Forum

... paypal reverts a payment b/c "Unauthorized use of account" - how to handle it?
 

Hi,

not SNAD or Non-rec,
they reverted a 300$ payment claiming the user reported Unauthorized use of his account, that he did not autorize that payment...

they ask for tracking, and other things...

I have a series of e-mails where user shows satisfied for the item received
I have the tracking number, but it still does not show up in USPS site (international sale, south america to USA)


anyway, emailed the guy to see whats up

Let's asume here no bad intentions by the user ( 9 years client, very reliable)

What could be the reasons that triggered this reversal?
Maybe it was an automatic thing?

thanks

Sounds like this 'guy' might have allowed a family member or friend to use and charged back from lack of knowledge. If a longtime client, work with him. Was it done via eBay? You should be protected with your tracking - I know that I have been on a CC chargeback...once.

No, it was done directly through PP - It says the user requested his BANK to do so --

so is possible to do a bank chargeback? that was pretty unusual

first time I got hit by this one... neither had a cc chargeback before

Bank chargeback is a doozy - that's a lot of time taken and verification. Pull up his contact number and call him directly to find out what is going on and if you guys should still be in business.

If it was done through paypal but not an ebay sale...you probably will be held liable.

You could have a picture of the guy opening the package, holding it next to his face with a smile and thumbs up and it still will not matter.
Paypal does not eat anything they can charge to someone else.
Credit card chargbacks and bank chargebacks are automatic reversals.

And a fee of $10 to the seller - highway robbery.

Yeah, I forgot about that fee. I think the fee actually went up t0 $15-20.

This should be ILLEGAL!

PayPal users never have any credit card information on file, and all we get is the name and address to ship to. PayPal OK's the payment, THEY should have a fraud checking system in place to detect fraud.

On my merchant account *I* am liable for any unauthorized charges, BUT I get the credit card information INCLUDING the address verification from the bank. So, if I ship to another address, I am taking a risk. I always have the option to refuse an order (and I HAVE DONE SO!)

With PayPal, if you cancel, it gets counted against you (at least on eBay) but PAYPAL gives you the address to ship to. We have no way of knowing if the address is verified or not. So we accpt that risk blindly.

It's a wonder that ANY eBay sellers are profitable!

Update: buyer responded, said it was a mistake he entered my address (email?) by mistake, anyway i asked him to cancel dispute, he mails back and says "I logged in to paypal and canceled dispute you should have the money"... Err NO, the funds are still held...

I wonder if I am going to be flagged or something for his silly mistake

of course we are talking of a stealth account here, so if I have to fax stuff its problems

Anyone aware that buyer cancel dispute and its still on course? WTF... man...