Has This Happened To You - Beware Charge back Fee !

4 replies
Ok so I have been using paypal for well over 10 years and this is something I was never aware off.

I got an email the other day to say that a dispute has been opened. This surprised me because I offer a no questions asked money back guarantee. I do this because my refund rate is extremely low.

Now if someone requests a refund they would normally email me but sometimes for whatever reason once or twice someone has gone straight for the paypal dispute so I thought that was it.

Having looked the reason for this within paypal I could see the person raised this with their bank because of an unauthorised charge, ok makes sense kinda.

Now paypal were waiting on a response from me. The thing is, what type of response do I give if someone's card has been used without their authorisation, what's that got to do with me, so I called paypal and discussed the matter in detail.

Paypal confirmed it was a charge back for 9.99 for the reasons above. They said although it was a digital product if I had proof of it being sent they would fight the charge.

I specifically asked paypal what would happen if I lost this. They said nothing, I dont have any history of charge backs or disputes, it would be fine.

Ok so I go through Warrior Payments and look for proof, there isn't really any so I decide it would be best if I just closed this out and authorised the refund, not worth the hassle.

Now today I get an email from paypal reminding me the case has been closed and they took a $20 fee WT?????

I get straight on the phone to paypal and ask them what this is all about, they say it is actually the card issuer that charges this fee, which is actually a lot more than $20 and paypal takes most of the hit.

Well this was never mentioned on my previous call when I asked about the consequences of losing the case. "Ok I will waive the fee and remove it from your account"

Personally if I seen an unauthorised charge I would contact the vendor first before raising it with my bank.

Has anyone else experienced this type of charge?

Going forward if this ever happens again I will contact the person direct and offer a refund.
#back #beware #charge #fee #happened
Avatar of Unregistered
  • Profile picture of the author dave_hermansen
    Every payment processing company that I know of has a chargeback fee in addition to the amount of the chargeback.

    If it's any consolation, even knowing there would be a chargeback fee, I wouldn't have dealt with disputing the charge. The time and hassle aren't worth $29.99 to me.
    Signature
    StoreCoach.com- Learn How to Dropship the Right Way - Buy & Sell Websites - Partner with Coach
    My PROVEN ecommerce process, as seen on: Fox News, the NY Times & Flippa
    {{ DiscussionBoard.errors[11436944].message }}
    • Profile picture of the author DaveMartin
      Originally Posted by dave_hermansen View Post

      Every payment processing company that I know of has a chargeback fee in addition to the amount of the chargeback.

      If it's any consolation, even knowing there would be a chargeback fee, I wouldn't have dealt with disputing the charge. The time and hassle aren't worth $29.99 to me.
      The thing is, if someone has an issue with unauthorised use on their card, lets say potentially it was stolen or they left it lying around, I don't know the exact circumstances, they could have even been neglectful but the card company go to paypal and paypal come to me and I think I don't need the hassle for $9.99 and I want to be a good guy so I will just settle it. Then bam I get charged $20 for something that has nothing really to do with me in the first place, that is completely messed up.
      {{ DiscussionBoard.errors[11436993].message }}
      • Profile picture of the author dave_hermansen
        Originally Posted by DaveMartin View Post

        The thing is, if someone has an issue with unauthorised use on their card, lets say potentially it was stolen or they left it lying around, I don't know the exact circumstances, they could have even been neglectful but the card company go to paypal and paypal come to me and I think I don't need the hassle for $9.99 and I want to be a good guy so I will just settle it. Then bam I get charged $20 for something that has nothing really to do with me in the first place, that is completely messed up.
        You're preaching to the choir here. In the end, you just have to chalk it up to being a cost of doing business and if it bothers you, go through the time and hassle of fighting it the next time it happens (and it will).
        Signature
        StoreCoach.com- Learn How to Dropship the Right Way - Buy & Sell Websites - Partner with Coach
        My PROVEN ecommerce process, as seen on: Fox News, the NY Times & Flippa
        {{ DiscussionBoard.errors[11437706].message }}
  • Profile picture of the author chuckholmes
    We sell about 500 items per month on eBay and deal with PayPal all the time. We do get disputes, just 1-2 month, because most people simply contact us first. I've only ever lost one dispute. Never been charged any other kind of fees. I don't like to waste my time deal with disputes on small transactions, but if they are over $50 I handle it. Sorry you had to go through that.
    {{ DiscussionBoard.errors[11437822].message }}
Avatar of Unregistered

Trending Topics