eBay Charge Back Scam

Lthispasito on 21/02/2017 - 05:27
Last edited 21/02/2017 - 05:28

First let me apologize if I have posted this in the wrong category (possibly financial?). I recently sold a digital copy of a game on eBay and the buyer has redeemed the game so I cannot sell it again. The payment was initially prompt but the buyer then opened a case for charge back. I provided evidence of sending him the code over eBay messages but the charge back still went through. I have lost the item I sold and also got whacked by a charge back fee.

Is there anything I can do from this point? It's not a huge amount of money but I am pretty angry about this whole situation. If I can't do anything about this then how do I avoid it in the future. I have already added the following requirements to limit potential buyers:

  • Have received 2 Unpaid Item strike(s) within 6 Month(s).
  • Have a primary postage address in a location I don't post to
  • Have 4 Policy Violation report(s) within 1 Month(s).
  • Have a feedback score of -1 or lower.
  • Are currently winning or have bought 1 of my items in the last 10 days.
  • Only apply this block to buyers who have a feedback score of 5 or lower.
  • Haven't gone through phone verification.
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Comments

  • dhunterzao on 21/02/2017 - 05:55
    +4

    Same thing happened to me last year. Just avoid eBay and PayPal for selling digital codes was my lesson learned from that. They heavily favour the buyer these days.Try OzBargain classifieds or even Gumtree I'd say. Personally, I haven't tried to sell any digital code since.

    Edit: Was it a local buyer? In my case it was an international buyer. Paid with PayPal and then later the chargeback came claiming someone unauthorised had used the PayPal account. I was shocked that such a loophole exists for buyers (where they could claim later it wasn't them who used the credentials to make the payment) to easily scam the system like that.

  • DingoBilly on 21/02/2017 - 10:41

    As above. Some items you just need to be more careful with.

    If anyone is picking up items from your house, only accept cash in hand. It prevents the whole chargeback issue on that front.

    Digital codes are technically illegal to sell as far as I'm aware, so you're not going to get much support from eBay/Paypal. I'd avoid international sellers, and only sell codes you're willing to lose money on. If it's something substantial, look elsewhere like Gumtree etc. and look for cash in hand.

  • [Deactivated] on 21/02/2017 - 11:02
    +1

    I recently sold a digital copy of a game on eBay and the buyer has redeemed the game so I cannot sell it again.

    There's your problem there. Stop selling digital game codes on eBay/paypal. You are not the owner of the software nor are you authorised to sell these game codes.

    A lot of sellers sell their game codes and then issue a chargeback to the place where they bought it from, thus leaving the buyer with an invalid code.

    Ebay and Paypal are correct to favour the buyers.
    Paypal and Ebay have been favouring buyers since they started over 10 years ago. Things aren't going to change. Sick of people complaining about the same old scam. It's getting old.

    • thispasito on 25/02/2017 - 16:26

      As the user who posted this comment has for some reason disabled their account. Let me explain this for other people reading the thread. This has nothing to do with being an authorised seller. I can be an authorised seller who is selling keys on my own company website and be issued a charge back via a buyer who bought with paypal or credit card.

  • Baebs on 21/02/2017 - 11:49
    +1

    Back in the day, it was commonplace to have the buyer add a note to the transaction:

    I, _______, authorize the payment (as gift) of $____ (including fees) via Paypal to ____[STEAM_______] on /_/20 for the virtual item(s), _____ Downloadable Content. No chargebacks will occur under any circumstances as I, ____, have already received the item via Steam Trade.

    Not sure if this is viable today since I think PayPal has removed gifts (also ignoring the Steam).

  • 777 on 24/02/2017 - 14:24

    lol, got scammed same - 2 different buyer - 3 items ~100 AUD
    Spent hour with Paypal and ebay, DEAF ears

    btw would financial ombudsman help?

    • thispasito on 25/02/2017 - 16:16

      I looked into that and it seems like they are unable to help. It has to do with paypal and credit card policies…

  • [Deactivated] on 25/02/2017 - 16:44

    Finance Ombudsman does help and I have sucessfully had them credit the full value of much more expensive items twice
    The Vice Chairman of Paypal gets involved and apparently issues the credit to you
    Please pursue it as Paypal will help you out if you explain the issue

    • 777 on 26/02/2017 - 11:36
      -1

      You serious or just trolling

      • [Deactivated] on 26/02/2017 - 16:09
        +1

        Actually Serious
        But hey think what you like, Considering I have dealt with Paypal for years and had sellers rip me off, I have EVERYTIME been sucessful in getting a goodwill credit to deal with issues

        • 777 on 27/02/2017 - 17:29

          ok point taken, will try, thanks

  • msmhw on 02/03/2017 - 00:59

    it happened to me once last year but before I sent the code I did some checks in the buyer (his original address, facebook..etc) and found he is from Russia (he used random Australian address with the purchase). Straight away I refund him and canceled the transaction and I messaged him saying can not sell him the code.

    • thispasito on 03/03/2017 - 02:39

      Ah yes, I should do this from now on.

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