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Paypal Payment Reversal What to do ?

by JimRiley
7 replies
I sell digital products online.

Every other day, Paypal opens a case for review and reverses the payment to the buyers.

When the first time, I received this type of email, I send all the details to Paypal with Transaction details and the proof that the file is accessed by the buyer. But still they reversed the payment to the buyer.

I keep getting atleast 1 reversal email every other day, Can you guys tell me, whats the proper solution to do, when I receive this type of emails.

Also, atfirst I thought the Case is brought out by the buyers who might not have liked the product, but actually when I read it thoroughly I came to know that the case is actually been opened by Paypal for investigation.

How do I respond to this type of investigation cases.

Images Attached:
Pending Case 1:


Pending Case 2:
#payment #paypal #reversal
  • Profile picture of the author BIG Mike
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    • Profile picture of the author JimRiley
      Thanks for the reply Mike,

      When I ask the buyers of the product to contact Paypal, do they need to use the same Contact Form or do you know some email, where I can ask the buyers to email directly to Paypal.

      I have followed the approach of asking the buyers to Contact Paypal using the Contact Us Paypal Option, but buyers usually aren't interested once they receive the digital item. They dont want to Login to Paypal, search for Contact Button, choose Topic and Subtopic and then send the message to Paypal.

      Let me know, if you know, somekind of email where the buyers can email directly to Paypal mentioning the Case id directly. That can make things a little simple.



      Originally Posted by BIG Mike View Post

      You need to respond to PayPal, giving them any pertinent details, i.e.; what they bought, where the download email was sent, was it downloaded and from what IP Address, etc.

      You're getting these because they represent unusual buying activity on the buyer's part, triggering PayPal's anti-fraud filters. It may be nothing more than the buyer was at a geographically different IP than normal, maybe went on a buying spree or was actually the victim of a stolen credit card or hacked account.

      I find it often helps to contact the buyer directly and attempt to get them to contact PayPal - that usually resolves it quickly.

      If in fact it was fraud, PayPal will return the funds to the buyer, which is appropriate.
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  • Profile picture of the author monkseo
    It looks like someone is purchasing from you with another persons account and paypal is reversing the charge, like a scammer just going through a list of accounts to see which one sticks. I would recommend calling them and emailing them if it is after hours. They are usually pretty good at handling strange circumstances that come up.
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  • Profile picture of the author HBurner
    In these types of cases the best option is to call them. It might be happening if some buyer has unverified account, or got his account hacked.
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  • Profile picture of the author Matthew Barnett
    It does my nut in when Paypal do this to me. Thankfully it doesn't happen too much anymore, but I did get a load of these when I first started.

    One other thought - is your paypal fully verified with proof of address etc submitted to paypal? If you've not made it fully clear to paypal that you are legit, it may be that they have a different set of filters they use.

    Another option that has worked for me in the past (after the buyer and myself both contacted paypal to say the transaction was ok, but paypal still refunded it anyway) is to contact the buyer and just ask them if they would like to attempt the purchase again. You might be surprised but some people will say 'yes, sure, I know I owe you the money...'
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    • Profile picture of the author Centurian
      Another option is to get rid of PayPal.

      The myth of needing PayPal is not supported by the facts.

      Even PayPal's surveys only claim that 23% of buyers prefer PayPal.

      Does 23% preference make it a good idea to give PayPal 100% of your money.

      It's your money. Your money belongs in your bank. Don't let PayPal "keep" it for you.
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      • Profile picture of the author CDarklock
        Originally Posted by Centurian View Post

        The myth of needing PayPal is not supported by the facts.

        Even PayPal's surveys only claim that 23% of buyers prefer PayPal.
        However, those who do prefer PayPal are the ones making smaller purchases. So if you sell $2 and $5 and $10 products, you're working with those people.

        Get much over $500, however, and you're in "real merchant account" territory. If you do any appreciable volume at that price point, it's time to start migrating away from PayPal.
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        "The Golden Town is the Golden Town no longer. They have sold their pillars for brass and their temples for money, they have made coins out of their golden doors. It is become a dark town full of trouble, there is no ease in its streets, beauty has left it and the old songs are gone." - Lord Dunsany, The Messengers
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  • Profile picture of the author Robert Michael
    You need to call paypal and explain the situation(s)

    Let them know the products are digital, and the buyer received the download after paying.

    When this happens to me, they close it in my favor immediately as I'm on the phone with them.

    Some buyers are just out to scam you.. And paypal KNOWS this. So dont take that. Fight back. Like I said, CALL PAYPAL.

    You don't need the buyer to contact them. And chances are, once they have your product and filed the dispute, they think they are "home free" so they arent even going to reply to you.

    But people need to start understanding that paypal does not offer protection for digital products. If you can prove they got what they paid for, they don't get to keep the money & the product. Paypal will side with you every single time (again, as long as you can prove that they got what they purchased)
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