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Old 06-14-2018
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Default Paypal chargebacks

Chargebacks seem to be a big problem for me, i sell legitimate items but there seems to be alot of scammers out there. I get about 10 chargebacks a week and probably why paypal limited my account. 80% of the chargebacks are for unauthorized credit card use which i win maybe 50% of. Usually paypal covers the ones i lose by their seller protection.
The other 20% are for item not recieved which i usually win with tracking number

My wuestion is do the chargebacks effect your paypal accounts standing even when you win them / it wasnt your fault?

How would i acoid unautherized credit card use claims?
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Old 06-14-2018
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Default Re: Paypal chargebacks

If you get loads then yes it can affect the account. It suggests your selling something high risk and PayPal do not like risk
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Default Re: Paypal chargebacks

In the event of a chargeback, paypal losses 99.9% of them. Their seller protection is the only reason you dont lose them all. You getting a lot of chargebacks is costing paypal a lot of money so they are going to clip your ability.
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Old 06-14-2018
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Default Re: Paypal chargebacks

You would lose your Paypal or an actual merchant account with that kind of chargeback rate. Unless you're filling 1000 orders per day 10 chargebacks weekly is really high.

Last I checked they charge a $20 chargeback resolution fee regardless of whether or not you win. Found out when I had a couple hundred $'s in fees I didn't recognize on my 2015 annual summary.

You could adjust your buyer requirements and probably avoid a lot of chargebacks.
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Old 06-14-2018
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Default Re: Paypal chargebacks

You need to take a really good look at WHAT you are selling and WHO you are selling to. You need to change something because quite simply PayPal is not going to let you rack up a ton of chargebacks, no matter who wins them.
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Old 06-14-2018
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Default Re: Paypal chargebacks

10 chargebacks a week is insane.

Paypal will also shut down the buyer's account if they file a chargeback with their bank.

As for you, normally they cover your cost if you did things right, but the fact that you only won 50% of it makes me wonder what kinds of items these are.
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Default Re: Paypal chargebacks

I sell toys and cosmetics both are from legitimate suppliers. Majority of the unauthorized use of credit cards come from toys which are file about 2-3 months from sale date. I sell about 20-30 units of toys a day . I am not really sure how they are winning these cases . My return rate on ebay is extremely low .05% but it seems like everyday there is a chargeback from either unuauthorized use or item not recieved
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Default Re: Paypal chargebacks

Ive actually dont think that ive ever lost a case where paypal did not cover it under their seller protection . But they do note that the customers bank sided with them
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