No refund for Big Payments

10 replies
Hi Warriors,

Does anyone of you know if Paypal has an agreement wherein the Buyer cannot just ask for a refund for big payments?

The problem here is some customers, who after you served them the order, suddenly asks for a refund from Paypal. It is so frustrating because we already incur big cost on our part to fulfill his order and asking for a refund from Paypal means losses to us especially when they won the claim.

Is there any method where Paypal can regulate these refunds especially with big payments? So that we sellers are also protected to some abusive customers?

Thanks.
#big #payments #refund
  • Profile picture of the author Danny Shaw
    It depends what niche... If it is digital products or services they will almost always win a claim.

    The best way counter this is investing in better tracking and have systems in place to automatically build a counter claim for every customer.
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    • Profile picture of the author WillR
      Originally Posted by Danny Shaw View Post

      It depends what niche... If it is digital products or services they will almost always win a claim.

      The best way counter this is investing in better tracking and have systems in place to automatically build a counter claim for every customer.
      If it's digital products it is almost always the seller that Paypal sides with... not the buyer.
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      • Profile picture of the author Richard King
        Originally Posted by WillR View Post

        If it's digital products it is almost always the seller that Paypal sides with... not the buyer.
        Thats not always the case. If the seller knows the rules and states them in the paypal dispute then the seller is almost guaranteed to win the dispute.

        Richard
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    • Profile picture of the author brutecky
      Originally Posted by Danny Shaw View Post

      It depends what niche... If it is digital products or services they will almost always win a claim.
      PayPal does not protect the buyers for digital products or services. If its one of these all you have to do is escalate the buyers claim to a dispute and you will win. Though you should still contact the buyer and try to work out some agreement between you to to make sure your both happy.
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      • Profile picture of the author Robert Puddy
        I have never lost a paypal dispute, once we tell them its a digital product and give them the buyers IP address and the dates and times they logged in to access it, the dispute is always dismissed in our favour.

        If they use a credit card though and the CC company puts in a charge back request the odds drop dramatically, the win rate is less than 10%. though PP will fight on the sellers behalf in a case of a chargeback if you give them the ammunition to fight it with.

        but as chargebacks effect PP own merchant account they tend to lose more often
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        • Profile picture of the author yakim1
          Originally Posted by Robert Puddy View Post

          I have never lost a paypal dispute, once we tell them its a digital product and give them the buyers IP address and the dates and times they logged in to access it, the dispute is always dismissed in our favour.

          If they use a credit card though and the CC company puts in a charge back request the odds drop dramatically, the win rate is less than 10%. though PP will fight on the sellers behalf in a case of a chargeback if you give them the ammunition to fight it with.

          but as chargebacks effect PP own merchant account they tend to lose more often
          I have been online for a very long time and also have never lost a PayPal dispute. I do supply everything that Robert supplies in a dispute answer but I add one more additional item. I always include the download link to the product they purchased.

          It is the charge backs that I rarely win.

          Best regards,
          Steve Yakim
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          • Profile picture of the author Alex Blades
            No refund for Big Payments Hi Warriors,

            Does anyone of you know if Paypal has an agreement wherein the Buyer cannot just ask for a refund for big payments?
            Yeah, it's called a check. When it comes to big ticket items that require you to spend money, then ALWAYS ask them to mail a check. Instant payment, check in the mail days later? I have no problem waiting on a check
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  • A buyer can ask for a refund regardless of the amount. If the order that you served them is not a physical tangible item that can be shipped, but an intangible item such as digital download or services that you provide, then it won't matter much whether it's $5 or $500, or $5000.

    In most cases (with few exceptions), if a customer opens a dispute for an apparent legit reason, your customer will likely be refunded, unless you have a strong case. This could be for example proof of communication between you and the customer where they acknowledge receipt of the service and are satisfied, etc, but later claim that you did not deliver the service.

    Either way, it's never a good idea to incur large upfront costs in order to provide a service. If you want to run a business that incurs upfront costs, ask for a non refundable deposit that covers those upfront costs. Then if they ask for a refund on the delivered service, at least you won't be in the red.
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  • Profile picture of the author talfighel
    It does not matter how low or how high the payment is.

    The buyer always has a very good chance of winning. I know that very well.

    Originally Posted by AaronHarris View Post

    The problem here is some customers, who after you served them the order, suddenly asks for a refund from Paypal.
    Some will but many others will be happy.

    You just have to accept it and know that it will happen once in a while.
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