PayPal Charge Back
Discussion
Hello All,
I've just received a charge back against me through PayPal. The dispute is from something I've sold over 6 months ago.
This charge back and original PayPal transaction has no details other than the amount (£100). I'm 90% sure what this is for and I'm 100% it was received (I ALWAYS confirm delivery / satisfaction with the buyer). I've been selling off my car spares that I've collected over the past decade - I've had countless transactions in this period so pinpointing this one is unlikely.
I no longer have any evidence, the original payment was a gift through PayPal and has no details; the buyer details were all confirmed over PM's from another forum (Sods law I cleared all of my inbox a month or so back). The Royal Mail receipt is long gone (I probably have it in a pile of umpteen receipts, but with no address to tie it with, it'll be useless anyway). Literally, all I have is a name and e-mail from the PayPal transaction. He's not responding to e-mails, surprise surprise.
Are my thoughts correct here, the likelihood of me winning this dispute with no evidence is slim to none? Am I going to have to take this on the chin and learn a lesson, or is there anything I can do?
How can I prevent this in the future?
Any advise is greatly appreciated.
I've just received a charge back against me through PayPal. The dispute is from something I've sold over 6 months ago.
This charge back and original PayPal transaction has no details other than the amount (£100). I'm 90% sure what this is for and I'm 100% it was received (I ALWAYS confirm delivery / satisfaction with the buyer). I've been selling off my car spares that I've collected over the past decade - I've had countless transactions in this period so pinpointing this one is unlikely.
I no longer have any evidence, the original payment was a gift through PayPal and has no details; the buyer details were all confirmed over PM's from another forum (Sods law I cleared all of my inbox a month or so back). The Royal Mail receipt is long gone (I probably have it in a pile of umpteen receipts, but with no address to tie it with, it'll be useless anyway). Literally, all I have is a name and e-mail from the PayPal transaction. He's not responding to e-mails, surprise surprise.
Are my thoughts correct here, the likelihood of me winning this dispute with no evidence is slim to none? Am I going to have to take this on the chin and learn a lesson, or is there anything I can do?
How can I prevent this in the future?
Any advise is greatly appreciated.
Well, I've done a bit of research and it has nothing to do with PayPal. Gift or not if the buyer has claimed unauthorised use of his card, for example the card issuer will claim the money back. In short, this has been initiated by his card supplier against PayPal, regardless of the transaction type. PayPal are just on the receiving end and then passing the costs to me.
PayPal will argue my case with the Card Company, but require evidence from me, which I have none.
It's a common scam apparently. There are loads of examples all over the net where even with evidence PayPal lost the cases.
The scam is:
- The seller asks for the funds to be paid as GIFT, thinking this offers protection for the seller.
- The buyer sends a PayPal gift using a credit card.
- The recipient of the payment (seller) receives the GIFT payment and the full amount shows up in their account as a gift.
- Everything looks okay so the seller ships the item.
- Hours, Days, Weeks (or in my case Months) later, the buyer will issue a chargeback with their credit card company by claiming that their credit card was stolen, used without consent etc. The lies are easy.
- Credit card company will issue a chargeback, and in response, PayPal will hold the associated funds from the sellers account.
- Because this was a GIFT transaction, as far as PayPal is concerned there was no sale or exchange of goods; so they aren't really bothered about helping. Evidence of shipment means nothing here when there was no official exchange of goods.
- Seller's funds are held and it's reversed to buyer.
PayPal will argue my case with the Card Company, but require evidence from me, which I have none.
It's a common scam apparently. There are loads of examples all over the net where even with evidence PayPal lost the cases.
The scam is:
- The seller asks for the funds to be paid as GIFT, thinking this offers protection for the seller.
- The buyer sends a PayPal gift using a credit card.
- The recipient of the payment (seller) receives the GIFT payment and the full amount shows up in their account as a gift.
- Everything looks okay so the seller ships the item.
- Hours, Days, Weeks (or in my case Months) later, the buyer will issue a chargeback with their credit card company by claiming that their credit card was stolen, used without consent etc. The lies are easy.
- Credit card company will issue a chargeback, and in response, PayPal will hold the associated funds from the sellers account.
- Because this was a GIFT transaction, as far as PayPal is concerned there was no sale or exchange of goods; so they aren't really bothered about helping. Evidence of shipment means nothing here when there was no official exchange of goods.
- Seller's funds are held and it's reversed to buyer.
Edited by EnthusiastOwned on Monday 9th February 12:22
Sadly this is the case, using paypal gift is never a good idea when selling an item and definitely not a safe way to avoid paying paypal fees (as the seller). If paying the paypal fee is an issue for you when selling then you can charge the buyer [price] + [fee] so you end up with [price] into your account once paypal has taken their cut.
Phateuk said:
Sadly this is the case, using paypal gift is never a good idea when selling an item and definitely not a safe way to avoid paying paypal fees (as the seller). If paying the paypal fee is an issue for you when selling then you can charge the buyer [price] + [fee] so you end up with [price] into your account once paypal has taken their cut.
Yeah, I think this is a lesson learnt, unfortunately. 
No more gift payments and I'm going to have to documents all conversations and confirmations, should this happen again. Oh well, C'est la vie.
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