Paypal Charge Back Issue

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An ebay buyer opened a charge back claim on her credit card provider for an item that she bought from me from eBay and was delivered to her. The Australia Post tracking clearly shows that the item was delivered - the buyer even collected it from the post office as she was not at home during the first delivery attempt.

The buyer's reason was that the transaction was fraudulent as someone else used her credit card to purchase from eBay and pay through Paypal.

Now Paypal put my account on a negative balance because of this.

How is this fair? Isn't this a security issue between Paypal and the credit card company? I just sold the item. I called Paypal and the CSR I talked to told me they're defending the case on my behalf. My point is that the reason is a fraudulent transaction. I thought Paypal is supposed to be secure?

Has the decision been finalised yet?

I’m guessing not, so the negative balance will only be temporary.

Once you have uploaded proof of postage / delivery (as long as it matches the address that accompanies the PP payment), call PayPal and ask them to release your funds.

PS just for future reference you don’t even need proof of delivery for a chargeback, just proof of postage.

No not yet. Paypal said the decision lies on the credit card provider.

Have you actually spoken to someone from PayPal on the phone?

As I advised long as your proof of delivery / postage has been uploaded in the resolution centre against the dispute, they will release your funds. If you don’t Chase them it will take a while but if you call them they will do it straight away.

Your contract is with PayPal, not the credit card company - By providing the proof of postage you have met the conditions to maintain your seller protection so they must release your funds.

Yes I have talked to Paypal on the phone. And that's what I was told - they will send the proof of delivery to the credit card company and I have to wait until the credit card company makes a decision. I was very very surprised with this. It seems the seller has no protection at all, eventhough if it was a breach of security, then the issue is between Paypal and the cc!

That’s nonsense. Call them back again and remind them that you have met the conditions to maintain your seller protection and push them to refund you!
Chances are you just spoke to someone who didn’t really know what they were talking about.

I get about one of these claims a month so I’m used to dealing with them and know how they work.

I called Paypal twice and basically have been told that there was nothing they could do. One agent even said "we are not a charity so we can't pay for the chargeback."

Anyway I sent a message and basically said I did all my responsibilities as a seller, my contract is with Paypal and not with the card provider, and holding my funds is clearly inconsistent with the Paypal seller protection.

They released my funds but "please note we are still investigating the chargeback claim etc" so I don't know if they will hold it again.

I think it's really cheap of Paypal to offer a "secure" platform of transaction then trying to pass off the charge to the seller when charge backs for unauthorised transactions (which are clearly an issue between the card provider and Paypal) are made.

Hi OP - Thanks for the update and I’m glad they released your funds. I’m very confused as to the fact you had to hassle them to get it sorted though, I’ve never had any similar problems.

19lottie82

Actually I am very confused too. This is my first dispute ever and I was actually so surprised that Paypal would even try to make the seller suffer for a charge back due to fraudulent transaction. But reading through a thread in an Australian forum, it seems that it's common here.