41 replies to this topic

[sh1977]

Hello Everyone.

I'm posting this in hope someone maybe able to help me out with Paypal change back for merchants.

The back ground.

Ok I had purchase on my web site for just over $1100 for two items.
The customer was using Paypal to pay. The $1100 was put into my Paypal account.

Thinking all is ok i send off the items to the customer.

A few days later after i'd sent the items to the customer. i get an email saying a charge back has be initiated on that transaction. The $1100 was removed from my account.

I then had to send the details of the courier company i used to send the items. Including consignment number and signature of the person that received the good.

Now paypal are saying the transaction was fraudulent and i've lost my money. Paypal told me to call the police and chase this up my self, it's now my responsibility.

My question to everyone is, how can it be my responsibility. Isn't the whole idea about Paypal that we are protected from fraud.
I still don't understand how someone could transfer $1100 into my Paypal account without going through the Paypal authorisation process.

Has anyone out there had a similar problem, if so how did you go with getting back your money. Was there someone in Australia you called that was interested in helping you. Anything.

My warning to everyone, is don't use Paypal. If something goes wrong they don't care.

Someone told me once it's not the service you offer when selling something it's the service you supply when the shit hits the fan. That makes you a good company or person.
Paypal don't fit this bill.

Regards,
Scott

[bobg7]

One question, is you paypal account setup so the customer does not need a paypal account to make a purchase?

[sh1977]

Hi Thanks for your reply.

I couldn't figure out if it was or not.

I turned the Paypal payment module on and tested but i couldn't tell.

Is there is other way of finding out.


Regards
Scott

[bobg7]

You need to login to your paypal account and there is a link to see how it's setup.

[Silent Bob]

In my business, we get chargebacks here or there and there is little you can do if its a fraudulent order. We've only had one chargeback through paypal and they actually fought it for us and got it overturned - I was really quite impressed. We've had lots of chargebacks with our bank, and with worldpay before that and they really didnt give a damn or make any effort to fight them for us, but paypal did.

Chargebacks are just harsh in general. Unfortunately the burden of responsibility falls on the retailer, not the customer - which when you think about it is more fair than the other way around. Imagine if someone used your card to purcase $1100 of products online and then you were expected to pay for it. Generally businesses are more well equiped to deal with the loss than individuals plus presumably your actual loss (minus your profit margin) is less than the full $1100.

We got hit by a series of chargebacks from the same group of people recently to the tune of £1500 ($2800). There was nothing we could do about it. Its a sad fact of online retail.

[enigma1]

James, don't you guys confirm with the customer when an order is placed? Perhaps there is some overhead to it, but worth doing before processing the order and arrange shipment. Calling the client over the phone and verifying that the delivery state matches with the phone number as well as the ordered items.

[aHfUi]

I also meet the same charges
Paypal chargesback after 3 month.
We had delivery all to the customer with the address of paypal transaction detail.
But what we get ?
Paypal take out the amount and return to buyer !!!!
I lost payment and products !!!

[draxion]

yep... happens to many of us. It sucks but that's the risk you take when using paypal.

Google "no paypal" and take a look at the first hit ... happens to alot of folks out there.

[Bradd_N]

bobg7, on Sep 27 2005, 11:15 AM, said:

You need to login to your paypal account and there is a link to see how it's setup.

Where is a link?

[mandar-seo]

Have you ever tried Google Checkout. I don't have much idea of it. But you can always surf to find more about it.

With regards,
Mandar Thosar

[boxtel]

aHfUi, on Jul 30 2006, 12:29 PM, said:

I also meet the same charges
Paypal chargesback after 3 month.
We had delivery all to the customer with the address of paypal transaction detail.
But what we get ?
Paypal take out the amount and return to buyer !!!!
I lost payment and products !!!

well, transfer the payment out of paypal before you ship.

[dynamoeffects]

boxtel, on Oct 16 2006, 04:02 PM, said:

well, transfer the payment out of paypal before you ship.

Won't they just pull it out of your bank account anyway? I thought that's apart of their TOS.

[BigWilly]

dynamoeffects, on Nov 1 2006, 10:43 PM, said:

Won't they just pull it out of your bank account anyway? I thought that's apart of their TOS.

Yes, they do pull it out of your bank account. To be safe, transfer the paypal-funds to your bank-account and then to another bank-account. This way, paypal can do whatever they want, they won't get your money!

[BigWilly]

Bradd_N, on Aug 31 2006, 04:17 PM, said:

Where is a link?

Log in to your paypal account --> click PROFILE --> click PAYMENT RECEIVING PREFERENCES (under Selling Preferences)

There you can at least block payments from US-Users that have not confirmed their address.

[dynamoeffects]

BigWilly, on Nov 3 2006, 05:06 AM, said:

Yes, they do pull it out of your bank account. To be safe, transfer the paypal-funds to your bank-account and then to another bank-account. This way, paypal can do whatever they want, they won't get your money!

Not sure how your bank works, but if my account is debited for more money than what's there, they still get their money and I get charged overdraft fees. If somehow PayPal can't withdraw that money, they'll freeze your paypal account, which will really put a stop to business.

I'd say the best strategy is to keep your paypal balance at $0 by withdrawing it to your bank account, and if they do a charge back, they'll only take that bit of money. Chargebacks are a fact of life in online retail and there's no real way to do it. The biggest fear is that they freeze your account while you have a balance, but since they can't control your bank account, you can keep your losses minimized.

[BigWilly]

dynamoeffects, on Nov 3 2006, 08:40 AM, said:

Not sure how your bank works, but if my account is debited for more money than what's there, they still get their money and I get charged overdraft fees. If somehow PayPal can't withdraw that money, they'll freeze your paypal account, which will really put a stop to business.

I'd say the best strategy is to keep your paypal balance at $0 by withdrawing it to your bank account, and if they do a charge back, they'll only take that bit of money. Chargebacks are a fact of life in online retail and there's no real way to do it. The biggest fear is that they freeze your account while you have a balance, but since they can't control your bank account, you can keep your losses minimized.

Paypal takes every cent they can so I'd rather have them to freeze my paypal account than to take a lot of money! Most consumers don't trust paypal anyway. I had customers sending money by cheque and had to pay $5.00 extra (cheque came from US to Canada) just because they don't want to use paypal.

[boxtel]

BigWilly, on Nov 3 2006, 12:06 PM, said:

Yes, they do pull it out of your bank account. To be safe, transfer the paypal-funds to your bank-account and then to another bank-account. This way, paypal can do whatever they want, they won't get your money!

No idea how your western bank laws work but there is no way paypal or any other pal can withdraw money from my bank accounts without my explicit approval for every single withdrawl.

They can freeze your paypal account but they do that whenever the wind changes, it is in paypal's business interest to keep your money in their accounts as long as possible so freezing for them is not a dispute facility but a normal business profit practice and resolution should take as long as possible.

So I use paypal only because some western customers wanted me to but I only ship after the payment is out of paypal. If paypal freezes my account for whatever reason, that will be the end of me using paypal.

[Grimmyfrombar]

There must be an alternative to paypal. Anybody Know of one?

[BigWilly]

Grimmyfrombar, on Nov 7 2006, 10:50 AM, said:

There must be an alternative to paypal. Anybody Know of one?

Google Checkout... Can't be used in any other country than the US as of today... I'm pretty sure Google Checkout will be the "new paypal"

[trollsoft]

BTW, Google is 100% free until 2007.
And I just installed the Google checkout module, works great.



-john

PS I hate paypal with a firey passion that consumes my soul.