Thursday, April 5, 2012

How Have You Handled Chargebacks?

I woke up to a chargeback in Paypal.

A chargeback is when a buyer claims that they did not authorize the charge. They report to their credit card company that someone else used their credit card to make a purchase and that they want the money back.

Now when a chargeback is filed against a seller using Paypal, Paypal places a hold on the money and a dispute is opened. As the seller, you have the option to respond to the dispute, and in responding, you have the option to provide tracking and delivery confirmation. I made sure I provided all the necessary information including the buyer's Etsy username, the transaction #, the date of purchase, the date of shipment, the date of delivery, and the delivery confirmation #.

My worry now is that Paypal won't back me up.
I know that in Item Not Received disputes, if you prove delivery, Paypal will back you up and find in your favor.
But I've never had a chargeback filed and so I've never won a chargeback. If any of you has been through one, would you let me know what I can expect?

1 comment:

Tealwater said...

I have dealt with lots of chargebacks (not in my jewelry business, in my 9-5 jobs) and I have always found that if you, as the seller, can show that the buyer purchased the item and you shipped it (and they received it) you cannot be penalized for that. If their card was stolen the address you sent it to should not be the cardholders address (I don't know how that is possible through Paypal) and I believe the credit card comapany or Paylpal insurance will cover their charge. Let us know what happens.