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  1. #1
    Join Date
    Jul 2006
    Posts
    1,078

    PayPal Chargebacks- What to do?

    Hi Guys

    Ive got chargebacks on a clients signup for a yearly payment of 150

    It became obvious it was a fraudulent payment after we found out the Hosting had never been used

    So what should we do:

    Accept liabilty and Pay 11.25 EU of paypals fee's for chargeback handling or dispute it

    I have evidence of messages sent Payment records and Signup Dates

    Your advice guys?

  2. #2
    Join Date
    Apr 2003
    Location
    San Jose, CA.
    Posts
    1,622
    You mention that the account had never been used... so I'm assuming they never really cost you any significant amount other then the chargeback fee you've now received.

    If however it was for some sort of services which by offering the client you were unable to offer it to another client (ie they were tying up resources that could have otherwise have been sold to someone else...) then I might revise my advice.

    It's up to you as to wether the time and effort of getting your documentation in order is worth the $161.25EU you could regain, (I'm assuming there's no additional fees for disputing the chargeback.)

    I've only dealt with paypal chargebacks from the other end... purchased something that wasnt delivered. After PayPal said "tough luck" I disputed it with my credit card and got my money back when PayPal magicaly changed it's mind.

  3. #3
    Join Date
    Jul 2006
    Posts
    1,078
    I have provided the Service as i have ample resources left

    From my Server provider they have reccomended dispute it provide IP addresses message logs transaction dates and signup dates and a copy of the TOS we have

  4. #4
    Join Date
    Oct 2004
    Location
    Oneida, NY
    Posts
    2,842
    Quote Originally Posted by XHIServices
    I have provided the Service as i have ample resources left

    From my Server provider they have reccomended dispute it provide IP addresses message logs transaction dates and signup dates and a copy of the TOS we have
    And you will still lose unfortunately. Non face-to-face transactions are done at your own risk and unless you can prove physical shipment (not providing a service), you will not be able to fight the chargeback.
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  5. #5
    Join Date
    May 2003
    Location
    Florida
    Posts
    877
    Quote Originally Posted by XHIServices
    Hi Guys

    Ive got chargebacks on a clients signup for a yearly payment of 150

    It became obvious it was a fraudulent payment after we found out the Hosting had never been used

    So what should we do:

    Accept liabilty and Pay 11.25 EU of paypals fee's for chargeback handling or dispute it

    I have evidence of messages sent Payment records and Signup Dates

    Your advice guys?
    You say that it was obviously a fraudulent order. If that is the case, then I would just accept the refund and pay the PayPal fee.

    You also mention that you have email records. If you can prove that the transactions were with the actual owner of the PayPal account, then I might dispute the chargeback. Otherwise I wouldn't waste the effort.

  6. #6
    Join Date
    Jul 2006
    Posts
    1,078
    We have logs of:

    Signup Dates
    Email of confirmation of Payment
    Emails with account information (hosting)
    IP Addresses
    Given Details
    Transaction dates and times

  7. #7
    Join Date
    Aug 2005
    Location
    Seattle, WA
    Posts
    1,167
    It doesn't hurt to dispute it, but don't fight it too hard - all you'll do is piss PayPal off.

  8. #8
    well dont use paypal in the first place is my advice to many problems but id just pay the charge and leave it there. How can you prove the account was being used for fraud? just because there are no files in it doesnt say the person wont ever use it.

  9. #9
    If it was fraud, then what is the point to dispute it? You will not win, because it was fraud.
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  10. #10
    Join Date
    Jun 2004
    Location
    Nottingham
    Posts
    553
    We all know paypal loves fraudsters, Because they whouldnt make money otherwise, Disputes here and there make innocent people pay. A get rich scheme fast! hehe

  11. #11
    Join Date
    Mar 2003
    Location
    Spokane, WA
    Posts
    262
    Unless you have lots of evidence and actual evidence the person used your services I wouldn't bother. PayPal isn't exactly known for reading what the business has to say.

