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  1. #1
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    Angry Paypal settlement charges for un-authorized payment , what the hell ? Need help

    Hi,
    We had a customer who signedup in january 2012.
    He signedup Paypal Subscription. His account got activated within seconds.
    Suddenly in starting of Feb 2012, he filed case of un-authorized payment.

    Just now case was solved and paypal charged us $10(Settlement charges) + $2(Hosting fee which he has paid)

    In resolution center we provided his signup details, his IP and all those which are required. But nothing worked.
    What I think, buyer should contact hosting company in such case.

    So in whole scenario, it was not our fault. We lost $10 for nothing. And above this, there is no way to tell this to Paypal.

    How can I contact Paypal ? Paypal is running in India and it should have its office but no address or tel number is given.

    It screws up !!
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  2. #2
    I think this is just the nature of business tbh. I don't reckon it's worth spending much time over $10. Frustrating as it is, just cut your losses and move on.

  3. #3
    Join Date
    Dec 2005
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    3,110
    We have seen much larger settlement fees than $10... It sucks but its one of the drawbacks of using PayPal, despite all the claims they offer little to no protection for sellers.

  4. #4
    Quote Originally Posted by PCS-Chris View Post
    We have seen much larger settlement fees than $10... It sucks but its one of the drawbacks of using PayPal, despite all the claims they offer little to no protection for sellers.
    It's sad that they treat sellers like this. If nobody accepted PayPal, then nobody would really use PayPal. PayPal doesn't seem to understand it's the sellers keeping them in business and by not treating them right they are only hurting themselves.

  5. #5
    Join Date
    Jan 2011
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    You can contact them through email but I think its useless to spend your time and effort for $10 only. You should look for a second option also for receiving payments.

  6. #6
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    Quote Originally Posted by benjohnsonfs View Post
    You can contact them through email but I think its useless to spend your time and effort for $10 only. You should look for a second option also for receiving payments.
    Sellers dont have any choice rather to just give away $10.
    Its not just amount, its about principle.
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  7. #7
    Join Date
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    10 dollar isn't much for a business ... cry an hour and get over it. If you can't live with it stop using Paypal, it's the only solution.
    If you pay peanuts, you get monkeys.

  8. #8
    Join Date
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    Quote Originally Posted by PCS-Chris View Post
    We have seen much larger settlement fees than $10... It sucks but its one of the drawbacks of using PayPal, despite all the claims they offer little to no protection for sellers.
    With most other payment methods the fees are going to be higher than that. Chargeback fees from credit card merchant accounts are generally $25 or more.
    Karl Zimmerman - Founder & CEO of Steadfast
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  9. #9
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    Quote Originally Posted by KarlZimmer View Post
    With most other payment methods the fees are going to be higher than that. Chargeback fees from credit card merchant accounts are generally $25 or more.
    Yep, I'd love to pay only $10. Consider yourself lucky.

  10. #10
    Join Date
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    Australia
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    Quote Originally Posted by troboy View Post
    Sellers dont have any choice rather to just give away $10.
    Its not just amount, its about principle.
    The thing that annoys me is PayPal handle the transaction, say it is ok and give you the money.
    Then you provide the service.
    Then PayPal takes back the money and charges you $10 for taking the money they gave you.

  11. #11
    Join Date
    May 2010
    Location
    Ohio
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    Now that is horrible. Did the client contact you first about leaving or did he/she just up and leave?

  12. #12
    Join Date
    Jan 2003
    Location
    Chicago, IL
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    Quote Originally Posted by BeZazz View Post
    The thing that annoys me is PayPal handle the transaction, say it is ok and give you the money.
    Then you provide the service.
    Then PayPal takes back the money and charges you $10 for taking the money they gave you.
    Yes, I agree, that is the trouble with PayPal. With PayPal payments PayPal has all the info, they're the ones in a position to verify the transaction and information, but you as a vendor have a lot less information than you'd get with a standard credit card transaction. I do not understand why PayPal does so little to prevent fraud themselves, not even requiring any sort of account security (such as the one-time security codes) and then not telling the vendor when such a code was used...
    Karl Zimmerman - Founder & CEO of Steadfast
    VMware Virtual Data Center Platform

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  13. #13
    Quote Originally Posted by troboy View Post
    Hi,
    We had a customer who signedup in january 2012.
    He signedup Paypal Subscription. His account got activated within seconds.
    Suddenly in starting of Feb 2012, he filed case of un-authorized payment.

