PayPal Friends and Family Scam - Chargeback denied

investme

Hi folks,

Looking for some advice on what to do next.

Let me start by explaining what happened. I bought something on Facebook Marketplace and paid via PayPal goods and services, the seller (or scammer is probably a more appropriate title) said the funds were stuck on hold so refunded me - didn't really say a lot else just he didn't want to have to battle PayPal to release it. He asked if I could send it as Friends and Family, I said no. He then asked if I would consider sending half as goods and services, half as F&F, or I could come and collect it for cash. Given this response, I stupidly agreed to send all of it as a friends and family payment. Of course, after this he went silent, blocked me and did not respond to any messages.

Before I go on, I'm well aware this was incredibly daft. I've been trading via PayPal/eBay for about 15 years and I know better. Not really sure what I was thinking.

Anyway, after some research including on MSE in regard to Chargebacks / Section 75 i was convinced I would be covered. (see here: https://www.moneysavingexpert.com/reclaim/section75-protect-your-purchases/)

The payment was made in full using a credit card (not paypal balance, or part balance) and I had read numerous threads such as this (https://www.reddit.com/r/paypal/comments/57x183/i_won_a_friendsfamily_chargeback/) where people had been succesful.

I submitted all the evidence, the listing for sale, the chat history, the denied claim i raised via PayPal.

Unfortunately, Tesco have denied my claim. There reasoning is below:

Having fully investigated your dispute, we're unable to proceed on this occasion, and we'd like to explain why.

• We follow the guidelines set out by Mastercard , and unfortunately. as this payment was made through Paypal friends and family, there is no merchant involved. It is the same as making a direct payment to a person and therefore there are no dispute rights
  
  

We know you may be disappointed with this outcome; however, I hope you understand why we've reached this decision. If you still want to continue with your dispute you may be able to take this up directly with the retailer.

Would welcome any advice on what my options are

Thank you

JJ_Egan

Well posted on the forum , Pay Pal is not the merchant .

cymruchris

If you've sent friends and family - the thing to do next will be (As you already know really) is don't do it again. You live and learn. Unless you can actually track down your scammer - there's not much else you can do. 

[Deleted User]

There is a copy of their global chargeback guide Chargeback Guide (mastercard.us)
The problem you'll have is because you've used Friends and Family you essentially sent cash.

You could use the FOS but they are unlikely to take a different view.

investme

Deleted User said:

There is a copy of their global chargeback guide Chargeback Guide (mastercard.us)
The problem you'll have is because you've used Friends and Family you essentially sent cash.

You could use the FOS but they are unlikely to take a different view.

Thank you.

I know it's my mistake, but, no harm in trying. I have seen quite a few posts of successful claims.

How 'final' is the final chargeback decision? Can I appeal to Tesco? Is it worth me contacting them (in a non-threatening manner of course as my dispute is not with them per-se) advising them I am not happy with the decision and will be raising this with the FOS? 

born_again

investme said:

I know it's my mistake, but, no harm in trying. I have seen quite a few posts of successful claims.

How 'final' is the final chargeback decision? Can I appeal to Tesco? Is it worth me contacting them (in a non-threatening manner of course as my dispute is not with them per-se) advising them I am not happy with the decision and will be raising this with the FOS? 

A chargeback is pretty final if the retailer has rejected it. There is Pre Arb(ritation) but you only have 21 days to invoke it and Visa/mastercard will sit as judge & jury on the case.
Not worth it given it was F&F payment. (it is just a cash transfer)

Forget FOS as chargebacks are card regulations & if Tesco have followed the process then it is a no brainer rejection by FOS.

Same with S75 due to no debitor, creditor link as you sent money to paypal to pass on. Which they did. Paypal did/do not supply the goods.

Sadly the posts in the link are so far from the mark that in the 5 years since they were posted a lot has changed. PayPal are now more open to chargebacks than they used to be (they now chase the seller rather than simply rejecting a chargeback). But if you have not followed their procedure on buying something, as this case. They will simply reject any chargeback as is their right.

phillw

Paypal don't look favorably on fraudulently sending as friends and family as you are using their payment system for free.

You're basically saying "I know I defrauded you, but the person who I sent the money to has defrauded me, please pay me out of your own pocket".

It's a tough lesson, if someone asks for friends and family to avoid fees then offer to pay extra to cover the fees. If they still refuse, then walk away.

Paypal delay payments going to people if they suspect fraud, so again if someone asks for F&F because Paypal suspect them of fraud then walk away.