How do you deal with PayPal chargebacks?
- Thread starter vladimir
- Start date
cheapdedicated
New member
Where a client is just trying to pay for a service they rightfully ordered or abused that you can win with evidence of IP address etc and of course TOS. The impossible part is where the account was just stolen.
This is what I posted in another forum on the same subject.
Does any body use the tools provide by PayPal?
i mean that is what they are there for, for example:
The Customer service message
Create a personalised message for customer disputes.
You can find this in your profile under "Selling Tools", we use it and it has help prevent the few charge backs that may have gone through due to misunderstandings etc. The customer see this right before placing a charge back, and it is a nice way to communicate with your clients offering a way to resolve any issues or simply offer a refund before they escalate it to a charge back.
Does any body use the tools provide by PayPal?
i mean that is what they are there for, for example:
The Customer service message
Create a personalised message for customer disputes.
You can find this in your profile under "Selling Tools", we use it and it has help prevent the few charge backs that may have gone through due to misunderstandings etc. The customer see this right before placing a charge back, and it is a nice way to communicate with your clients offering a way to resolve any issues or simply offer a refund before they escalate it to a charge back.
cheapdedicated
New member
It helps with a client who wants a solution but sometimes a client will ask for a chargeback without even opening a single support ticket!
Totally understand what you are saying, but if the client goes straight for the chargeback at PayPal they are directed to this customer message first so they will see it no matter what and as I said it normally is enough to prevent the chargeback and give you and the client time to either arrange a refund or discuss the matter further and hopefully come to an arrangement that you are both happy with.
easyhostmedia
Well-known member
but if a client goes straight for a chargeback without making contact with you first then a message wont do anything as they have already decided not to contact you.
Well all I can say is it works for us and others that I have suggested it to have said that it is working for them.
Why not give it a try if it doesn't work then it won't matter because it doesn't cost you anything and if it does work then problem solved
cheapdedicated
New member
Exactly my point. Such a client has made up their mind they want money NOT support. The only message that will stop them may be is a link to request an instant unconditional refund.
That is exactly what is in the message we use, it has a link to our account department and a link for a refund thus avoiding a chargeback. if they click the link for the account department it gives you an opportunity to resolve the issue avoiding both a refund or chargeback if they click the link for the refund at least you avoid a chargeback.
cheapdedicated
New member
In that context I think It might help.
Licensecart
New member
Nothing you can do, minus take the pain and try and work with your supplier if you buy servers from them, they might offer a refund for fraud. Report the person on fraudrecord.com. If it's disputes you can phone PayPal and get it sorted.
If we receive a chargeback, the client's entire account is suspended and all products and services that they have with us.
We report the client on Fraud Record
We then charge the customer a $75 administrative fee (as this is outlined in our policies) as the client did not give us the opportunity to work with them or resolve the issue.
After all, we do have a 30 day refund policy on most of our products and services.
If the client refuses to pay the $75 fee and continues to pursue the chargeback and doesn't want to cancel and resolve the issue with us, then we will send their account to collections to collect the balance due on their account, the additional $75 and the amount that it costs for our 'collection attempts / services'.
Doing a chargeback is a loss for both us and our customer, no one wins with a chargeback.
We report the client on Fraud Record
We then charge the customer a $75 administrative fee (as this is outlined in our policies) as the client did not give us the opportunity to work with them or resolve the issue.
After all, we do have a 30 day refund policy on most of our products and services.
If the client refuses to pay the $75 fee and continues to pursue the chargeback and doesn't want to cancel and resolve the issue with us, then we will send their account to collections to collect the balance due on their account, the additional $75 and the amount that it costs for our 'collection attempts / services'.
Doing a chargeback is a loss for both us and our customer, no one wins with a chargeback.
easyhostmedia
Well-known member
Once a chargeback is started it cannot be stopped, so it will be carried out to the full.
with paypal as soon as it is started paypal will freeze the payment or take the money from your account and place it in a holding account until the chargeback is completed, then the money will be given back to you or as in most cases the money returned to the paypal account holder.
good luck in trying to get any admin fees off anyone as what if a client has signed up using a hacked paypal account or bank card, the true card holder or paypal account holder would chargeback the payment as unauthorised, so who would you charge the $75 too
Why can't it?
If the client pays with a credit card, one call to customer service will fix it.
Never had to deal with PayPal chargebacks, but I still believe you can inform of PayPal of a mistake and they will drop the case.
HostMeRight
New member
I dont think refunding without question to save time is the best way to operate a business. if the user has gone outside you TOS then fight it all the way. document everything and ensure you make the user agree to the TOS on signup. then give paypal all the information you have, ensure the customer has used the service and you can prove they have broken the TOS. its worked for us quite a few times.
easyhostmedia
Well-known member
a chargeback is different to a paypal case which can be stopped.
a chargeback is started by the true card holders bank, it has nothing to do with paypal. paypal will get charged by the bank and they pass this charge onto you.
I've only had one issue with PayPal and that was with a woman who claimed she never requested our services, but PayPal was able to trace the IP back to her. She later apologized to us because she was in debt and couldn't afford what she ordered.
We would try to contact customer first, if we are unable to reach out to the client, we will suspend the account and service.
There's nothing you can do when chargeback occurred, it's the nature of the industry, what we can do is to review the order before we deliver the service to avoid scamming.
There's nothing you can do when chargeback occurred, it's the nature of the industry, what we can do is to review the order before we deliver the service to avoid scamming.
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