Re: Best option for payment gateway Quote:
Originally Posted by ebaystealth1974
I don't think I understand... the bold parts seem to contradict each other. | I had a feeling that would be misunderstood lol.
Paypal is great because of their seller protection policy. Sellers don't dispute chargebacks directly on Paypal. They provide all relevant information about a transaction to Paypal who disputes the chargeback with the customer's financial institution on the seller's behalf. I've seen Paypal chargebacks where the customer's financial institution will reach out to Paypal multiple times over several months for additional information, but the seller is never asked for additional info by Paypal. Paypal just does their best to dispute the chargeback based on what was initially provided by the seller.
When it's all said and done there are three possible outcomes:
1) The seller/Paypal win the chargeback and the funds are released back to the seller, but the seller is charged a $20 chargeback resolution fee
2) The seller/Paypal lose the chargeback but the funds are released to the seller since the seller followed seller protection guidelines. Seller is still charged a $20 resolution fee
3) The seller/Paypal lose the chargeback and the seller did not follow seller protection guidelines so they're debited the chargeback amount + $20 resolution fee
So you're charged $20 either way but if you've followed all of their seller protection guidelines, you can be credited back the original payment amount even if Paypal loses the chargeback.
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In my merchant account, the middleman (PP) is eliminated and I attempt to resolve the chargeback directly with the customer's financial institution. I have to respond each time the customer's bank requests additional information or I lose the case. Paypal takes care of this back-and-forth with financial institutions when there is a Paypal chargeback, so the seller only responds to each PP chargeback once rather than having to check for updates in a merchant account.
At the end of the day if you fail to provide documentation deemed as "good enough" by the buyer's financial institution you lose the chargeback. The fees are lower in a merchant account, but TSYS isn't going to reimburse me for a chargeback since I shipped to the address on the eBay sales record.
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