admin : Tuesday, September 21, 2010, 18:29

Bogus PayPal Chargeback

I 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 3rd and they left me positive feedback for the transaction. Fast foward 3 months-

The buyer filed an “unauthorized use” chargeback, and the money in my PayPal account for the item was frozen. I responded the next day with the information stated above. The buyer was not disputing with an “item not received” complaint, but with “unauthorized use”. PayPal has a relationship with the buyer and you would think they would be able to tell if their was actually any “unauthorized use” happening.

So, ten days go by and PayPal hits me with a $20 chargeback fee! I am told the buyers credit card company charges PayPal this fee, and it is passed on to me.

So after all of this, I found out that the “unauthorized use” chargeback was caused by someone in the buyers household who did not have permission to use the credit card! How is this my fault? Why should I have to pay a $20 chargeback fee, virtually give someone my property for FREE and pay to ship it to them?

Submitted By Mark Burlingame

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