  12. #12
    This happens always. Unfortunately, the most you could do is provide the client's registration details, ip, countries, etc and let them handle. Usually Paypal will just close and refund the money back to CC and if you are unlucky, you'd get the chargeback.

    Try always filter any order and refund any suspicious one quickly.
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  13. #13
    I'd dispute it, but I wouldn't go to far with it... just keep disputing until it causes inconveniences.

  14. #14
    Join Date
    Oct 2006
    Location
    Milton Keynes - UK
    Posts
    10

  15. #15
    first you have to filter the orders you get. then everything will be smooth

  16. #16
    Join Date
    Jul 2006
    Posts
    1,078
    Ok so id get the chargeback

    My one good point is

    The money is still in PayPal and they have held it and its not causing me any Debt as im still in a positive Balance

  17. #17
    Join Date
    Jan 2006
    Location
    Ontario, Canada
    Posts
    958
    Quote Originally Posted by getpro
    Try disputing it, however PayPal wont protect you over non-physical goods
    Not true! I've had great experience with paypal in this ragard. About 5 months ago I recieved a chargeback from a client who purchased a domain thru paypal. I was notified about a month later of a chargeback for the hosting account & domain that they had purchased. I opened a dispute and included all evidence in my favor. Although the dispute took months to close, the dispute ended in my favor and go the money back.

    Dear Intec Networks Hosting Solutions,

    We are pleased to inform you that we have successfully disputed chargeback
    case #PP-xxx-xxx-xxx. The buyer's card issuer has decided in your favor
    and within seven days you will receive reimbursement for $xx.xx USD.



    It is PayPal's standard practice to dispute wrongful chargebacks. One of
    the benefits of using PayPal is that our team of chargeback specialists
    will gather the necessary information from you and work with the credit
    card company until the chargeback is resolved.

    We appreciate your prompt response to our request for information about
    this transaction.


    -----------------------------------
    Transaction Details
    -----------------------------------

    Buyer's Name:xxxxxx
    Buyer's Email: xxxxxxxxxxxxxxxx
    Transaction Date:xxx xx, xxxx
    Your Transaction ID: xxxxxxxxxxxxxxx
    Buyer's Transaction ID: xxxxxxxxxxxxxxxxxx
    Transaction Amount:-$xx.xx USDCase #P-xxx-xxx-xxx

    -----------------------------------
    What to Do Next
    -----------------------------------

    This case is now closed. No further action is required of you.

    Thank you for your patience and cooperation in helping us resolve this
    matter as quickly as possible. We appreciate your business and regret that
    you experienced a chargeback.


    For an overview of how PayPal works with you to investigate chargebacks,
    log in to your account, click the Resolution Center tab, and then click the
    Resolution Center Tutorials link.

    Sincerely,
    PayPal
    Chargeback Department

    Please do not reply to this email. This mailbox is not monitored and you
    will not receive a response. For assistance, log in to your PayPal account
    and click the Help link located in the top right corner of any page. If
    your inquiry is regarding a claim, log in to your PayPal account and go to
    the Resolution Center.

    CBP-xxx-xxx-xxx:xx:USDxx.xx:xxxxxxxx:xxxxxxxxxxxxxxxxxxx

    PayPal Email ID PPxxx
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  18. #18
    Join Date
    Jul 2006
    Posts
    1,078
    Ahh so there is a good outlook for some

    Well ill let you guys know how i get on

  19. #19
    Ive had to fight a chargeback one time with paypal out of the 5? or so years I have used it. Just be nice with them, and submit all of your evidence, and you should be fine. Recover whatever you can, it is better than nothing.

  20. #20
    Join Date
    Mar 2002
    Location
    Posts
    785
    Do you confirm the email addresses of your customers?

    When we first started we got alot of chargebacks from unused accounts, we later figured out that the reason they were unused was because the customer never got his login info because of lost email, spam filters etc...

    Since then we authorize-only the card, then we send customer and email with a verification link, which activates the account and finalises the card charges.
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