posted on August 23, 2001 04:29:50 PM new
Hi, I have a customer who wanted to return a product outside of the warranty period. I advised him that he couldnt return it because it was out of warranty.
Next thing I know he files a complaint with paypal.
How does this process work? I mean he received the product and had 30 days to return if defective. He didnt return it, so how can he do this?
If paypal rules against me what happends?
Do they withdraw funds from my paypal account or can they withdraw funds directly from my bank account?
Im a little upset to the fact that this guy is doing this and I have no experiance in this situation.
If anyone has any advice, opinions or something to make me feel better please write.
posted on August 27, 2001 08:36:34 PM new
As long as you shipped the product to a confirmed address and retain the tracking number, PayPal will not reverse the transaction. PayPal waits to see if the seller can provide shipping information and they will not honor the chargeback / claim from the buyer.
posted on August 28, 2001 07:10:45 PM newAs long as you shipped the product to a confirmed address and retain the tracking number, PayPal will not reverse the transaction.
Not true. But a good demonstration of how PayPal's marketing has thoroughly misled their customers. And nice to see PayPal letting you post that, without correcting you.
posted on August 29, 2001 12:03:37 PM new
For further clarification for Loggia
Seller Protection Policy. PayPal agrees to indemnify sellers of physical goods for chargeback liability resulting from a buyer's unauthorized use of a credit card and/or false claims of non-shipment of goods, for payments received by the seller through PayPal of up to $5,000 per year, if the following conditions are met:
1. The seller is a Verified Business or Verified Premier Account (U.S.).
2. The seller ships to the buyer's Confirmed Address.
3. The seller can provide reasonable proof-of-shipment which can be tracked online. This documentation must show that you shipped to the Confirmed Address. (Most U.S. carrier companies offer this service, including the U.S. Postal Service.) Because comparable proof-of-shipment is not currently available for electronically-delivered items, we are currently unable to offer Seller Protection for digital goods and other electronically-delivered items.
4. The seller accepted a single payment from only one PayPal account for the purchase. (Multiple payments from different accounts for a single item are a fraud indicator. Sellers should not accept such payments.)
The seller ships to a domestic (U.S.) buyer at a U.S. address.
5. The seller cooperates in resolving disputes by responding in the following time periods: When a complaint occurs, the seller must provide complete information within 7 days of a request from PayPal. However, if PayPal is required by the credit card association to respond immediately to resolve a chargeback, sellers must provide the information within 3 days. PayPal will indicate the response time required in the e-mail message sent to the seller.
posted on August 29, 2001 12:53:49 PM new
For further clarification:
Notice that the above listed policy does not cover the issue of "a customer who wanted to return a product," also known as a "quality of item" chargeback.
[ edited by Retired2late on Aug 29, 2001 12:57 PM ]
posted on August 29, 2001 01:47:28 PM new
Was the PayPal payment funded by the customer's credit card? Or was the source of funds the customer's checking account or PayPal balance?
If it was credit card, you may well be stuck if your customer elects to dispute the charge.
Don't expect PayPal to fight a chargeback on your behalf. (The seller protection policy does not cover "quality of merchandise" claims made via the credit card company and the TOS leaves PayPal room to stop covering sellers in this area for any type of payment... if it chooses to do so.)
If it was an e-check or PayPal balance payment, you'd have a shot a winning because PayPal's buyer protection doesn't cover quality of merchandise disputes, either.
posted on August 29, 2001 02:13:25 PM new
Optionqb1,
You wrote: "As long as you shipped the product to a confirmed address and retain the tracking number, PayPal will not reverse the transaction."
This is not true, but I am not surprised that you feel it is. PayPal has spent a long time convincing its customers this is the case.
Recently even Damon admitted it is not. Look at part of what you posted from their TOU:
PayPal agrees to indemnify sellers of physical goods for chargeback liability resulting from a buyer's unauthorized use of a credit card and/or false claims of non-shipment of goods
There are big loopholes there and apparently PayPal is using them, much to the astonishment of many longtime PayPal users. One such loophole that came to light recently is that if a buyer wins a "quality of merchandise" chargeback, you will have your transaction reversed.
posted on August 29, 2001 02:38:27 PM new
Credit card fraud is the most signficant threat facing an internet seller who takes payment from credit card.
PayPal protects PayPal sellers who follow the rules from nearly all such fraud. No exceptions have ever been reported, so whatever loophole might exist isn't very big.
What PayPal does not protect sellers from are situations where buyer returns the merchandise and disputes the charge with a credit card company due to disappointment in the quality of the merchandise. It doesn't take a really brilliant analysis to see why no payment system could plausibly "protect" such sellers.
It also doesn't take a really brilliant analysis to see that no seller running an ethical business is likely to ever encounter such a chargeback. A totally effective defense to such a chargeback is showing that the charge was refunded.
posted on August 30, 2001 06:27:48 AM new
No, I think Roofguy is just interpreting the Paypal line. Sellers are protected from charge backs as long as:
- no charge back is made or
- the seller refunds the payment
