Has This Happened To You - Beware Charge back Fee !

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.