Recently we had a problem with a client and cancelled his account with 8 days remaining until the end of the month. Everything was correct on our end, We cited our TOS and sent him/her an email explaining why the account was cancelled. This client then turned around and went to PayPal wanting a full refund!

We decided to go ahead and give him back his money ($55) to avoid any problems with PayPal putting our account on hold..

What I'm asking is what is the recourse for companies in a situation like this? I wanted to fight it as we did nothing wrong but I don't want alot of hassle for $55.... and screw up our account with PayPal...

If he does issue a chargeback via paypal say its non-tangable goods. In those cases they normally rule in your favour

Rus

PayPal will not usually rule in favor of a business selling intangible goods because you are not covered by their seller protection. Unfortunately I have had a few cases of this.

It seems that you would have little luck getting the $55 back if you refunded him already.

If you have refunded him the money, you did it voluntarily (BASICALLY)....so you can hang that up.

For future reference, When it is an intangible good and the client complains to PP, when you receive the information/email reply quickly and where it ask for shipping information, type - "NON-TANGIBLE GOOD" and do so as soon as you receive it.

PP will close the case, the only catch is IF they paid via CC and not PP funds then they will (or can) do a chargeback with their CC company and PP will then enforce the chargeback on your account.

This may not be the case for all folks, BUT it has been in my experience and it has happened more than once. You have many folks (not just the spammers/fraud users) signing up INCLUDING those that intend on working the system.

Good luck in the future:)

Thats fine I didn't want to get the money back I wanted to find out for next time if this comes up again.

Thanks!