Last March, 2011, I tried selling mobile phone e-load. I made my landing page and make a button from PayPal so that I could accept payment thru PayPal. After making successful SEO ( Search Engine Optimization ) with my landing page as well as social media marketing, lots of orders came to my e-mail. Most of my orders came from an Indian e-mail from PayPal. So after receiving their payment thru PayPal, I begun sending the e-load number to the e-mail they used in buying through PayPal. But it is a big mistake not to make sure that my buyers are verified buyers.
I sold a total amount of $ 400 with a capital of $ 300Â until I realized that I am running a bad business.
I got different PayPal chargeback, here is an excerpt of what is chargeback :
A chargeback, also known as a reversal, is when a buyer asks their credit card issuer to reverse a transaction after it has been completed. It is available only to users who make a payment funded by their credit or debit card.
There are three main reasons a buyer will do this:
- The purchased item never arrived.
- The item was much different from advertised.
- Their credit card was used without their permission to buy the item fraudulently.
Chargebacks are initiated and handled by the buyer’s credit card issuer – not by PayPal – and will follow that company’s regulations and timeframes. That said, PayPal often plays a role in resolving chargeback disputes.
It is a reversal of an amount paid. The amount will be removed from your present PayPal account balance. It happen because the credit card company notifies PayPal’s merchant bank and debits the funds from PayPal due to fraudulent use of the credit card, which only means that somebody might have use a stolen credit card details and use it to buy an e-load by using a PayPal account.
I have made an e-mail captured of all the chargeback that I received fro
m PayPal below :
How do you dispute a chargeback?
If you wish to dispute a chargeback, you will need to provide certain information and evidence depending on the case. Below are the two most common reasons for chargebacks and the information you need to provide in each case:
1. The buyer didn’t receive the item
You must give either:
- A tracking number as provided by Royal Mail Recorded Delivery and Parcel Force 24
- Proof of a refund – this can be evidence from your PayPal account, the back and front copy of a cheque, or a money order used to reimburse the buyer
2. Unauthorised use of credit card
You should give:
- Tracking number for delivery of the item
- Proof of a refund – this can be evidence from your PayPal account, the back and front copy of a cheque, or a money order used to reimburse the buyer
- Any communication from the buyer, such as emails or positive feedback on eBay
- Any contracts signed or information on the sent item
- Date that the item was sent and the address it was sent to
- For intangible items or subscriptions – any information about the item or service
In these and all other chargeback cases, the more relevant information you can give, the better your chance of winning.
Sad to say that I don’t have such details since my transaction are all electronically done. I cannot prove that I have delivered the item by just merely sending them a copy of the e-mail conversation that I had with the buyers. All my claim to get the amount failed.
The worst thing is that some forum says that a chargeback has a time limit of 1 year. It only means that any seller could receive a chargeback after a year of transaction, which could definitely drain the business. I am still thankful to God that I have known this thing before it can cause me much damage in my business.
So I will make a suggestion on how to safely receive payment for your online transaction if you are selling something on the net through my next post. if some of my readers do have some experience with PayPal Chargeback or credit card chargeback, please share it here so that we can gain more knowledge about this fraud. This might also be a reason other company such as Dreamhost is not accepting PayPal as an first payment. and one of the reasons why the PayPal withdrawal has been deactivated in India.
Good to tell my readers that whatever loss in this PayPal chargeback has been recovered thru my other online blog earning. I am just sharing this information to warn future seller which would want to use PayPal as their payment method. Check our partner site about Credit Card information