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Thread: PayPal claim resolution
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01-14-2009, 02:45 PM #1Web Hosting Evangelist
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Hi,
A dispute recently appreared in my PayPal account from a customer who didn't read the TOS on sign up, I'll not go into all the details etc. However, I replied to the dispute and esculated it to a claim as I knew it wasn't going to go anywhere otherwise. Under the claims status it states the following; 'We'll contact you with any developments or if we require additional information from you by 27 Jan. 2009.'
The dispute was started on the tenth, is that a long time to wait? In the past, I've never had to wait that long for PayPal to review a claim - it had always been sorted within a few hours.
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01-14-2009, 02:55 PM #2Web Hosting Guru
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If your are selling services, PayPal will refund your clients money.
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01-14-2009, 03:02 PM #3Newbie
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It is more then likely that the will refund your client. I had the same thing happen to me. That’s not too long. They sometimes take long sometimes quick depends how many disputes they get and how hard your case is to resolve. help this helps.
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01-14-2009, 03:08 PM #4Corporate Member
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It will certainly take less. I can confirm that Paypal will side with the buyer when it comes to services. Paypal doesn't care that it takes time, effort, and money to setup a service.
Regards
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01-14-2009, 03:13 PM #5Web Hosting Evangelist
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If the client gets their money back, then I will be very annoyed. It's their fault for not reading the TOS, it's clearly stated and they must agree to it before they can signup.
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01-14-2009, 03:14 PM #6Web Hosting Guru
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11.4 What are the eligibility requirements for PayPal seller protection?
-The item must be a physical, tangible good that can be shipped.
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01-14-2009, 03:17 PM #7Web Hosting Guru
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If the client gets their money back, then I will be very annoyed. It's their fault for not reading the TOS, it's clearly stated and they must agree to it before they can signup.
Yes but PayPal does not care about you or anyone that provides services TOS.. Seller's have no protection, If a client pays by credit card the can also do a chargeback.
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01-14-2009, 06:51 PM #8Newbie
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Here is how a dispute works. The customer puts in a dispute, whether it be no delivery or not. You have 10 days to respond. If you do not you will be notified that you are in violation of their terms and will refund the money and give you a black mark. So here is your option. You refund the money automatically and don't send the product. You can also wait the 10 days and ask the client to drop the dispute as he has 60 days to put in a dispute again if he wishes. If you have sent it and you put down on the form you have sent it, they will require to to prove it by tracking and a signature. If you do not provide the tracking number with signature you lose and he will get his money back. Now here is the kicker. You only have 2 days to send a product once it is ordered. If you send it after two days you will lose the case as that is their little rule that you don't know about till after they send you a decision on the dispute. So here is what I do. I would ask the customer to cancel the claim, if they do not within 10 days you then refund the money and accept the lose. This way you don't get in trouble with paypal as they will rule against unless the above conditions are met. You then can ask the customer to pay again if he accepts the package. In most cases the customer just want his money back and the product for free because he knows how the game is played on paypal and now you do as well. Remember, Paypal is not a bank and is lawless even though they operate in the USA they do what they want.
Rollguy
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01-14-2009, 07:05 PM #9relax, im a professional
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Is this related to a service or other non-tangible goods or actual tangible goods?
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01-14-2009, 07:54 PM #10Web Hosting Guru
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Unfortunately I am in the exact same situation and probably stand to loose money.
What is the safe alternative here? Is there any ways you can prevent getting 'screwed' by customers like this (different payment gateways, etc..)?
Or will this always be an issue?
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01-14-2009, 08:31 PM #11Web Hosting Guru
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Unfortunately I am in the exact same situation and probably stand to loose money.
What is the safe alternative here? Is there any ways you can prevent getting 'screwed' by customers like this (different payment gateways, etc..)?
Or will this always be an issue?
The best way would be western union, once the money is paid to the seller there is no going back.
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01-14-2009, 08:35 PM #12Disabled
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When you send a payment, there is an option of what its for. If a payment is sent for "Goods" then you are screwed if you cant provide shipping info. One way around this is to send a letter with tracking and then you have a tracking number to win the dispute with. If payment is sent for "Services" then my understanding is that the buyer cant get his money back and you win.