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  1. #1

    Disputing paypal complaints.. advice?

    A thread in the 'running a web hosting business' forum got me thinking about this again, as a host mentioned that buyer protection does not cover services so disgruntled (for example, terminated under your TOS) customers can't dispute the payment.

    However, in my experience, they manage to dispute it anyway, and there is no way to fight it. Next time I get a dispute I should take a screenshot to show how ridicilous their system is - there is only one button on the view dispute page called "Resolve Complaint". That button leads to 3 radio buttons and 3 radio buttons alone - provide tracking information, provide proof of previous refund (which does not let you type anything but asks to fax receipts or such), or issue full refund now. No option allows you to argue your case or mention the fact that the dispute was filed fraudulently, lying to PayPal that the sale was a good and not actually a service, which would not have led to a dispute opening.

    I have tried e-mailing PP while a dispute was open: I gave the complaint ID, explained that the sale was of a service and that no refund is due (in more detail than that), and referred to the text of the buyer protection policy that states sales of services and other intangible goods are not covered. I got a "we will look into it" type of response and no follow-up. The dispute closed itself with a refund to the customer after the default 10 days.

    Does anyone have a different experience to share? How exactly have you gone about closing a PayPal complaint outside their 3 radio button system?
    Dan Grossman - dan @
    My Blog | Affiliate Program for Web Hosts

  2. #2
    Join Date
    Jan 2005
    San Jose, CA
    Out of curiosity, do you collect a shipping address from your buyers? I am wondering if the fact that a payment has no shipping address indicates to the Customer Service agents that the complaint does not qualify.

  3. #3
    Join Date
    Jun 2003
    In these cases I normally ring them up and ask to speak to someone. Also remembr to say if its a virtual service as Paypal doesn't cover those and the seller normally wins that

    Russ Foster - Industry Curmudgeon

  4. #4
    Join Date
    Jan 2003
    I once ran a software ecommerce system and used PayPal (with my personal account, which was a HUGE mistake) for payments. The website would process the order, take the user to paypal, then it sends them back to our website and it sends them an email to the download link. Some customers didn't get what they expected (even agreeing to the terms, having to check a box) and decided to file a claim with PayPal to get their money back.

    PayPal sent me an email notifying me of this and give me options to either refund their money or provide shipping (note: nothing was needed to ship). I ignore the email because I couldn't do anything that would satistfy my needs (which was a mistake). A few days later I get an email stating that my account has been locked, which means that I cannot do anything but transfer money to my paypal account or close it. I called them up and asked if I could receive money from my business partner (another PayPal user) and was denied. I told them that the customer agreed to the terms but they denied my attempt again to have the account unlocked and remove the refund. Somehow I managed to scrounge up some extra cash into my bank account and move it over into my paypal account (which took a couple of days) then after the money was in my account, it managed to stay locked several days afterwards until the locks were removed. They had to figure out who was the 'winner', so to say, in the refund battle and I just caved in and sent an email to one of their departments that said "Do whatever it takes to unlock my paypal account. Refund anyone and everyone now!" About a week later my account is opened back again and I'm overjoyed.

    PayPal and I have a love/hate relationship.

  5. #5
    Join Date
    Aug 2001
    From my experience PayPal offers little protection to seller's not providing tangible goods. I've tried disputing several false buyer complaints with no luck. It doesn't seem to matter how much evidence, facts or logic I give them... they aren't willing to do the work to investigate the situation toroughly. Even in the most obvious circumstances where a buyer's claims weren't warranted, they ended up siding with them still.

    I think I'm just about done using PayPal, I just don't feel safe anymore in accepting payments through them or leaving my money in my account. Customer service is crap too.

  6. #6
    all 3rd party payment processors dispute policy's are same because they will receive a chargeback.

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