You can not win a chargeback as a seller when using PayPal

I sold some things on eBay and the buyer came to visually inspect the items. After he examined each product he asked if he could pay me through paypal when he got home. I said no. He reluctantly paid me and I figured this guy would be trouble.
Unfortunately, I was right. He emailed me a week later saying that a big part of what he bought was damaged and filed a claim against me. I called PayPal and they told me to escalate it to a dispute and submit all the evidence I discussed over the phone. I won the dispute and got my money back.
The buyer threatened me over email and said he was going to do a chargeback. Again I called PayPal frantic because I’ve been an amateur seller since 2003 and never had any problems for 12 years. They said to re submit my evidence and they would fight for me against the chargeback. Next thing I know I lost the chargeback.
My account had been negative for months because of this one buyer who every PayPal employee I spoke with said he was a fraud and setting a scam. I told them I feel like a lawyer fresh out of law school would have done a better job with the kind of evidence I had given them. They said if I ever need to get the records to subpoena them and hire a lawyer myself. It ends with me having to pay PayPal back money and my account is still frozen and them not caring that the crook just won. I kept hearing how they could not help me and that was more frustrating than anything.
Now I will never use PayPal again and I will pay back my negative balance one penny at a time. I also had to close my eBay account even though I use it to buy things for my kids. I tell me kids, “Don’t tell me what you can’t do, tell me what you can do.” It’s a shame that my kids who are 5, 7, 10, and 12 know this better than a PayPal employee. I’m really disappointed how they know this guy is a crook, but did so little to get my money back and do what was right.

Posted: September 18, 2015 at 2:18 pm


12 Responses to You can not win a chargeback as a seller when using PayPal

  1. Carlos says:

    You made the mistake to sell in person. Never sell in person, if you can not show proof of delivery, you lose the chargeback every time. PayPal can defend you up to certain point, but you have to protect yourself against scammers. I had a chargeback last week from a buyer claiming that he did not authorize the payment, I sent PayPal proof of shipment and the receipt from USPS..always keep the receipt if you use USPS as a carrier..the guy lost the case even he was doing it from his credit card company against me and PayPal. Never forget, PayPal acts as your payment processor, they do not control chargebacks if the buyer pays with credit card instead of PayPal balance. Regards

  2. Robert says:

    Had a Buyer who claimed the UPS battery Backup was the wrong side and sent me back a block of wood for credit. When I contacted PayPal I heard that old story too, about how they had my back, but not so when Buyer won his charge-back through his credit card company by providing the return receipt. Without contacting PayPal they awarded him back his money and simply notified PayPal after the fact. That’s when PayPal got stupid and suddenly loose all their records on the case – three times! Which I resupplied each time. Had me jumping through hoops for half a year, even demanded I get a police report on the incident five months into it, yet at no time could I get them to send me one piece of information they had control of – not even which credit card company was involved. Final word – failure on their part to act in any way had funds pulled by credit card company and they (PayPal) in turn withdrew from my account – to immediately then freeze, which shut down my eBay account, an account with over 1,200 positive feedback and only two negatives over a six year period. PayPal ain’t got shit cover when it comes to Seller protection.

  3. I am in the process of becoming a small seller and I plan to make ALL SALES go through PayPal Only. I first used PayPal when making a purchase and found out the seller would only take payments if made by using PayPal ONLY. I didn’t understand why my credit card wasn’t good enough. I have LONG, Been using PayPal and even as a buyer, I got paid back from an engine the blew up on me when it was after the 30 days, They have a buyer protection program that looked at all my additional purchases from the same seller to get parts to replace on the engine to make it run and I was able to prove that I ordered very many parts to try to make the engine run and it did not run for about 40 days after OI purchased it and after it was running for the first time, It only ran for about a week until a hole burned through the top of the piston. Completely burned up. PayPal issued me a full refund for the engine as well as the shipping cost long before getting an answer on if the seller was going to refund or not. So PayPal paid me back not knowing if the seller was going to pay a refund on the engine. It took a good month before finding out if the seller was going to pay PayPal back the cost of the engine, and I don’t know if the shipping was going to be paid back or not, BUT I GOT MY REFUND OVER A MONTH BEFORE PayPal Got a decision on weather or not they were going to make a refund. after that engine blew. And on top of a refund (3 digits) I was also rewarded $25 on my PayPal Account to make any other purchases. My Small time selling won’t go through anything unless a buyer uses PayPal. Thanks PayPal.


