"Buyer Dispute" PayPal - Advice?

24 replies
I just noticed a buyer dispute in my PayPal account. This is the first time this has happened. I didn't receive a request for a refund or I would have gladly provided it.

How do you address this? Will this 'block' my PayPal account?

Thanks!

Scott
#advice #buyer dispute #paypal
  • Profile picture of the author baumann93
    No, just respond to the dispute and do a full refund. You will be fine.
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    • Profile picture of the author Neil Morgan
      These don't always lead to a refund.

      Often the customer just didn't receive your order confirmation email with download links etc.

      See if you can resolve it first. If not, refund.

      Cheers,

      Neil
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      • Profile picture of the author mymarketingsecret
        Originally Posted by Neil Morgan View Post

        These don't always lead to a refund.

        Often the customer just didn't receive your order confirmation email with download links etc.

        See if you can resolve it first. If not, refund.

        Cheers,

        Neil

        i agree try to solve before giving a discount. Some people just don't have patience and are quick to jump to the wrong conclusions.
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    • Profile picture of the author Scott Million
      Originally Posted by baumann93 View Post

      No, just respond to the dispute and do a full refund. You will be fine.
      Big Thanks! I was afraid they'd freeze my account (heard horror stories)

      I'd rather just give them their money back and not escalate the issue. I'm a big supporter of honoring refund requests with "no hassle".

      Scott
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      • Profile picture of the author baumann93
        Originally Posted by Scott Million View Post

        Big Thanks! I was afraid they'd freeze my account (heard horror stories)

        I'd rather just give them their money back and not escalate the issue. I'm a big supporter of honoring refund requests with "no hassle".

        Scott
        I've already had at least 5 disputes with refund requests for digital products. Respond promptly and your account would not be affected. I've heard that paypal tracks the ratio of sales/disputes and may "advise" you not to continue using paypal to sell the product in question.,
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    • Profile picture of the author Angela V. Edwards
      Originally Posted by baumann93 View Post

      No, just respond to the dispute and do a full refund. You will be fine.
      Yep, exactly. If you do a full refund right away, this will resolve the dispute. I had one situation once, though, where the person couldn't accept any payments, so I had to call Paypal to resolve it. But this usually doesn't happen and a full refund takes care of it right away.
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  • Profile picture of the author Ryan Even
    You don't need to worry. This happens sometimes.

    Just issue a full refund within the PayPal dispute panel.

    Ryan
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    • Profile picture of the author blackjack
      Scott

      As everyone else wrote, just check the dispute details then issue refund if needed. Depending on the dispute, sometime Paypal take out the amount from your account and hold it in thier account till dispute is resolved then Paypal will pay the winning party. But this takes few weeks. I had this problem recently. One of my buyer rather than emailing me for refund or saying problem with the order but raised dispute with Paypal. Paypal took the money out of account and then followed their process to resolve the issue and it took 4 weeks before buyer got the money back. If buyer had emailed me then I would have given the refund straightway.

      Thanks
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  • Profile picture of the author Dan Ambrose
    Hi Scott,

    Some people eh?

    Why won't they just contact you first??

    Anyway, all you need to do is address the dispute. When Paypal see that you are more than willing to sort this out, they won't close your account. They must get disputes coming in left right and center (hence the part of their site focused on disputes) and won't just block your account just because you received one.

    Good luck with it
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  • Profile picture of the author Louis Raven
    Don't just offer a refund!

    You're a business man right?

    See what their problem is and address it and do what ever you can within your refund policy to keep the money.

    Louis
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  • Profile picture of the author Scott Million
    Thanks guys, sounds like as long as I do swift resolution I won't hit any issues. It's just the horror stories I've heard about frozen accounts that makes me not even want to deal with it.
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    • Profile picture of the author Neil Morgan
      The whole PayPal 'dispute' thing is in place to try to help both parties agree on a resolution.

      Otherwise they would just refund immediately.

