Paypal does a chargeback on a closed account???

jollybee · #1 06-04-2008

This may be an obvious question....BUT I have never heard of this...

Of all the things I was at a school function for my daughter tonight and 2 other mom's were sitting next to me talking about Ebay--lol. The one told us of how she used to do pretty decent sales selling name brand, high-end children's clothing. She said it became too much for her with alot of recent returns due to buyer's ordering the incorrect sizes, or not liking the fit, etc. She said with the cost increase to sellers to run the auctions, pp fees, etc., it just wasn't worth her time anymore+++also concerned, as we all are about the recently implemented feedback changes. Apparently, she had a few experiences with buyers leaving her the "neutral"--now translating to NEGATIVE feedback due to--"loved the item but unfortunately it didn't fit and had to return" and "the blouse colors did not exactly match the pair of slacks I was hoping to have my daughter wear it with"--OMG!!!

She had about 7 of these in less than 3 weeks time and her feedback went to hell--just said it wasn't worth her time--all this bullcrap!!!

Here's the thing..... She said she couldn't believe this, but she closed her paypal account completely after all transactions were completed and closed her ebay account. 2 weeks after doing so, she said she got an email from a buyer stating they too decided an item wasn't the proper fit and demanded to return it. She said they were very rude and told her they had already contacted paypal about a refund---scratching her head because her account with paypal was closed--ebay too. The customer said they saw she was no longer a registered user but said Paypal told her that even though the seller no longer had their paypal account open, she could still do a chargeback and receive a complete refund--HUH??

She said she did not respond back to the buyer but rather called Paypal. Supposedly Paypal told her that...Yes, buyers can still file chargebacks even once your account is closed as they have your bank account info., etc stored in their files. In a case where the buyer is granted the chargeback, the money will be taken from your bank account on file with paypal--whether your account is currently open or has been closed===supposedly it is somewhere in that Paypal small print.

My question...Is this REALLY true?? I've never had to close my paypal account for any reason--have had it since 2002. I sell country primitives and have never thought about this. BUT, after hearing this, I started to wonder...what if I decide to stop selling and close my accounts...can paypal legally issue refunds to past buyers if they file disputes later...you know, they may decide something doesn't match---lol

If this can really happen, that would be an unexpected hit to the bank account, at any time. Any Thoughts???

MasterChief · #2 06-04-2008

:Shrug:
If you close a paypal, close the connecting bank account too. :o

jscan · #3 06-04-2008

yeah because just closing your pp account isnt enough, they'll still pinch your pocket.

jollybee · #4 06-04-2008

My thought exactly!!! But how crappy...Now, if you just want to stop selling--even if you've never had 1 single problem, under all these new "for the buyer rules and their crazy antics", you have to close your very own personal bank account just due to fear some crazy buyer will do a chargeback well after your off ebay completely!!!

What a crazy thing--go through all the hassle of losing your many year old personal account, new checks, set up direct payment withdraws if any are in place--etc., etc. Such a shame...especially for the honest and upright sellers left:(

zymo · #5 06-04-2008

I don't know about closed accounts, but on limited accounts if you are in the red, paypal just sends emails trying to get you to make deposits into the account or for a letter asking permission to charge your CC or raid you bank account. I just ignore the emails and they have not tried to take money involuntarily.

GreenBean · #6 06-05-2008

If there is a chance of paypal getting to your bank account, you advise your bank to STOP them. Cut the link with paypal via the bank's services. Also do not forget that closing an ebay account can take months to happen especially if it's a seller's account.
Bottom line: cut any banks links & BLOCK paypal.

jscan · #7 06-05-2008

even if you ask you bank to block paypal from making any withdrawals its still touch and go, its best to close the acc, then repopen a diff one with the same bank if needed. you wont usually require a heap if ID either since you were a previous customer.

GreenBean · #8 06-05-2008

I guess that could happen. But if you have a good relationship with your bank, they should
help. I have done this even in OZ with no problems.

**aspkin** · #9 06-05-2008

That's why it's best to REMOVE your bank account from Paypal if you can before you close your account down. That's saved me a couple times. The only thing is if you have your correct information in Paypal, correct address and name, even SS# expect to have collections agencies wanting their money.

But yes Paypal can do this. Your account is never really closed with them.

