Interesting article on Paypal chargebacks via credit card

JohalaReewi

nightswimmer wrote:

Where's the irony? Whether PayPal is right or wrong to use this technicality is a totally seperate matter to the fact that currently, you are not allowed to charge a surcharge to cover PayPal fees.

You can charge extra to cover PayPal fees but not on Ebay because Ebay get upset and pull your listing, take thier ball home (or tell you to factor the surcharge into the selling price). Outside of Ebay, no problems with surcharges to cover fees (not just Paypal) if the buyer agrees to it. You could always tell buyers no Paypal, go do a bank transfer.

doingwhatican

So let me get this. When you use paypal to make a payment you buy e-money and this e-money gets sent person your paying. So when this happens the deal is completed, you've bought the e-money and sent it. So why can paypal claim back your e-money that you have been sent? Surely they can't do this if they face a chargeback from the cc company.

molar

doingwhatican wrote:

So let me get this. When you use paypal to make a payment you buy e-money and this e-money gets sent person your paying. So when this happens the deal is completed, you've bought the e-money and sent it. So why can paypal claim back your e-money that you have been sent? Surely they can't do this if they face a chargeback from the cc company.

I don't think paypal claim it back. They refund the e-money to the buyer and deduct it from the sellers paypal balance. This will leave their account in the red if they previously had a zero balance. To get the paypal account in good standing again the seller would have to make a credit to their account.