      Like ClickBank does.

      Cheers,

      Neil
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      Easy email marketing automation without moving your lists.

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  • Profile picture of the author thatgirlJ
    Yeah, some people use it as the first line of communication. You'll be fine though Just respond to it ASAP and get rid of the person
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  • Profile picture of the author Emailrevealer
    I'd contact the person directly and see what the beef is about. They could have made a mustake or maybe they have been emailing you and its in your spam folder. You may have other people that can't trach you also.
    Why not find out whats wrong? Maybe the guy is just a jerk.
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  • Profile picture of the author Avery Berman
    The same thing has happened to me Jeff. Every time I launch a WSO I will get a good percentage of people who say "Opps... um... unauthorized use!"

    Every attempt to contact the person gets no contact, so the only solution is to refund.

    Can be quite annoying, but it's not the end of the world. The person who got the information for free is probably so cheap they won't use it anyway.
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  • Profile picture of the author Lynn Stivers
    I've had a couple of people file a dispute with PayPal because they didn't get the download link. They were supposed to have been forwarded to the download page but either they closed the window out too soon or something went wrong.

    I responded to them through PayPal's console. I told them that PayPal had forwarded their message to me about the problem and since emails don't always get delivered properly I thanked them for letting PayPal know about it so I could help them.

    Then I gave them a link to their own personal download page - it was personalized with their name in the page extension and on the page itself. All I did was create a duplicate of the download page - add their name to the message at the top and save it with their name in the extension (DownloadForName.html)

    I ended each message telling them that if they had any more problems or any questions about anything to just let me know. One person had a few questions and I answered them all.

    Both times I was thanked by very happy customers - they seemed to be very impressed by the personal service I gave them. It just took a couple of minutes for me to put their name on an already existing page and upload it but it made them feel special.

    I was also understanding with them because it's frustrating when something doesn't work right and you're thinking you may have been taken advantage of.

    I was prepared to give them a full refund if they still wanted it but they had only asked for a refund because they had not received the download link so they were happy and I never had to refund anything.


    Lynn
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  • Profile picture of the author Ken Leatherman
    Lynn,

    A great reminder to all Warriors that it doesn't hurt to make your customers feel they are something else rather than a $$ sign.

    I'm not naive enough to think some people are going to try a scam. But I have found the percentage to be very low. I have had one dispute filed against me in the 7 months. This out of 100's of transactions.

    What I found out is the problem was my fault. I had missed the PayPal notification of payment. His e-mails had ended up in the junk folder when he tried to contact me. So I compounded the problem in his view. You know what I agree with him. So I refunded immediately, learned my lesson and put the knowledge to work for me.

    Sometimes it does make a lot of sense to go the extra mile.

    Ken Leatherman
    The Old Geezer
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  • Profile picture of the author X
    Scott -

    My experience with PayPal is that if you
    communicate with them and respond
    promptly, you will not have problems -
    I have never had a problem with PayPal
    freezing funds and I've moved a lot of
    money through them.

    A dispute does not mean you must give
    a refund - giving a refund automatically
    resolves the dispute. However, more
    often than not, disputes are filed by
    scammers - they'd rather go to PayPal
    than you. {not saying that's the case
    here - I don't know - and of course some
    disputes are legit - you learn to recognize
    the difference after a while}

    You handle your business as you see
    fit - but know that PayPal will NOT
    automatically ban your account because
    someone files a dispute - and you are
    NOT required to issue a refund. A
    dispute enables both parties to work
    out a compromise. If a compromise is
    not reached, PayPal will make a ruling -
    if they decide in customer's favor, they
    get their money back and I think you'll
    be hit with a chargeback fee just like
    any merchant account.

    In at least 65% of my dispute cases
    that were not resolved with a refund,
    PayPal has found in my favor - 65% is
    probably low.

    X
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    • Profile picture of the author Scott Million
      Thanks for the advice. Yeah, you guys were all right. I refunded it and then I got an email saying, "I didn't want a refund, just the product!"

