Is this a chargeback? What can I do?

11 replies
Maybe a dumb question, but I haven't had one of these before. Got a message from PayPal about unauthorized activity on a recent buyer's account.

I deliver my digital course with E-junkie, and the sale notification I got from them gave me affiliate information - which showed a different email than the buyer's - but I'm assuming the person also signed up at EJ as an affiliate with a different email and now is trying to get their money back plus earn the commission...?

What I don't understand is that neither email is listed among my affiliates at E-junkie's site. The other thing is that I manually pay my EJ affiliates monthly so of course I would not pay that person knowing what they've done. So of what benefit is a chargeback to this buyer?

I sent an email to the buyer asking what it was all about and that if they wanted a refund I would gladly supply one and all they had to do was ask. Haven't heard back and probably won't. I don't know if I should have sent it or not; I suppose it may hurt my chances of disputing this chargeback. But this is all new to me. So what should be my next step?
#affiliate #chargeback #dispute #paypal
  • Profile picture of the author GlobalTrader
    I would contact Paypal and ask them what is the best way to go forward. They could issue a refund under the chargeback but the chargeback charge is most likely going to be placed against your account. If you issue a refund, the cardholder's credit card could still issue it under the chargeback rules and you might end up having paid it twice so I would definitely talk or communicate with Paypal as to what actions you should take before doing anything.

    The scenario you speak of, i.e., the affiliate orders under a different email, then gets an affiliate commission and ultimately a chargeback refund and sometimes a 3rd bonus of a vendor trying to do right issuing still another refund, so tread carefully and do only what Paypal suggests.
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  • Profile picture of the author Laura B
    Thank you. I've done as you suggested and sent PayPal the proof of product delivery without issuing a refund. We'll see what happens.
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  • Profile picture of the author Laura B
    Still kind of wondering what this person was hoping to gain since I pay affiliates manually. What am I missing?
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  • Profile picture of the author GlobalTrader
    Most fraudsters are out to make a quick hit and do not bother to read the rules. In your case he/she assumed they would get a quick affiliate commission payment and maybe also get you to issue a refund while a chargeback refund was being processed which as I stated earlier could result in them getting paid three times.

    The other scenario is...they used a stolen credit card to order the item in the hope they could abscond with a quick commission payment which again, they do not care to read the rules and learn that you make payments manually.
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  • Profile picture of the author seasoned
    FIRST, talk to paypal! It might have truly been fraudulent, or they have problems. Sometimes THEY do the reversal, and the CUSTOMER is shocked ALSO!

    NEVER pay on a credit card charge, unless it has been several months. Either Use the processors refund facility, or simply void the charge. THAT way, you won't be out much, and they siply get their money back. If you pay them on another card, by check, etc.... YOU may be out the money, and they may get the payment in ADDITION to what they had!

    Steve
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  • Profile picture of the author MarketFriendly
    This happens often especially when you are selling anything on the internet.

    You will always have those freeloaders who will do a chargeback immediately after they have purchased your product. It's unfortunate but it does happen to the best of us.

    If it's a small product, I would just refund them.
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  • Profile picture of the author Sharon Hayes
    We rarely have issues with buyers on Paypal, but we had a case not long ago where the person had used Amex through Paypal, called Amex because they didn't recognize the charge, Amex initiated a claim with Paypal - even though the customer didn't ASK for it. It took a few months to get settled but eventually it did. We had received the same message you did when this all started.
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  • Profile picture of the author Laura B
    Thank you all for the additional info. I can see the sense in what GlobalTrader is saying - that the fraudster simply didn't read the rules of my affiliate program.

    I just heard from PayPal - they sided with the buyer, of course, and have reversed the payment. Is this a "mark" against me in PayPal's view, then?
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    • Profile picture of the author Guru4u
      Originally Posted by Laura B View Post

      Thank you all for the additional info. I can see the sense in what GlobalTrader is saying - that the fraudster simply didn't read the rules of my affiliate program.

      I just heard from PayPal - they sided with the buyer, of course, and have reversed the payment. Is this a "mark" against me in PayPal's view, then?
      if it wasn't a chargeback and just a reversal than
      you wan't get a ding or mark from PayPal. Now
      if you have A LOT of these types of incidents
      they may do something.

      I have had a PayPal account since 2000 - had
      my share of reversals, refunds, disputes by
      customers and a few chargebacks - account
      is still up and running - never had a "hold" or
      shut down by PayPal. (Knock on wood )
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  • Profile picture of the author Laura B
    Thanks, Guru. It just says "reversal to [customer]" in my PayPal overview, so I'm assuming it would say chargeback if that's what it was? I'm not sure I understand the difference.

    Remember how I said neither of this person's email addresses is actually listed as my affiliate at E-junkie? I'm wondering now if he is there under a third address, like maybe he signed up and then changed it, so that I will unintentionally pay him after the month ends. However, I had only two signups in September, none so far this month, so it doesn't seem as though he would be one of them. Just not sure what to think.
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  • Profile picture of the author fghaegele
    Before even reading this post, my answer is this:

    Provide all the proof you can of delivery, and hope for the best.

    Your in the hands of paypal now, and it is unfortunately entirely up to paypal. Welcome to the elite group of Paypal WTF?!
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