Paypal Chargeback! Need help!

Silverblade · 15th February 2007, 20:56

On October the 16th I made a online trade for e-game currency. Basically the buyer sent me $2000 and I gave him the item for the game. 4 Months later, February the 14th, I recieve an email from paypal saying that he has initiated a chargeback on the grounds that:
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A chargeback has been issued against this transaction. The buyer indicated to their card issuer that they did not authorise the payment.

Whether or not the buyer’s chargeback is valid is ultimately the card issuer’s decision. If you believe that this chargeback is unwarranted, PayPal’s team of chargeback specialists would like to help you put together a case to submit to the card issuer. This expert assistance is one of the unique benefits of using PayPal.

To begin responding to this chargeback, click the "Resolve" button below.

While this case is being investigated, we have placed a temporary hold on the disputed funds.

Response deadline: Please respond within ten calendar days of the issue date of this chargeback.

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Is this ethical? The transaction was made over 4 months ago, if they didn't authorize the payment wouldn't they have stopped it earlier? Is there any hope of me keeping the money? The money is moved off paypal, into one of my bank accounts. So basically paypal has made me negative $2000. Is paypal able to just take money from my bank account without my permission?

I have no knowledge in this area, and im eager to learn what my rights are, and what chance I have of not losing anything.

Aswell as any ideas on what I can email back in my defence? I have no evidence of the item being sent as it was e-game.

Please help.

Emlyn · 15th February 2007, 22:14

I have to say, PayPal are b*****ds of the highest order. I have to provide evidence of about 100 items I have sold over the past year in order for them to unlock my account. Good luck.

humbleman · 15th February 2007, 22:26

Quote:

Originally Posted by Silverblade

A chargeback has been issued against this transaction. The buyer indicated to their card issuer that they did not authorise the payment.

Please help.

The dispute is between Paypal and the buyer, since he is not saying he didnt receive the service/goods, simply he did not authorise the debit. I dont think you have a case to answer.

lookinforinfo · 16th February 2007, 06:16

If the money was fraudulently taken from this guys account, then he is
entitled to be refunded. And it would be at your expense as you were the person who benefitted.

Did you check the guys history and reputation before dealing with him?
As you paid through Paypal, and the guy was a regular with them, did the money go to the usual bank specified, or a different one? If a different one,
why was it authorised by Paypal without checking? If it went to the usual bank, is the guy lying?

Unfortunately Paypal is not a bank and in situations like this does not act like
one either. Are you dealing with Paypal UK, or USA? Where does the guy live?

Did you send something through the post, or via the web?

Not everyone checks their statement every time or on time, though you would
have thought that for an amount of that size, it would have been noticed
earlier.
Have you checked with your credit card fraud department, to see what time
limit is involved for chargebacks? Can you override Paypals request if you
are not happy that fraud was involved? Or how much proof do Paypal need
to supply to get the chargeback?

Silverblade · 16th February 2007, 08:23

Quote:

Originally Posted by lookinforinfo

If the money was fraudulently taken from this guys account, then he is
entitled to be refunded. And it would be at your expense as you were the person who benefitted.

Did you check the guys history and reputation before dealing with him?
As you paid through Paypal, and the guy was a regular with them, did the money go to the usual bank specified, or a different one? If a different one,
why was it authorised by Paypal without checking? If it went to the usual bank, is the guy lying?

Unfortunately Paypal is not a bank and in situations like this does not act like
one either. Are you dealing with Paypal UK, or USA? Where does the guy live?

Did you send something through the post, or via the web?

Not everyone checks their statement every time or on time, though you would
have thought that for an amount of that size, it would have been noticed
earlier.
Have you checked with your credit card fraud department, to see what time
limit is involved for chargebacks? Can you override Paypals request if you
are not happy that fraud was involved? Or how much proof do Paypal need
to supply to get the chargeback?

Ok thanks for the detailed reply lookinforinfo.

No I did not check the guys history or reputation, he sent the money first, payment type was instant so I received the money straight away. I think you might of got confused with what I said, he was sending ME the money, I wasn't sending him. So I don't know how the money was sent to the bank will help me in my case.

As for which Paypal I use, Im from Australia and use Paypal Aus, he's from the UK.

I sent something to him VIA the web.

Subject:
Runescape Blue PhatNote:
This money is for a user name and password of a runescape account with a rare blue phat on to be emailed to [hisemailinhere] asap..Postal
Address:
No Address Provided

That's what came up when he sent me the money. So maybe that can work to my advantage?

I'm not too sure about my Fraud Department but i'll start reading about it and get some more information about it.

Thanks!

podgydad · 16th February 2007, 08:57

This is a common scenario for retailers that accept credit cards. The retailer is always the one at risk of a chargeback for fraudulent card use. In essence the burden is on the seller to ensure the transaction isn't fraudulent.

happyandbroke · 16th March 2007, 18:12

Same thing has just happened to me only today. I did check the buyer out 1st, he had only joined ebay on the day i started the auction so he had zero feedback! I was wary. the payment was instant thru paypal & I also called paypal to check the authenticity of the payment.They said it was 100% authentic. I thought I'd give him a chance, cos everyone has to start somewhere...right?

I haven't got proof in form of receipts or tracking details but I have managed to find the original ebay listing which shows him in the bidding history etc. This guy was intimidating & TOLD me he will collect from my house on a particular day & asked for my address, as i wasnt happy wth this i offered him my boyfriends mobile tel no but he never rang. i got a 2nd email saying he was coming 'tomorrow' at 2pm & demanded my address.... hey hang on i'm at work, he dont dictate to me! so i emailled telling him to pick his item up from my boyfriends place of work. the buyer sent a guy in a transit van. we do have witnesses. but what happens if the buyer categorically denys it. hes got my surround sound system & is trying to get his money back thru paypal....the cheeky git. what options do we have, does anyone know?

bidstermeister · 17th March 2007, 13:58

Never EVER EVER accept PayPal as payment and allow the buyer to collect. You have absolutely no proof of transfer of goods, and it'll be your word against theirs - and in situations like that, PayPal will find in their favour.

cbrundle · 17th March 2007, 21:28

just take the hit and close your paypal account, instruct your bank to make no payments to paypal

and start afresh, inconvenient yes, but for the sake of $2000! ouch!

iwgunter · 18th March 2007, 12:34

Quote:

Originally Posted by cbrundle

just take the hit and close your paypal account, instruct your bank to make no payments to paypal

and start afresh, inconvenient yes, but for the sake of $2000! ouch!

But make sure you sign up with a different bank account, credit card and address - otherwise they link the accounts and take the money from the new one.

Had it happen to me and had to wait 3 or 6 months to get my money back from them, was about £400

happyandbroke · 19th March 2007, 09:03

Quote:

Originally Posted by iwgunter

But make sure you sign up with a different bank account, credit card and address - otherwise they link the accounts and take the money from the new one.

Had it happen to me and had to wait 3 or 6 months to get my money back from them, was about £400

Thanks for the replies. I'm a little confused though, yes i can close my paypal a/c but not my bank, i currently have a £1100 overdraft & its just not practical to do, so would just instructing my bank not to make any payments to paypal be enough?

happyandbroke · 19th March 2007, 11:13

I just tried to close my account with paypal but it won't let me as its in "temporary hold". I only hope my bank follows my instructions not to pay!

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