies and advocacy groups)? I reside in the state of CA.
3) What are the rules, regulations and legal guidelines regarding negative Paypal balances in situations like these. And
4) I also understand that Paypal isn’t really a bank so many banking guidelines don’t apply to them. I’ve read online that Paypal is the merchant or the record of the transaction when somebody uses Paypal to conduct a financial transaction. Thus (accordingly to what I read) it’s actually Paypal’s responsibility to process/verify these transactions and their responsibility to minimize and prevent fraud. Thus Paypal shouldn’t really be able to charge me in this kind of situation. Can somebody clarify this and explain how I might be able to use this to bolster my case and help my situation?
Thanks alot. I’m not sure if this thread will catch on or be completely ignored but I’ve setup a quick email just for this thread in case people want to reach out, send me information that they wouldn’t otherwise be able to post here or anything like that
The email address is firstname.lastname@example.org
I do apologize for this kind of “sob” thread but I’m genuinely trying to get as much help & information as I can to see what my options are and how I can respond to this situation. I appreciate the help.