Paypal Chargeback Fees

Bachinarium

Hi guys,

Not sure if this is the best place to post this but anyway, here is my problem...

I was selling some digital items (games) on eBay and was charged back in almost every instance. I accept losing the games and money as I should have researched better the risk of fraud before selling there. What I find so hard to accept though is I have been charged a large number of £14 fees for each of these. When I called Paypal to ask why they are charging me for being a victim of crime they said that it costs them £150 to dispute each chargeback case with the bank. Well, the problem with this is I chose not to dispute any of the chargebacks.

Is there anything I can do or am I just going to have to pay a relatively large amount of money for the privilege or being conned?

grumbler

Does PP say anything about these fees in the T&C?

The fact is that banks don't like clients (companies) with far too many legitimate chargebacks. So, I wouldn't be surprised if PP were more happy if you did dispute them.

That said, I think any chargeback against PP has to be preceded by an internal PP dispute. In this case if you ignore the dispute and PP simply take money from your account, no bank is involved in this.

dj1471

This seems to be the relevant part of the PayPal User Agreement:

11.5 If the payment is not covered by PayPal seller protection, PayPal will remove the funds from your Account and return the payment to the buyer. In addition, you will be responsible for PayPal’s Chargeback Fee, if applicable.

Digital goods are not eligible for Seller Protection. The fee is later listed as £14.

What was the reason given for the chargebacks and why on earth did you not dispute them?

eddddy

Alternatively...

if you believe that the buyers had no valid reason for requesting chargebacks, you could make a claim for breach of contract against each of them - for the price they agreed to pay, plus £14 consequential losses.

It's up to you to decide whether it's worth the effort - I guess it depends on the amounts involved.


Edit to add...

If the amounts justify it, and depending on the type of people involved. a stern letter of claim with the threat of legal action might even get some results.

ali137

Sorry can’t answer your question but I wanted to add the following:

What I would like to say is stay away from selling high value goods on ebay. When i started selling on ebay several years ago and sold a phone to a buyer for £200. 6 months down the line eBay sent a chargeback of £200 to my credit card as they had said the buyer used a fraudulent credit card. I lost on the phone as well as the money, was so angry :mad: at eBay. I have never sold items on ebay since then. They lost a customer, but now constantly getting emails to sell on eBay.

Ebay should be checking buyers and sellers.

:)I normally stick to gumtree and go and sell high value item in person in areas where there is lots of people and CCTV cameras. Touch wood never had a problem. I also take Counterfeit pen to check currency.