      Guess the download link didn't work for some reason.

      Anyway, I told him no worries and made a special page for him to re-order.

      This time he went with the OTO.

      Amazing...

      Originally Posted by X View Post

      Scott -

      My experience with PayPal is that if you
      communicate with them and respond
      promptly, you will not have problems -
      I have never had a problem with PayPal
      freezing funds and I've moved a lot of
      money through them.

      A dispute does not mean you must give
      a refund - giving a refund automatically
      resolves the dispute. However, more
      often than not, disputes are filed by
      scammers - they'd rather go to PayPal
      than you. {not saying that's the case
      here - I don't know - and of course some
      disputes are legit - you learn to recognize
      the difference after a while}

      You handle your business as you see
      fit - but know that PayPal will NOT
      automatically ban your account because
      someone files a dispute - and you are
      NOT required to issue a refund. A
      dispute enables both parties to work
      out a compromise. If a compromise is
      not reached, PayPal will make a ruling -
      if they decide in customer's favor, they
      get their money back and I think you'll
      be hit with a chargeback fee just like
      any merchant account.

      In at least 65% of my dispute cases
      that were not resolved with a refund,
      PayPal has found in my favor - 65% is
      probably low.

      X
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    • Profile picture of the author Chris Lockwood
      Originally Posted by X View Post

      A
      dispute enables both parties to work
      out a compromise. If a compromise is
      not reached, PayPal will make a ruling -
      if they decide in customer's favor, they
      get their money back and I think you'll
      be hit with a chargeback fee just like
      any merchant account.
      I have to correct this. PayPal does NOT make rulings on disputes. They don't do anything until either party escalates it to a claim. If nobody escalates, the dispute expires after a fixed period of days, without PayPal ever making a decision on it.

      If it does get escalated, and PayPal decides in favor of the buyer, there is still no chargeback fee. A chargeback comes from the credit card company and has nothing to do with disputes.

      I don't know why people are advising to issue a refund for a dispute, since it will expire on its own. A dispute is often just that they didn't get the product, so send it to them, and note that in the dispute.
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  • Profile picture of the author Lynn Stivers
    Chris,

    Thanks for that extra clarification. It's nice to know what happens (or doesn't happen) if things were to go that far.


    Lynn
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    • Profile picture of the author Rudy Dhondt
      This happened to me three times now.

      Paypal asks the seller to take action while the buyer is the one who should clarify or
      take the required action.

      I had this twice with products I sell using e-junkie. E-junkie provides enough tracking proof, download reports etc... to back up the fact that the customer did have access to the download.

      Yet Paypal almost always acts in favour of the buyer. The buyer tells Paypal that they did not receive the product/service they paid for. I provide sufficient proof with screen shots and
      still Paypal 'solves' the problem by asking to issue a refund to the buyer.

      That makes us, the merchant, 'victim' of the whole situation. The buyer gets the refund and owns the product for free.

      Note that I do act quickly upon requests from customers who didn't get access to the product. I will never hesitate to help my customers. But I will not tolerate that they take advantage of me...
      luckily enough that number is very low...
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  • Profile picture of the author TheRealDomainer
    paypal has protection for goods you can ship.

    One problem with humans is that there is always a Judas in this business.
    Even if you do solve the problem or not, there are those who are on the prawl with mind already crossed to purchase a product, download it and raise dispute and get refund. This is scam...

    When you are doing Internet Marketing, you must have these set of people considered so you wont have much problem with your paypal account.

    They go straight to raise dispute that they did not order such product and since paypal has zero protection for digital products, you will need to resolve this otherwise, your account could be frozen.

    What you do here: Do not hessitate to make refund, send email to your client if there is an issue, make full refund, use the refund botton in your paypal account.

    In case of your account being limited for such reasons, you should make sure you resolve it timely and it will be restored.

    Henry
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