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  1. #1
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    Isn't it against PayPal policy?

    Hey,

    There is a line on the terms of service of stating that they will terminate your service if you file a PayPal dispute.. Isn't this against PayPal policy? How is it that a company can refuse you service you paid for irregardless of a paypal dispute?

    If you lose the dispute doesn't the company still have to provide service? If you win, they then can cancel service as you didn't pay. correct?

  2. #2
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    Quote Originally Posted by bluemer View Post
    There is a line on the terms of service of stating that they will terminate your service if you file a PayPal dispute.. Isn't this against PayPal policy? How is it that a company can refuse you service you paid for irregardless of a paypal dispute?
    This may not be against 'paypal' policy, but it's definitely borderline illegal. Remember, just because it's in a TOS doesn't make it legal.
    Quote Originally Posted by bluemer View Post
    If you lose the dispute doesn't the company still have to provide service? If you win, they then can cancel service as you didn't pay. correct?
    With service, there is no "if you lose", it is "when you lose", as the client. If you pay for services via paypal, using funds on your account, or 'instant transfer' (ACH / bank withdrawal), you're toast. Their terms specifically state that services are ineligible for 'buyer protection', which is the proper action to take, because the seller has no protection either, from unruly buyers. This is why I never, ever pay for new accounts using paypal directly, always through the paypal debit card (which isn't under those same terms).
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  3. #3
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    Hmm.. So would it be possible to then file a dispute with your credit card issuer directly to then get the funds from PayPal?

    Basically.. I would think it would be illegal definitely. It's like saying.. Hey we'll do business, but the moment you complain, were done. Aren't they still liable to provide the services, or refund the money paid for such services?

  4. #4
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    Quote Originally Posted by bluemer View Post
    Hmm.. So would it be possible to then file a dispute with your credit card issuer directly to then get the funds from PayPal?
    IF you paid directly through credit card, it's best not to bother with paypal, go to the cc issuing bank itself, as paypal won't find in your favor.
    Quote Originally Posted by bluemer View Post
    Basically.. I would think it would be illegal definitely. It's like saying.. Hey we'll do business, but the moment you complain, were done. Aren't they still liable to provide the services, or refund the money paid for such services?
    There's a bit of a grey area there, which is why I said it might be considered illegal depending on the area.

    Did they provide you with any sort of service? If that's yes, then they as a company deserve to be compensated for it.
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  5. #5
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    I understand that.. thank you for replying.. I absolutely believe they should be compensated for the service used.

  6. #6
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    Does anyone else consider this line in a Terms of Service, Illegal/Wrong?

    Disputes / Charge Backs: Disputed or Charged Back payments will result in immediate service termination without notification, and will incur a $100.00 adminsitrative fee. This includes disputed payments that are awaiting refund. If you dispute or charge-back a payment that is currently inside of the refund process, you will forfeit your refund in it's entirety. Disputes and charge backs will be challenged under all circumstances.

  7. #7
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    Apparently I'm not understanding.

    If you do a charge back, why would I provide you service? Not only did you not pay for it, but you now cost me additional money.
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  8. #8
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    I'm talking you not providing the service you promised. I contact my bank, and they dispute the charge/hold the charge.

    I don't believe that is the same as a charge back..

  9. #9
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    Quote Originally Posted by bluemer View Post
    I'm talking you not providing the service you promised. I contact my bank, and they dispute the charge/hold the charge.

    I don't believe that is the same as a charge back..
    That's still a chargeback.
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  10. #10
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    I highly doubt it's legal to charge someone $100.00 for them disputing charging them for a service your not providing them. How is it?

  11. #11
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    Quote Originally Posted by bluemer View Post
    I highly doubt it's legal to charge someone $100.00 for them disputing charging them for a service your not providing them. How is it?
    It's legal. Most of the top web hosts do it because chargebacks cost money, not only is the money gone, but you now get a chargeback fee, etc.

    Now, it doesn't mean you have to pay it, but it's not illegal to invoice you for the fee.
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  12. #12
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    So what would be the thing to do if you buy service, they don't provide service they're suppose to, what else can you possibly do other then a charge back? It doesn't seem like it would be legal because what other choice does a consumer possibly have?

  13. #13
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    Quote Originally Posted by bluemer View Post
    So what would be the thing to do if you buy service, they don't provide service they're suppose to, what else can you possibly do other then a charge back? It doesn't seem like it would be legal because what other choice does a consumer possibly have?
    The key question is: who gets to decide whether or not the service is as it's supposed to be? And exactly how is it supposed to be anyway? There are cases where the host is doing a lousy job and the client is justifiably dissatisfied, and then there are cases where the client's expectations and actions (eg. instant dispute / chargeback) are totally unreasonable.

    Either way the client's best defence is to limit their liability by paying monthly, particularly with a new / untested host. Personally I regard a month's fees as simply the price I pay to find out how good a host really is.
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  14. #14
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    How about trying to work it out with the provider? If it doesn't work out, then kindly ask for a refund. It really depends on the nature of the issue. Sometimes, customers seem to think they're 100% right when they're the ones being completely unreasonable.

    A chargeback/dispute should be the absolute last resort if you're unable to work it out with your provider. Too many people seem to think it's a magic refund button and use it as such.

  15. #15
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    Quote Originally Posted by WickedFactor View Post
    A chargeback/dispute should be the absolute last resort if you're unable to work it out with your provider. Too many people seem to think it's a magic refund button and use it as such.
    Here I fully agree. A chargeback is a last resort option. Unfortunately, most providers don't respect the client enough here, and when confronted on their lackluster performance pull stunts like this.
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  16. #16
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    Quote Originally Posted by WickedFactor View Post
    How about trying to work it out with the provider? If it doesn't work out, then kindly ask for a refund. It really depends on the nature of the issue. Sometimes, customers seem to think they're 100% right when they're the ones being completely unreasonable.

    A chargeback/dispute should be the absolute last resort if you're unable to work it out with your provider. Too many people seem to think it's a magic refund button and use it as such.
    I agree with WikcedFactor. First you'll want to attempt to resolve the issue with the web host. If you aren't happy, then you could launch a PayPal dispute. The very last thing is a chargeback.


  17. #17
    Which policy of paypal do you think it against?

  18. #18
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    Quote Originally Posted by linux-tech View Post
    IF you paid directly through credit card, it's best not to bother with paypal, go to the cc issuing bank itself, as paypal won't find in your favor.[
    Not if you paid via credit card with a card that's attached to a PayPal account. If you don't go through the dispute process first PayPal can terminate your PayPal account, or that's how I understand their legalese.
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  19. #19
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    I still don't understand still what your trying to get at.

    Anyhoo, If you file a back charge, doesn't it effect your credit rating?
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  20. #20
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    Quote Originally Posted by jwebhost View Post
    I still don't understand still what your trying to get at.

    Anyhoo, If you file a back charge, doesn't it effect your credit rating?
    I don't see why it would, chargebacks are a process that protects credit card holdere from fraud and identity theft. I don't know that it goes on your credit report, I filed 3 legitimate chargebacks in the last 5 years and there are no signs of them on any of my credit reports.
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  21. #21
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    Oh okay, just thought it might. Never mind.
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