Unfair PayPal Chargeback
Posted by ppc on January 1, 2010 under Chargebacks/Disputes, Poor Customer Service | 
Complaint:
Paypal is horrific. Somebody called and gave my company a credit card for merchandise. We ran the credit card through the paypal system and it was accepted. We then sent out the merchandise. A few weeks later a person called and said he had the charge on his card, but did not give the order . We told him we can only refund with the return of merchandise. We suggested he call his credit card company and report a stolen card. Most credit card companies will not charge you for purchases on stolen cards. We heard form Paypal that his credit card company wanted the money back from us. We explained that the paypal system said it was a good card and we sent out the merchandise. Later paypal took the money out of our account and gave it back to the credit card company. We are now out the merchandise and have no money from it. Paypal said that is the way it works sometimes. So the person who lost the card is out nothing, the credit card company is out nothing, paypal is out nothing and we took the whole hit. It is apparent that paypal does not go to bat for it’s customers. If it did the loser in this transaction would be the credit card company. Instead they all decided the little business should take the hit. Paypal is a terrible company.
Submitted by Jon Barris