PayPal Chargeback - do we have to pay for unauthorised transaction?

cox78

catmiaow wrote: »

Yes they can just take money from the account, problem with you cancelling the card is that soon you will get a letter from their debt collection department demanding the cash. So cancelling it will not be the end.

Thanks. At least it will buy me time to argue it out with them, whereas if they just take the money I'll end up virtually skint for the rest of the month.

cox78

basilseal wrote: »

the problem is, with a hijacked account, someone else has had their money stolen, and pay pal have given it back to them, unfortunately at your expense. When something is stolen, someone has to lose out. The question is, should it be you or pay pal?

I do wonder about the legality of pay pal's terms and conditions, there's an interesting post regarding pay pal refunds here


Some would say that as pay pal charge enough for the dubious privilege of using their money transfer service, and as ebay insist that we accept it for transactions that leave us wide open to fraud, they should stand the loss.

From what I understand, if your credit card is stolen the bank are responsible for paying the money back. So, if a paypal account is hacked or "stolen", paypal should be responsible for paying it back. But appears it doesn't work that way.

soolin wrote: »

Interestingly there is a similar question in the Financial mail bit of the Mail on Sunday today, the Tony Hetherington pages.

Seller sold a TV, buyer collected and actual owner of the account realised they had an unauthorised transaction and reclaimed the money.

Paypal pointed out that their terms state that paypal is not suitable for collected items but after Mr Hetherington got involved they made a repayment as a goodwill gesture. Maybe worth a letter?

For other new sellers who may be reading this though this is a very common scam and one you do need to be aware of. You might find a quick read of the tips for new sellers thread useful:

Ah, very interesting, thanks. Will drop them an email.

basilseal

cox78 wrote: »

From what I understand, if your credit card is stolen the bank are responsible for paying the money back. So, if a paypal account is hacked or "stolen", paypal should be responsible for paying it back. But appears it doesn't work that way.
.

The credit card company will refund you and try to get the money back in the future, in the case of a pay pal transaction they can make pay pal give it them back, pay pal will then try to pass the loss onto you.

it's interesting to read in soo's post that pay pal claim that their servive is not suitable for collection items when their sister company ebay insist that you accept pay pal for collection only items.

If you have no joy with the Mails money advisor, try toney Levene at the Guardian, he's very good also.

soolin

basilseal wrote: »

it's interesting to read in soo's post that pay pal claim that their servive is not suitable for collection items when their sister company ebay insist that you accept pay pal for collection only items.
o.

The 'discussions' about this went on to several thousand posts on the community boards and probably hundreds on here when paypal was made compulsory.

Paypal are quite insistent that it is not suitable for collected items as you cannot comply with the seller protection rules and those rules are not exactly hdiden, a simple search on paypal will find them easily/ So if you take paypal and item is collected you must be aware that you have no seller protection.

However ebay (as far as I recall) never gave an official response, although one of the pinks did say that as this is a problem sellers might need to rethink whether items that cannot be delivered are actually suitable for ebay anymore.So basically, don't sell high end goods for collection on ebay.

Some sellers do still allow collection, they build in the possibility of loss to their business model just as you would build in any other risk. I though refuse collection now on most items and actually sell them elsewhere.

cox78

basilseal wrote: »

The credit card company will refund you and try to get the money back in the future, in the case of a pay pal transaction they can make pay pal give it them back, pay pal will then try to pass the loss onto you.

it's interesting to read in soo's post that pay pal claim that their servive is not suitable for collection items when their sister company ebay insist that you accept pay pal for collection only items.

If you have no joy with the Mails money advisor, try toney Levene at the Guardian, he's very good also.

Thanks, I've just emailed Tony, will wait and see what he comes back with.

My wife has also cancelled her card with the bank as we can't afford to have £150 taken out.