    Just now case was solved and paypal charged us $10(Settlement charges) + $2(Hosting fee which he has paid)

    In resolution center we provided his signup details, his IP and all those which are required. But nothing worked.
    What I think, buyer should contact hosting company in such case.

    So in whole scenario, it was not our fault. We lost $10 for nothing. And above this, there is no way to tell this to Paypal.

    How can I contact Paypal ? Paypal is running in India and it should have its office but no address or tel number is given.

    It screws up !!
    I had this same issue one time. Hosting is a service, not a product (like an ipad). Pay Pal will not refund services.

  14. #14
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    Now that is horrible. Did the client contact you first about leaving or did he/she just up and leave?
    No he didnt contact. We sent him email regarding this but received no reply
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  15. #15
    Quote Originally Posted by Honey_Hosting View Post
    I had this same issue one time. Hosting is a service, not a product (like an ipad). Pay Pal will not refund services.
    Um, his post says the exact opposite - PayPal did refund a service, and did so without offering him the chance to present his case.

    Incidentally, if PayPal doesn't offer you the chance to respond, I've heard this can be because the transaction was disputed via the card issuer, and PayPal does not defend against card issuer challenges. Sucks, and it's the reason I refuse to accept PayPal now.

  16. #16
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    Incidentally, if PayPal doesn't offer you the chance to respond, I've heard this can be because the transaction was disputed via the card issuer, and PayPal does not defend against card issuer challenges. Sucks, and it's the reason I refuse to accept PayPal now.
    Thats the problem, Paypal just read one side of coin. I think WE as a hosting providers should do something.
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  17. #17
    Quote Originally Posted by nerdie View Post
    Yep, I'd love to pay only $10. Consider yourself lucky.
    PAYPAL charged me $20 plus the $0.99
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  18. #18
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    Quote Originally Posted by troboy View Post
    No he didnt contact. We sent him email regarding this but received no reply
    Maybe I'm missing the obvious, but what if it was a fraudulent signup? Do you have any reasons to believe it wasn't stolen PayPal details?

    I'd say that 80% of our potential signups are fraudulent so if you don't have any anti-fraud measures, get some!
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  19. #19
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    This kind of no-seller-protection principle is the reason why we started using 2checkout and stopped using PayPal.

    We have a policy to manually verify each and every order.

    There's a catch here. Some clients may refuse to give you their personal details (like passport photocopy), but it is better to leave them alone. A genuine customer will always want to give you proof that they mean business.

  20. #20
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    I am thinking about using maxmind service
    Anybody used it ? Is it gonna help ?
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  21. #21
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    Quote Originally Posted by troboy View Post
    I am thinking about using maxmind service
    Anybody used it ? Is it gonna help ?
    It's by no means perfect, but it helps a great deal with some of the more obvious fraudulent orders (e.g. open proxies, orders across continents).
    GigaTux, Value Linux Hosting
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  22. #22
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    Quote Originally Posted by troboy View Post
    I am thinking about using maxmind service
    Anybody used it ? Is it gonna help ?
    Yes it helps. Make sure you implement the telephone verification component of Maxmind as well.
    [ James Lee - Cloud & Web Hosting Specialist 10+ Years WHT Veteran]

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  23. #23
    Quote Originally Posted by troboy View Post
    I am thinking about using maxmind service
    Anybody used it ? Is it gonna help ?

    It works great!!! They use a number system to block auto setups, and may block good orders. It does allow you to manually approve the orders, so not too bad. Worth the extra effort.

  24. #24
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    Yes it helps. Make sure you implement the telephone verification component of Maxmind as well.
    Till now our hosting plans were setup in such a way that once payment is received, account automatically gets activated. Now we have switched to activation on admin's approval.
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  25. #25
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    Paypal has been in business for a LONG time. This isn't the first time they've screwed someone over, and it's NOT going to be the last. A simple google search will come up with thousands of pissed off paypal user's. You really shouldn't even be surprised either. It's not a matter of "If" its going to happen, it's only a matter of "when" is it going to happen.
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