Chargeback - Paid by PayPal

stayinganonymous

I have never filed a chargeback before so would like to ask for some advice on how it works when paying by PayPal.

I paid with PayPal using the pay after delivery option. Does this mean I won't be able to file a chargeback because the payment was made by (as quoted from my PayPal email) "The money will be debited from your *Bank name and account number* account". I am guessing the PayPal payment would have needed to be funded directly from my debit card? even though on my bank statement it shows as a 'PayPal purchase' and not a direct debit.
Usually I do not use the pay after delivery option and always pay instantly with my PayPal payment method always being 'Instant Bank Transfer'.

molerat

Why are you needing to charge back ? Have you used the Paypal dispute resolution ? A bit of a minefield depending exactly what method they used, I would have thought it would be DD.

wealdroam

I think you'll find that chargeback is only applicable to card transactions.

As you seem to be saying that Paypal took the money direct from your bank account using Sort Code and Account Number, I fear chargeback is not appropriate.

A couple of further points:

1) Direct Debit and Debit Card transactions are entirely different things. It's best not to mix them up.

2) Funding a Paypal payment using 'Instant Bank Transfer' will never be eligible for a chargeback.

stayinganonymous

Ah ok I see, well at least I now know not to bother going down that road, I just wasn't sure how chargeback worked. So it's a debit card chargeback but I funded it with a bank transfer not directly from my card.

I do currently have a dispute open in PayPal that's been open over for a week. I only opened it because the website I bought from has completely ignored my emails and phone calls to arrange return of the item I bought. They are continuing to ignore me even in the PayPal resolution centre. I will give them some more time to reply and if they still don't reply then I will escalate it to a claim but I don't hold out much hope of winning though, not after losing a case before (PayPal went in sellers favour). It seems if you are a buyer you are very likely to win if you bought on eBay, but I didn't I bought from a website. If I don't win the case then that's when I would have tried to claim a chargeback but can now see that isn't going to be possible.

Buzby

It still doesn't work. Chargebacks only apply when you pay the merchant directly. If you use an intermediary, then CBs are refused, because your claim is not against them.

shaun_from_Africa

Chargebacks only apply when you pay the merchant directly.

This isn't correct.
Section 75 claims require payment to be made directly to the retailer but as chargebacks are not something that enshrined in law, banks and credit card companies are free to make their own conditions as to what types of transactions are eligible for chargebacks and many will process these even if payment goes via a transfer service.

This is why Paypal specifically state that sellers are protected against chargebacks if they have followed the requirements for seller protection.

stayinganonymous

Buzby wrote: »

It still doesn't work. Chargebacks only apply when you pay the merchant directly. If you use an intermediary, then CBs are refused, because your claim is not against them.

Buzby, I wondered when you would reply to my thread. You seem very passionate about chargebacks when paying by PayPal. I've seen your username/posts on the internet when I searched chargeback paypal yesterday. You are adamant one cannot do a chargeback when paying by paypal, when I've read many posts that it's been done many times and have been successful. The sellers account gets charged and they then have to pay it back, not the person filing a chargeback. I'm sure you'll insist that is all incorrect but I'm not going to argue about it. The fact is in my current situation the reason I cannot do a chargeback, as previously stated by the first two members that replied to my thread, is because I paid with an instant bank transfer and not my debit card.

https://www.paypal.com/uk/webapps/mpp/ua/useragreement-full

4.4 Risk of Reversals, Chargebacks and Claims. The receipt of a payment into your PayPal Account does not equate to the receipt of cleared funds. A notification that E-money has been sent to you, does not amount to a receipt of E-money in your Account unless you have accepted the payment. You acknowledge and agree that a payment transaction is completed and received by you even if it becomes subject to a Reversal, Chargeback. Claim, Reserve or hold. When you receive a payment, you are liable to PayPal for the full amount of the payment plus any Fees if the payment is later invalidated for any reason. In addition to any other liability, if there is a Reversal, or if you lose a Chargeback or Claim and you are not entitled to a payment under the Seller Protection Programme, you will owe PayPal an amount equal to the Reversal, Chargeback or Claim and our Fees per Schedule 1 (including a Chargeback Fee if applicable) and PayPal will debit your Balance to recover such an amount. If a sender of a payment files a Chargeback, the credit card company, not PayPal, will determine who wins the Chargeback. You can find out more about Chargebacks by reviewing our Chargeback Guide, accessible via the PayPal Security Centre and the section called: “Selling Safely”. The PayPal Security Centre is accessed via the PayPal website.

shaun_from_Africa

A quick search on the ebay discussion pages will show that chargebacks can and do happen when paying with credit and debit cards via paypal.
These are only a few of very many cases.

http://community.ebay.co.uk/t5/Seller-Central/Unauthorised-Chargeback-How-to-get-fee-credits-back/m-p/1886772/highlight/true#M52156

http://community.ebay.co.uk/t5/Seller-Central/paypal-chargeback/m-p/2319426/highlight/true#M91404

http://community.ebay.co.uk/t5/Seller-Central/Chargebacks/m-p/1675254/highlight/true#M37120

molerat

Is this a INR or SNAD dispute ? The former should be an open and shut case.

stayinganonymous

molerat wrote: »

Is this a INR or SNAD dispute ? The former should be an open and shut case.

I have opened a SNAD dispute. Seller has recently decided to reply in the resolution centre and has declined my refund request, lying saying they sent me a returns request when I have received no info at all about where to return the item to. I am reluctant to escalate to a PayPal claim because I don't have much faith in PayPal after losing a SNAD last year. I bet if I bought the product on eBay I would win, post proof of return then get my refund but I bought directly from a website.

Poppie68

I have done a chargeback on ebay, paypal which is linked to my debit card..