  5. Pat says:

    There is a major problem with this story. 1. You state you sold items outside of EBay/PayPal 2. Buyer filed a case against you with PayPal and EBay.
    As such neither one can charge you as you did not use their services. When you sell item outside of EBay you cancel your listing. If the item’s did sell through EBay but paid outside of PayPal your only recourse now is to take your case to small claims ( no attorney needed ) and present your case.You will WIN. The buyer inspected each item prior to buying. You can not control what actions the buyer does with the items to cause or not cause damage after purchasing EBay and PayPals terms of service are plain and very clear whether buying or selling. PayPal and EBay both tend to side with the consumer but not always. PayPal offered their expertise in your case as at the time they were partners. I would re-appeal based on your post and talk to a supervisor. ..Good luck

  6. this has to do with Sammy Dress . i have not received my products . you have released my money. bad move on your part. please rectify immediately.

  7. Lovely says:

    I have a same problem. Customer didn’t even email us if there’s a problem with the product so we sent an email to buyer BUT buyer is not replying. :(
    I also sent a proof to paypal that buyer already received the items including all the proof .
    I am hoping i can win to this case

  8. Karen says:

    I have been accused of selling counterfeit goods from a buyer his credit card have taken funds from my paypal account without even asking for any evidence from me only taking his word for it surely they are breaking the law

  9. mark rummery says:

    Buyer’s name: Eva Transaction date: 18 October 2015. Disputed amount: £435.00 GBP.
    I Have just been told by PayPal AFTER 6 MONTHS that my dispute case won in October 2015 could not be paid because buyers bank would not release funds. The buyer picked up the car from my forecourt and drove 600 miles home in the car and then opened a dispute. PayPal told me next time take cash with car sales through EBay! How can you win a dispute only to have it overturned because buyers bank refuse to pay???? That’s ridiculous!

  10. Keith Pitcher says:

    I’ve been selling some used graphics video cards, a few dozen happy customers. As you know ebay can use the UPC cod to give the exact product description for a used item, along with whatever the user puts in. One user, charitymarathon , emailed me after receiving the card and said it was not what he ordered and to send a return shipping label. (The auction had no returns accepted). I checked his feedback and someone claimed he sent an empty box back. I asked him how it was not what he ordered, was it damaged in shipping, what did he expect. No response. A month later he does a chargeback. Paypal pulls the $240 along with a $20 chargeback fee. I gather all the emails, it’s now in the credit card company hands supposedly.

    I call paypal and complain. I get the $20 chargeback fee back. I ask how I can protect myself from a buyer scam, you can’t. Seller protection does not apply if the buyer claims it’s not what he ordered. I called Ebay and a seller CAN NOT leave negative feedback on a buyer. As I had already left a feedback to the buyer for a fast payment I could not even change my positive feedback to include a “I got hit with a chargeback”. I asked Ebay how to not be scammed, they had no opinion.

    The most ironic thing, my ebay buyer is Jaewon Suh the student contact for the University of Michigan Business Ethics Society. I emailed the 2 faculty for the Business Ethics Society to see if they had any opinion and not a word back. I emailed an assistant Dean of the U of M as this seems to go against the principals of Business Ethics, not a word back. My next recourse is small claims court.

    In summary it’s very seller beware on ebay, you can’t complain about the bad buyers in feedback or ebay directly, and ebay has no advice on how not to be scammed.

  11. Polly says:

    Help, I use the paypal triangle in my phone. I get a signature for every purchase, and write a receipt. These are in person transactions. The buyer took a copy of the receipt, the merch. Then filed the chargeback. Never contacted me kept the merch. Paypal, I am not protected as it is not a retail store? I sell merch at a 5 month long flea market. I have a booth that never moves. How is this not a store. The purchase was 46.01. Lost the case despite submitting receipt ect, What can I do to get my frees and and money??

  12. Lindsay Marston says:

    People have scammed me twice for physical gift cards I’ve mailed out both times and claimed they got hacked, and both times PayPal paid us both back. I try to explain it unlikely people get hacked and coincidentally only buy gift cards and that they only claimed to be hacked because I refused to email them the codes so they couldn’t scam me and they got mad I didn’t fall for it. Stop helping these people and encouraging more scammers

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