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?
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.
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?
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.
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.
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?
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.