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  1. #1
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    3+ month old transaction chargback

    Anyone have idea how paypal handles old transaction chargeback, which I think are even out of their 60 days policy ?

    Client order service
    pays via paypal
    leaves after 2-3 months
    files chargeback after 4 months via CC
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  2. #2
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    Quote Originally Posted by Kusai View Post
    Anyone have idea how paypal handles old transaction chargeback, which I think are even out of their 60 days policy ?

    Client order service
    pays via paypal
    leaves after 2-3 months
    files chargeback after 4 months via CC
    The question is, was it a legitimate order? Or was the card used fraudulently?

    Unfortunately, only the card holder knows the truth.

    If it was in fact a legitimate order, then this is nothing more than theft in my opinion.
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  3. #3
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    Quote Originally Posted by HostMantis View Post
    The question is, was it a legitimate order? Or was the card used fraudulently?

    Unfortunately, only the card holder knows the truth.

    If it was in fact a legitimate order, then this is nothing more than theft in my opinion.
    Legitimate order
    and you are right, IT IS theft
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  4. #4
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    Happens often, part of the business...

  5. #5
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    Yup, that's a big downfall with business. Some credit card companies allow charge backs up to 6 months, it's even worse when you have a credit card merchant because not only do you lose your original payment but they also charge for the charge back ($15-$25).

  6. #6
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    Quote Originally Posted by Tuxxin View Post
    Yup, that's a big downfall with business. Some credit card companies allow charge backs up to 6 months, it's even worse when you have a credit card merchant because not only do you lose your original payment but they also charge for the charge back ($15-$25).
    I have seen AMEX do that even after a year. But the question here is how does paypal handle that since its even out of their policy period. Do they suck it up, take seriously and follow up, or just stick the tab to us regardless of the policy ?
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  7. #7
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    If I were you, I wouldn't leave it with that. I would escalate it.
    People who do that should be put in jail.
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  8. #8
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    @24x7group I agree with you, but how ? once paypal is done having butts*x with us. We are left with no option.
    I would love to have paypal amend their policy for a merchant to directly follow up on the case with all details provided and disclosed related to fraud.
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  9. #9
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    @Kusai

    If something like this happens to us, mainly from customers who make threats having their service suspended for repeated abuse, therefore are in violation with our terms and have no right on any refunds, they mostly open a dispute with paypal. We escalate it then to paypal and they review it.

    We simply provide them with proof the service was delivered, our policy doesn't offer a refund after 24h and certainly not on infringing our policy, and then their chargeback gets denied. Most of the time Paypal also gets in touch with their bank and 9 out of 10 times they cooperate.
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  10. #10
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    Nope no abuse or problems here, just a regular client who used services moved away. Looking back at a few email, it sounds like a small kid who did'nt like the flavor of his ice cream after finishing it and wants money back.
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  11. #11
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    Quote Originally Posted by 24x7group View Post
    @Kusai

    If something like this happens to us, mainly from customers who make threats having their service suspended for repeated abuse, therefore are in violation with our terms and have no right on any refunds, they mostly open a dispute with paypal. We escalate it then to paypal and they review it.

    We simply provide them with proof the service was delivered, our policy doesn't offer a refund after 24h and certainly not on infringing our policy, and then their chargeback gets denied. Most of the time Paypal also gets in touch with their bank and 9 out of 10 times they cooperate.
    I haven't had an issue like this in years but prior to 2010 they would make you eat it. On a normal Paypal dispute we would win all of them for the reasons above, but when it was with a credit card they would just remove the funds because it came from the bank.

    If they dispute the bank now, that's great..

  12. #12
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    Quote Originally Posted by 24x7group View Post
    @Kusai

    We simply provide them with proof the service was delivered,
    what proof ? can you give me an example? How can the proof be valid?
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  13. #13
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    Well, I assume you sent your customer hosting or server info via e-mail?
    Maybe he also opened support tickets for help where you or your support department answered on?

    We always confirm with a customer if he indeed placed an order with us and if they received the information correctly. Such small steps can help you a lot on cases like this
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  14. #14
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    If this is a chargeback by the card company then the owner of the card is claiming they know nothing about the transaction. At the point Paypal reverses the payment it is because the Credit Card company has investigated and satisfied enough to refund.

    They take the money back off Paypal and they take it back off you. Nothing you can do unless you have a POD that matches the card holders name and address.

    Paypal won't fight it for you as the decision has already been made.

  15. #15
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    Quote Originally Posted by W1H-Lee View Post
    If this is a chargeback by the card company then the owner of the card is claiming they know nothing about the transaction. At the point Paypal reverses the payment it is because the Credit Card company has investigated and satisfied enough to refund.

    They take the money back off Paypal and they take it back off you. Nothing you can do unless you have a POD that matches the card holders name and address.

    Paypal won't fight it for you as the decision has already been made.
    Well thats not the case, and still if they do reverse it. Then they can kiss my a$$ goodbye and to $xxxxx in annual fees they earn from my business.
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  16. #16
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    Quote Originally Posted by Kusai View Post
    Well thats not the case
    So it was not a chargeback then? What was it?

  17. #17
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    Quote Originally Posted by W1H-Lee View Post
    So it was not a chargeback then? What was it?
    Its just not "unauthorized". Dont wanna disclose a lot on public forum
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  18. #18
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    It seems you are stuck between a rock and a hard place. There is pretty much nothing you can do when it comes to non tangible items when sold through paypal. In most ways I think this is a good way to go about things but it does screw us over at times. Imagine a hacker got a hold of your cards and could simply make a dummy company and have your credit card order "100 servers" through his company and you'd be stuck paying the bill.

  19. #19
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    Here's some positive side might make me feel good.

    Under the trasaction details it said
    This transaction can’t be refunded

  20. #20
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    Quote Originally Posted by Kusai View Post
    Here's some positive side might make me feel good.

    Under the trasaction details it said
    This transaction can’t be refunded
    That doesn't mean it can't be charged back.

  21. #21
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    Quote Originally Posted by TremorHost View Post
    It seems you are stuck between a rock and a hard place. There is pretty much nothing you can do when it comes to non tangible items when sold through paypal. In most ways I think this is a good way to go about things but it does screw us over at times. Imagine a hacker got a hold of your cards and could simply make a dummy company and have your credit card order "100 servers" through his company and you'd be stuck paying the bill.
    I believe that's the primary reason that the infamous "paypalsucks.com" was started in the first place years ago. If I remember correctly, the founder(s) had been plagued with charge-backs and an alarming amount of fees from dishonest clients and credit card theft related orders.

    Sure, Paypal is a convenient method of payment for both parties in many ways -- but if you are the merchant and provide a service, don't be surprised if you're left holding the bag on occasion.

  22. #22
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    If you do nothing you are guaranteed to lose your money plus the cost of the charge back, plus the free service for 3 months that you delivered without being paid.

    If you escalate, it costs you nothing but time to prove you delivered the service, on I am guessing was a 12 month contract.

    As long as I can find them, I won't let anyone get away cheating out of hosting. Send a clear message to the charge back thieves.
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  23. #23
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    Quote Originally Posted by HostYourIdea View Post
    If you do nothing you are guaranteed to lose your money plus the cost of the charge back, plus the free service for 3 months that you delivered without being paid.

    If you escalate, it costs you nothing but time to prove you delivered the service, on I am guessing was a 12 month contract.

    As long as I can find them, I won't let anyone get away cheating out of hosting. Send a clear message to the charge back thieves.
    It was on month to month and already paid and used for service.
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