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  1. #1

    PayPal Chargeback Question.

    Hello,

    A client renewed his domain by PayPal on October 2006. He paid twice so I thought he renewed his domain for two years. However without any communication, I received his chargeback for the second payment on Jan 4, 2007. I sent him two emails asking him to cancel the chargeback but he did not reply. I have some questions:

    1. Will I charge any amount if I choose "accept liability" in the Resolution Center?

    2. Is it possible that I cancel his payment at this moment?

    3. What is the best way to settle this issue?

    Best regards

  2. #2
    Join Date
    Jan 2005
    Location
    San Jose, CA
    Posts
    255
    I think if you "accept liability" you will be out the full amount of the charge, plus the chargeback fee. (That's assuming you received a "chargeback" for a credit card payment, and were charged a separate chargeback fee when it occurred.) Your net loss would then probably be the chargeback fee + the original transaction fee (not sure, but I think the transaction fee would not get refunded to you in this situation).

    If it's a chargeback that the customer filed with the credit card company, I don't think you can "cancel" the payment. There may be a "refund" option within the Resolution Center.

    You should try to call PayPal Customer Service to get accurate information on what your options are, how much you will be charged, and whether there's any option for having the customer reverse the chargeback.
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  3. #3
    Join Date
    Oct 2004
    Location
    Oneida, NY
    Posts
    2,842
    Chargeback fee is $10-30 depending on the bank.

    However, if you contest the chargeback, you'll still be out the original transaction fee, but PayPal will waive the chargeback fee
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  4. #4
    Hello,

    Thanks for your information. This is really useful. I sent emails to PayPal two days ago but still waiting for their response.

    Yes this is a "chargeback" for a credit card payment.

    I just got reply from my customer. He indicated that the PayPal transaction was shown fail for the first payment. That's why he paid twice. However PayPal still charge the payment. Therefore the credit card company asked for the chargeback.

    I asked my customer to cancel the chargeback on his side. I wonder if he can do that.

    I noticed that the Chargeback Fee is shown under the Chargeback Details in the Resolution Center:
    PayPal Case ID: PP-xxx-xxx-xxx
    Reason for Dispute: Merchandise
    Chargeback Amount: $xx.xx USD
    Chargeback Date: Jan. 4, 2007
    Status: Waiting For Seller's Response
    Status Details: A chargeback has been filed against this transaction..........


    I have some questions:

    I have the following options to resolve this issue:
    a. Provide proof that I already issued a refund to the buyer
    b. Provide evidence for dispute
    c. Accept liability

    1. It seems that Accept liability is the worst on my side.

    2. I would like to use Option a however I do not any proof of that. Can I negotiate this with my customer?

    3. I don't understand Option b. Could you please explain this?

    Thanks and best regards

  5. #5
    Join Date
    Dec 2004
    Location
    San Francisco Bay Area
    Posts
    213
    Option b. is for sellers that deliver physical goods and have proof that the goods were received.

    You can ask the customer to cancel the chargeback and he can do that but then he gives up his rights for a refund based on a promise by you. Seems unlikely.
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  6. #6
    Join Date
    Dec 2004
    Location
    San Francisco Bay Area
    Posts
    213
    Sorry posted twice by accident
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  7. #7
    Join Date
    Aug 2005
    Location
    Seattle, WA
    Posts
    1,167
    He really issued a chargeback for a two figure amount?

    People like that shouldn't have a credit card. I'd refund his PayPal account manually and try for option 1. That way, you won't have to deal with chargeback fees and just chalk whatever you lost from the registration up to a learning experience.

  8. #8
    Hello all,

    Thanks for your help. Actually he paid two times, each chargeback fee is $9.39 so the total chargeback is $18.78.

    He sent me an email yesterday and suggest to renew his domains for another two years. I asked him to cancel the chargeback on his side. Now I am still waiting for his final confirmation.

    Since the chargeback initiated on Jan 4, 2007, I am afraid that the resolution period will be expired. Therefore I tried to select Option a (Provide proof that I already issued a refund to the buyer). However the buyer do not have a PayPal account so I select "issue refund other than PayPal". But PayPal require me to print the fax cover sheet to submit the details of my refund.

    What I can do now is to ask the buyer to confirm that he use the payment to renew the domain for two years so that I can fax the email content to PayPal.

    Thanks and best regards

  9. #9
    It seems that the best way proactive way to avoid chargebacks is to use a company that guarantees against them/assumes the risk on charges it approves. Have you looked into Paily?

  10. #10
    Chargeback it is ingeniously... I think that your customers know nothing about refund or something like that. I suggest you make refund and mnothing more.

  11. #11
    Join Date
    Feb 2001
    Location
    West Michigan, USA
    Posts
    9,675
    Quote Originally Posted by larryjkd
    It seems that the best way proactive way to avoid chargebacks is to use a company that guarantees against them/assumes the risk on charges it approves. Have you looked into Paily?
    You'll never find a company that will blindly eat chargebacks. If you do, it will probably cost more to use them than to just take the risk of a chargeback.

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  12. #12
    Paypal will give you 10 days for you to respond those chargebacks. This time frame will give Paypal the chance to put together a good case to present to your customer's credit card company for a final desition.

    If you believe your customer made a mistake by paying twice then I wouldn't Accept Liablity but would Click to Resolve your issue (button located next to the charges on your Paypal account main page). Read what your customer had to say about the double charge, then use his own words (He indicated that the PayPal transaction was shown fail for the first payment) to reply the dispute. Tell Paypal you don't feel you should pay charbacks fees because Paypal's website "failed" when your customer made the payment twice, tell them your customer never contacted you to resolve this issue and that you have copies of both of you sent/recieved emails trying to resolve the problem after his claim. Of course you will also tell them you don't have any problem to issue one refund and keep the other amount to pay for your customer subscription or a full refund and cancel your customer account.

    Lastly, you can ask for forgiveness on "your customer behalf" for the double charge caused by Paypal's website failure. Most credit card dispute centers will accept these type of website errors as a good reason to resolve the issue in the merchant's favor.

    After replying the dispute "in writing" then you want to go to paypal's website/help/contact by phone and give them a call. Most calls made from a cell phone within USA are free of long distance charge so why not call them instead of waiting for their email reply?

    Good luck,
    Let us know how everything went ok?

    Bongosmania

  13. #13
    Join Date
    Sep 2004
    Location
    Chicago
    Posts
    843
    Paypal can be a very big frustration at times , but as Bongosmania said. Document everything and they will work with you to resolve the issue.

    Usually if you issue a refund by clicking details of the transaction and then select issue a refund there will be no chargeback fee incurred. Also you mentioned he did not have a paypal account but issuing a refund in this manner should essentially refund /credit his CC with the appropriate dollar amount.
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