Thursday, March 30, 2006
PayPal & chargebacks
Chargebacks are becoming more and more of a problem for Sellers.
It seems a buyer only has to request a charge back from Paypal, and Paypal will duly comply without checking with the seller first.
The seller then has the funds deducted from their Paypal account.
If there are no funds in the Paypal account, then Paypal will demand payment from the Seller with all sorts of threats to make the seller pay up.
You can read more by going to the Ebay Community pages and entering "Chargeback" into the search field.
At the moment I have a car for sale with a 0 feedback bidder in first place. I know I will be doing some investigations before sending it out if they win the bid.
Otherwise:
Try not using Paypal (not necessarily a good option).
If the reason for Chargeback is item not received, you may be able to claim compensation from the Royal Mail. Always keep proof of sending receipts.
Invesigate potential buyers as much as possible before shipping the item.
Send the buyer a letter threatening them with the small claims court.
Follow the Paypal Protection policy.
See also http://www.auctionbytes.com/cab/abu/y203/m10/abu0105/s02 about the risks of chargebacks.
Happy Selling.
Mike
It seems a buyer only has to request a charge back from Paypal, and Paypal will duly comply without checking with the seller first.
The seller then has the funds deducted from their Paypal account.
If there are no funds in the Paypal account, then Paypal will demand payment from the Seller with all sorts of threats to make the seller pay up.
You can read more by going to the Ebay Community pages and entering "Chargeback" into the search field.
At the moment I have a car for sale with a 0 feedback bidder in first place. I know I will be doing some investigations before sending it out if they win the bid.
Otherwise:
Try not using Paypal (not necessarily a good option).
If the reason for Chargeback is item not received, you may be able to claim compensation from the Royal Mail. Always keep proof of sending receipts.
Invesigate potential buyers as much as possible before shipping the item.
Send the buyer a letter threatening them with the small claims court.
Follow the Paypal Protection policy.
See also http://www.auctionbytes.com/cab/abu/y203/m10/abu0105/s02 about the risks of chargebacks.
Happy Selling.
Mike
