PayPal Chargeback Scam

oliman on 08/06/2017 - 10:02
Last edited 08/06/2017 - 10:11 by 1 other user

Posting my email to PayPal below which explains the chargeback scam that occurred to me…

I am making this appeal to PayPal for the reconsideration of the incident (PP-D-1285286) on which PayPal took decision against me. I sold the item to the buyer on eBay auction. The buyer, after winning the auction, discussed having problems in making PayPal payment for that item he bought from me . I asked the buyer to make the payment several times and the buyer finally proposed me to issue him an PayPal invoice for the payment of the item so he can pay me for that winning auction item.

I agreed and generated the invoice, and he paid me the winning bid amount for that auctioned item and I confirmed payment of that invoice being received. All of this conversation was done through eBay messages and I have proof of that which I can provide. After a few weeks, the buyer opened up this unauthorised chargeback against that transaction under PayPal. I was surprised to see it as buyer requested invoice and paid for it intentionally as explained in my appeal before. I gave my side of details in the PayPal dispute and after one month, the decision was taken over the buyer's favour and my PayPal account was debited against that amount.

I was really upset with this and called PayPal to explain my situation. The support staff apologised and said there is nothing that can be done about this. Then I called eBay, and told them what happened, in desperate seek of a help. eBay staff expressed that this was an unfair thing happened to me and advised me to lodge an appeal with PayPal and explain my situation. Hence I am writing this appeal with proofs of eBay messages.

Please help me in this regard as there is no mistake from my side and the buyer is taking unfair advantage of this situation. I don't want to end up quitting to use PayPal and express my grief to friends and family and on social media as I am hopeful that PayPal will solve this issue for me somehow.

PayPal replied to this email explaining how Credit Card chargeback is not covered under PayPal blah blah..

I am sure a lot of PayPal users might not be aware of this chargeback scam. So just letting you guys know through this post…

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Comments

  • djkelly69 on 08/06/2017 - 10:09
    +3

    Might want to make a short version of that wall of text…

    It is kind of unclear what has actually happened as well - I assume the buyer paid, you sent the item, buyer received it, and then he did a chargeback on his credit card?

    What proof did you provide that you sent and the buyer received the item? Why did PayPal decide in the buyer's favour?

    • oliman on 08/06/2017 - 11:33
      +2

      Yes this is right.

      The buyer didn't paid directly through PayPal for the item purchased and requested me to issue invoice for the payment. I issued the invoice and then he paid that PayPal invoice using his credit card. And after few weeks, he raised a dispute of chargeback and PayPal favoured his ChargeBack case.

      Paypal replied me with this…

      "Please note that the chargeback process is external to the PayPal system and controlled by the card issuer. If a PayPal user initiates a chargeback with their credit card company we have no way of stopping the claim. What we can do is dispute the claim on your behalf in appropriate circumstances.

      When a chargeback is received PayPal reviews the details of the transaction in question to determine if the conditions of the PayPal seller protection guidelines have been followed.

      If a seller chooses to engage in transactions not covered by the seller protection, the seller assumes the risk associated with the transaction, as well as any potential liability"

      • idonotknowwhy on 08/06/2017 - 12:33
        +1

        +1 for sharing this. This scam is now on my radar.

  • Baysew on 08/06/2017 - 10:21

    So just letting you guys know through this post…

    I would like to know what happened, but your post doesn't tell me that. Can only assume that you are in the wrong.

  • [Deactivated] on 08/06/2017 - 10:22
    +6

    sounds like buyer won ebay auction, didn't make payment via standard methods and requested seller send him a paypal money request, he did it was paid and item sent. then when chargeback happened because it was a transaction not related to ebay as far as paypal was concerned, they just took the money back.

    if this is the case OP, never deviate from the accepted methods.

    • [Deactivated] on 08/06/2017 - 10:35
      +1

      gee that's a shifty one, so never send a separate invoice.

      • [Deactivated] on 08/06/2017 - 10:48
        +1

        I wouldn't. ebay already takes care of everything. the moment a customer wants to operate outside the standard process screams scammer to me

    • CyberMurning on 08/06/2017 - 10:51

      yeah that what the OP wanted to say, need to read that long post slowly :)
      wow another new scam method. world is so unsafe now - from terrorists, and from scammers

    • oliman on 08/06/2017 - 11:34

      Yes this is exactly the case…

  • jackofspade on 08/06/2017 - 10:27
    +6

    Lodge a complaint with https://www.fos.org.au/ Many people have had success.

