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  1. #1

    Paypal made a huge mistake! Double deduction

    Paypal just made a double deduction from my account.

    This is the story.

    I received a payment on Aug 21.
    I suspect the payment to be fraudulent. So i refunded the payment fully on the same day (Aug 21).

    Indeed, a few hours later, the buyer filed a complaint for unauthorized access.
    So, i resolve the complaint by providing Paypal with the Refund transaction id.

    Yesterday, I just received an email from Paypal that inform me that the case has been resolved. How do they resolve the case? They deducted the disputed amount from my account, even though I have already refunded the payment fully previously.

    So there you go. Double deduction.

    I don't understand how Paypal could have made this mistake when i have provided them with the refund transaction id.

    What should I do now? I have already emailed them informing of the mistake but after experiencing canned (template) response from them, i'm skeptical if they even read my message.

    Have anyone experienced this before?

  2. #2
    Join Date
    Oct 2001
    Location
    Ohio
    Posts
    8,299
    Quote Originally Posted by mflo
    Paypal just made a double deduction from my account.

    This is the story.

    I received a payment on Aug 21.
    I suspect the payment to be fraudulent. So i refunded the payment fully on the same day (Aug 21).

    Indeed, a few hours later, the buyer filed a complaint for unauthorized access.
    So, i resolve the complaint by providing Paypal with the Refund transaction id.

    Yesterday, I just received an email from Paypal that inform me that the case has been resolved. How do they resolve the case? They deducted the disputed amount from my account, even though I have already refunded the payment fully previously.

    So there you go. Double deduction.

    I don't understand how Paypal could have made this mistake when i have provided them with the refund transaction id.

    What should I do now? I have already emailed them informing of the mistake but after experiencing canned (template) response from them, i'm skeptical if they even read my message.

    Have anyone experienced this before?
    Go to Paypal's website. Go to the dispute resolution center. From there, select the dispute. Now select that you wish to fight the dispute and for the reason why, select from the drop down menu "Previously refunded."

  3. #3
    Join Date
    Feb 2001
    Location
    West Michigan, USA
    Posts
    9,675
    Did you do an actual Paypal refund, or did you simply send the amount back to them via the "Send Payment" feature?

    Either way, call Paypal up on the phone and tell them what happened. Their email support is mediocre, at best. Their phone support is usually pretty awesome.

    --Tina
    ||| 99.999% Uptime SLA!!!
    Plenty of space and bandwidth to fit your needs!
    www.AEIandYou.com - - (WP Friendly - Premium Reseller Hosting and Cheap Dedicated Servers)

  4. #4
    The same thing happened to me once. Say good bye to your money.
    Eleven2 Web Hosting - World-Wide Hosting, Done Right!

  5. #5
    Join Date
    Nov 2003
    Location
    Newport Beach, CA
    Posts
    2,920
    First thing I'd do is call them. Tina also has a very good point. if you simply sent another transaction there could be an accidental mis-match

  6. #6
    Join Date
    Aug 2006
    Posts
    37
    I know they have a phone number. It's hard to find. Let me dig it up...

  7. #7
    Its not hard to find; there's a search feature in their faq that'll bring up the #. This is a valuable lesson, as this happens quite often...its better not to issue the refund and wait till the dispute/let paypal take the cash out themselves. They'll usually place it on "hold" and then take it out after 30 or so days.

  8. #8
    Join Date
    Oct 2005
    Location
    Fleet Street
    Posts
    3,243
    This happened to me once too...gotta love it. Their account gets hacked, you refund the payment, then they want their money back (again).

  9. #9
    Quote Originally Posted by AH-Tina
    Did you do an actual Paypal refund, or did you simply send the amount back to them via the "Send Payment" feature?

    Either way, call Paypal up on the phone and tell them what happened. Their email support is mediocre, at best. Their phone support is usually pretty awesome.

    --Tina
    I did the actual Paypal refund via the Refund link

  10. #10
    Quote Originally Posted by rohitj
    Its not hard to find; there's a search feature in their faq that'll bring up the #. This is a valuable lesson, as this happens quite often...its better not to issue the refund and wait till the dispute/let paypal take the cash out themselves. They'll usually place it on "hold" and then take it out after 30 or so days.
    If you wait till they take out the cash themselves, you'll have to pay for the transaction fee. You make a loss.
    If you do a refund, the transaction fee is refunded. You don't make a loss. So this is better.

