Paypal Chargeback

What is Paypal Chargeback ?

Paypal chargeback happens when the money that a seller has got for selling his good/service gets returned to the buyer (money sender).

To explain it in more detail - Paypal transaction takes place between a seller and a Buyer (mostly on ebay though not necessary), the seller is selling something to which the buyer is interested and henceforth he contacts him for the product. The Buyer pays him the money and the seller ships the product.

Now this is the ideal case but since their are bad fishes in the pond (including both buyer and seller), their will be chances that some problem will get created like seller failed to deliver the promised product or in not good condition or the buyer claiming he didn't got the product (even if he did). In either of the scenario, the buyer will file for the Paypal chargeback (Only Buyer can claim for chargeback which makes sense, sellers can only dispute the chargeback).

So in this article, we will be covering all the aspects of Paypal Chargeback from both, the Buyer point of view as well as Seller Point of view.

If you are a Buyer

If you are an honest buyer and have paid for something which you didn't got, you can file for chargeback. You can easily do this through your paypal panel.

How to Chargeback Paypal ?

While chargebacking, paypal will ask for various information like why you are doing this, for which you need to fill all the info.

As the chargeback case will initiated, paypal will took away that much money from seller's account. If the seller don't have that much money, paypal can't help you and can only promise you that in future if the person gets any money then they will re-initiate the process of refunding you the money, though the chances are very slim of you getting back your money, if the seller is indeed a fraud.

If the Seller has money in his account, paypal will take money and put it under arbitration till the case gets resolved. They will ask for seller's view and then decide who should get the money. Its a lengthy process but most of the time (infact almost all the time), the money goes to the buyer.

If you are a Seller

If you are a seller chargebacks can seriously hurt you and your business, The reason being, paypal is heavily biased towards buyers and most of the chargebacks goes in their favor.

How to Avoid Paypal Chargeback ?

If you want to avoid paypal chargebacks, then you may like to read this article which covers the topic in detail.

How to Make yourself Safe from Paypal Chargeback ?

Paypal Chargeback Scam
Lot of people act as buyers and chargeback even though they have got the product. This happens when the seller is offering a non tangible product like a service (designing) and as they are not protected by paypal, buyers get the service as well as his money. This is the single most reason why paypal is hated so much even though its a great service.

To know more about How to Avoid Paypal Chargeback ? , you can read the article.