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  1. #1
    Join Date
    Oct 2008
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    /root/webhosting
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    879

    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
    Location
    Berkshire, UK
    Posts
    3,070
    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.
    SmartServerMangement (SSM)
    Specialists in SolusVM, VPS & cPanel Server Management

  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
    Posts
    660
    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
    Join Date
    Oct 2008
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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.
    ██ Website Hosting Mumbai | Web Hosting India
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    ██ sales[at]linkwayhosting.com | +91-9930-3388-67

  7. #7
    Join Date
    May 2002
    Posts
    1,037
    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
    Jan 2003
    Location
    Chicago, IL
    Posts
    6,786
    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 - Steadfast: Managed Dedicated Servers and Premium Colocation
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  9. #9
    Join Date
    Jul 2005
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    In the Internets
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    3,337
    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
    Jul 2006
    Location
    Australia
    Posts
    2,552
    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.
    cPanel, CloudLinux, Softaculous ℵ Off Site Backups, Redundant DNS

  11. #11
    Join Date
    May 2010
    Location
    NWO
    Posts
    393
    Now that is horrible. Did the client contact you first about leaving or did he/she just up and leave?
    I'll take a quarter pounder with fries and a coke, easy ice. Extra onions and pickles.

  12. #12
    Join Date
    Jan 2003
    Location
    Chicago, IL
    Posts
    6,786
    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 - Steadfast: Managed Dedicated Servers and Premium Colocation
    karl @ steadfast.net - Sales/Support: 312-602-2689
    Cloud Hosting, Managed Dedicated Servers, Chicago Colocation, and New Jersey Colocation
    Now Open in New Jersey! - Contact us for New Jersey colocation or dedicated servers

  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
    Join Date
    Oct 2008
    Location
    /root/webhosting
    Posts
    879
    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
    ██ Website Hosting Mumbai | Web Hosting India
    ██ Web Hosting Unleashed
    ██ cPanel-Fantastico Shared Hosting | 99.9% Uptime
    ██ sales[at]linkwayhosting.com | +91-9930-3388-67

  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.

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