PPC Submitter : Monday, July 25, 2011, 18:26

Chargeback and “Settlement Fee” For Buyer Misunderstanding

I sold a car on EBay Motors this past April. I explicitly stated in the sale page for the car that a $50.00 deposit was required within 48 hours of the end of the auction (the $50 would then be applied to the total purchase price). The buyer promptly paid the $50 after winning the auction and the remainder of the sale went smoothly.

I heard nothing further about the case until this past Tuesday, when I got an e-mail that the buyer’s credit card company was reversing the $50 charge. I called the buyer and he claimed he’d reversed the charge because he misunderstood something on his credit card bill and agreed to straighten it out with his card company, who I assume would then re-credit my PayPal account and call it a day as if nothing happened.

I disputed the charge with PayPal, explaining exactly what happened and that the chargeback happened because of a misunderstanding on the buyer’s part. They went ahead and gave the credit card company the $50 AND charged me an additional $20 “settlement fee” even though the dispute is still “open”. Apparently, I’m still responsible for the $20 “settlement fee” even after the chargeback gets reversed. So, I’m paying a penalty for doing absolutely nothing and following the rules.

Submitted By:: Dan

Location: Stamford, CT

Buyer chargeback after swapping parts and returning itemA customer purchased a satellite receiver, only to return it three weeks after buying it. The security seal on the receiver was broken, and the electronic card reader was swapped with a different one. The buyer...

Bogus PayPal ChargebackI sold an item on May 28 and the buyer paid via’ PayPal on May 29th. PayPal notified me they had received the funds, and item shipped on may 29th. The item was received by the buyers on June...