  11. #11
    Quote Originally Posted by inogenius
    Go to Paypal's website. Go to the dispute resolution center. From there, select the dispute. Now select that you wish to fight the dispute and for the reason why, select from the drop down menu "Previously refunded."
    I've done that. I've provided them with the refund transaction id.

    and Yet, they still do the double deduction. this is what shocked me. Do they even check the transaction id that i provide them with?

  12. #12
    Join Date
    Dec 2005
    Location
    Australia, Brisbane
    Posts
    147
    Quote Originally Posted by rohitj
    Its not hard to find; there's a search feature in their faq that'll bring up the #. This is a valuable lesson, as this happens quite often...its better not to issue the refund and wait till the dispute/let paypal take the cash out themselves. They'll usually place it on "hold" and then take it out after 30 or so days.
    Thats what I usually do, however sometimes i get a $10 settlement fee!! for the reversal as paypal must have declined it then the creditcard company reversed it causing me to have a $10 fee.

    after this happens a few times it really annoys you.

  13. #13
    Quote Originally Posted by hornstar
    Thats what I usually do, however sometimes i get a $10 settlement fee!! for the reversal as paypal must have declined it then the creditcard company reversed it causing me to have a $10 fee.

    after this happens a few times it really annoys you.
    The $10 is nothing. The transaction fee is the killer.
    If you have a fraud payment of high value (eg. $2000), you have to pay the transaction fee when they reverse the payment.

    This is unlike a refund, where you need not pay the transaction fee.

  14. #14
    Join Date
    May 2006
    Location
    San Antonio, TX
    Posts
    16
    I find that their phone support helps alot. They usually help me if they can otherwise they tell me what needs to be done. Hopefully they won't just send you back and tell you to fill out an electronic form.
    K. Gato
    KJServers Systems Administrator
    www.KJServers.com

  15. #15
    Quote Originally Posted by IG-Kyle
    I find that their phone support helps alot. They usually help me if they can otherwise they tell me what needs to be done. Hopefully they won't just send you back and tell you to fill out an electronic form.
    Yes. You are right. Their phone support is very good.
    They are rectifying the error now.
    Keeps my fingers cross. Hopefully, i'll see the funds back in my account soon.
    Will keep you all updated.

  16. #16
    Never paid transaction fees in the numerous times this has happened. Not sure why that is but support has often been to the rescue for me. Its much better than what it was 4 or so years ago, where you had an email address that would, eventually, result in a cooke-cutter response.

  17. #17
    Join Date
    May 2006
    Posts
    1,398
    yeah, had this happen before too, Paypal has got where they do not even answer my support emails no more and when I call them they tell me to go send an email. Im about sick of them but its so widely accepted. I have learned not to accept large amounts via paypal. No matter how deep you verify someone and provide that proof to them they always screw me.
    I think people should be responsible for their own accounts unless there is some paypal site exploit, this is getting ridiculous. Why should everyone else suffer because some idiot gives out his password on some phising email? But I bet that at least 90% of all these so called "unauthoriozed funds" bit is really just some cheap butt trying to get something for nothing because they know they can do it.
    I know I have done my fair share of griping about paypal. I had one guy I done some work for, setup a server, installed control panel and all for $125 he had the paypal reversed right after I done the work. Paypal ended up reversiing the funds even after I provided them proof of everything with extensive verification. Anyway I got to googling and this same exact guy has done this many times on abay and for digital goods & services. It appeared he had done this at least 5 times before me, all fairly large amounts except one $20 amount, what a joke. Anyway despite this paypal refunds his money every time no questions asked over the "unauthorized funds" bit. When you ask paypal about this going on you will never get a straight answer.
    I know this reply is a lil bit unrelated in some aspects I just wanted to point out the problems with paypal and how these "unauthorized" transactions and "stolen" paypals are getting out of hand. I think people should be responsible for their own account. I see the day soon where more and more of this is going to happen. After all the warnings and basically common sense there are still some idiots who get their paypals stolen, it is beyond me. I still think a great number of these so called stolen paypals are not stolen at all.

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