    • rambao9 on 08/06/2017 - 11:52
      +1

      Ya just do this and they will give you the money back "as a gesture of good will"

    • oliman on 08/06/2017 - 11:56

      Thank you for this advise. In the complaint, who should be the service provider? PayPal or the buyer?

  • argonide on 08/06/2017 - 11:04

    You should be covered by PayPal Seller Protection which reimburses you for the payment if it's a physical, tangible item, you can provide proof of shipping and you shipped it to the address on the payment notification.

    • oliman on 08/06/2017 - 14:19

      Thanks for sharing this. i have contacted paypal again to claim my seller protection by providing them with the tracking number. Lets see how they respond.

      • whooah1979 on 10/06/2017 - 00:34

        i have contacted paypal again to claim my seller protection by providing them with the tracking number.

        do you have pos or pod?
        https://www.paypal.com/au/webapps/mpp/customer-concerns

        Proof of shipment or service delivery.
        If a claim or chargeback is filed, we may ask you to provide proof that you’ve shipped the item or fulfilled the service.
        For items you ship
        At the very least, your documentation must include:
        The date the item was sent, and
        An official acceptance by the shipper, such as a postmark or online status. A status that shows the item was delivered is also acceptable.
        It must also include either:
        The recipient’s delivery address, showing at least the state, city and suburb (or international equivalent), or
        A receipt from Australia Post showing at least the recipient’s suburb, city or postcode (or international equivalent).
        Examples include:
        A copy of the shipping receipt or shipping label that includes the delivery address, or
        For Australia Post eParcel customers, a copy of the consignment information page which shows the delivery address and the online tracking code that can be used to confirm delivery, or
        A shipping code PayPal can use online to view the shipping status and delivery address. You can get this from TNT, DHL, FedEx, Skippy Post and other carriers, or
        A receipt issued by the carrier, signed by the recipient acknowledging delivery.*

        • oliman on 10/06/2017 - 11:23

          Yes I have the tracking number of the shipment which I also posted at the ebay item which was sold. I could not post that tracking number to paypal invoice payment which buyer did initially as there was no option to enter tracking number.

          The tracking number is not working now for some reason (maybe AU post has expiry of tracking number after 2-3 months). But the buyer confirmed that he got the shipment in his further ebay messages as he was asking for unlocking iCloud on the phone, which I later did for him.

          I have asked paypal to reconsider this again (third time) and provided the postage tracking code. Lets see how they respond to it now..

  • KitchenSink on 08/06/2017 - 11:11
    +1

    Should always check the feedback of the buyer. If they have something like 0 feedback and no idea how to use paypal or issues with it then avoid. Most likely a new person or a scammer.

    I've had buyers with 0 feedback win a bid from me and I just gave up in the end trying to get them to pay properly via Paypal. Ended up relisting the product. Wasted my time.

    • oliman on 08/06/2017 - 11:41

      Yes the seller had 0 ebay rating when he bought the item through bidding.

      • KitchenSink on 08/06/2017 - 12:11
        +2

        Well there's a lesson learnt. Hope you get your money back dude. Thanks for sharing and letting others know.

  • ihbh on 08/06/2017 - 14:28

    Is it a large amount that you're out of pocket? Hopefully you can recover it some how.

    • oliman on 08/06/2017 - 15:57

      $425 that I lost

      I have seen on whirlpool forum that other people lost as much as $900

      • Baysew on 10/06/2017 - 11:29

        Everything is 2x+ on Whirlpool.

  • Nice one baby on 09/06/2017 - 21:23

    Don't forget to visit a police station and lay a complaint of fraud against the buyer.

  • Turd on 10/06/2017 - 00:17

    THAT SUCKS MAN!!

  • whooah1979 on 10/06/2017 - 00:29

    PayPal replied to this email explaining how Credit Card chargeback is not covered under PayPal

    do you have pos or pod?
    https://www.paypal.com/au/webapps/mpp/ua/useragreement-full#…

    • oliman on 10/06/2017 - 11:23

      Yes I have the tracking number of the shipment which I also posted at the ebay item which was sold. I could not post that tracking number to paypal invoice payment which buyer did initially as there was no option to enter tracking number.

      The tracking number is not working now for some reason (maybe AU post has expiry of tracking number after 2-3 months). But the buyer confirmed that he got the shipment in his further ebay messages as he was asking for unlocking iCloud on the phone, which I later did for him.

      I have asked paypal to reconsider this again (third time) and provided the postage tracking code. Lets see how they respond to it now..

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