Cheers!

Quote:

Originally Posted by jollybee

This may be an obvious question....BUT I have never heard of this...

Of all the things I was at a school function for my daughter tonight and 2 other mom's were sitting next to me talking about Ebay--lol. The one told us of how she used to do pretty decent sales selling name brand, high-end children's clothing. She said it became too much for her with alot of recent returns due to buyer's ordering the incorrect sizes, or not liking the fit, etc. She said with the cost increase to sellers to run the auctions, pp fees, etc., it just wasn't worth her time anymore+++also concerned, as we all are about the recently implemented feedback changes. Apparently, she had a few experiences with buyers leaving her the "neutral"--now translating to NEGATIVE feedback due to--"loved the item but unfortunately it didn't fit and had to return" and "the blouse colors did not exactly match the pair of slacks I was hoping to have my daughter wear it with"--OMG!!!

She had about 7 of these in less than 3 weeks time and her feedback went to hell--just said it wasn't worth her time--all this bullcrap!!!

Here's the thing..... She said she couldn't believe this, but she closed her paypal account completely after all transactions were completed and closed her ebay account. 2 weeks after doing so, she said she got an email from a buyer stating they too decided an item wasn't the proper fit and demanded to return it. She said they were very rude and told her they had already contacted paypal about a refund---scratching her head because her account with paypal was closed--ebay too. The customer said they saw she was no longer a registered user but said Paypal told her that even though the seller no longer had their paypal account open, she could still do a chargeback and receive a complete refund--HUH??

She said she did not respond back to the buyer but rather called Paypal. Supposedly Paypal told her that...Yes, buyers can still file chargebacks even once your account is closed as they have your bank account info., etc stored in their files. In a case where the buyer is granted the chargeback, the money will be taken from your bank account on file with paypal--whether your account is currently open or has been closed===supposedly it is somewhere in that Paypal small print.

My question...Is this REALLY true?? I've never had to close my paypal account for any reason--have had it since 2002. I sell country primitives and have never thought about this. BUT, after hearing this, I started to wonder...what if I decide to stop selling and close my accounts...can paypal legally issue refunds to past buyers if they file disputes later...you know, they may decide something doesn't match---lol

If this can really happen, that would be an unexpected hit to the bank account, at any time. Any Thoughts???

jollybee · #10 06-05-2008

FYI... I just had to know this for myself. Being still a "legitimate" paypal user, I gave them a call--love to talk to that wonderful customer service rep--ROFL!!

Being a seller, it had me concerned. PP's response to this was....any buyer complaint/dispute filed--for ANY reason i.e.; Not as Described, Not Received, Counterfeit...Whatever, MUST be filed within 45 days of the original payment transaction. IF the buyer files it after the 45 days, PP will NOT investigate it. They said it is in the Contract's print. HOWEVER, they pointed out that even though they say they do not investigate it at that time, (Gotta Love PP's Contradictions) they still reserve the right for the next 180 days to begin an investigation if they later determine that this complaint should be examined.

I THINK I feel better about this now(???) I guess it depends on what reason "THEY" determine it should be looked into. When they tell you even for counterfeit goods after 45 days they won't investigate, what reason could possibly be left?? IDIOTS!!!

I have come to the conclusion that "problem" sellers have usually closed or had their acct's limited with no funds in it by this time (45 days) and PP knows that if they grant the chargeback to the buyer --THEY are paying it out of their pocket, so the buyer is permanently screwed no matter what after 45 days.

Lisa B · #11 06-05-2008

No need to really close your bank account, like Greenie said, you need to have a good relationship with your bank and fill out the necessary paperwork with your bank thus preventing PayPal or eBay from trying to withdraw funds from your accounts.

Worked for me.

GreenBean · #12 06-05-2008

Thank you. Here's a hint : IF there is any problem with paypal and you know that you have a bank account linked BEFORE you get proactive and tell
the bank to cancel the link. Then it saves you grief

{really wanted to say something else but...}
So in that file where you have all your ebay/paypal information (you know that
file you keep?) you have a column marked Contact Bank re paypal etc. It makes
one less loose end.

Raul4510 · #13 06-20-2008

Just make sure you remove your bank account and credit card information before you close your Paypal account.

screwedagain · #14 06-21-2008

Just a question incase i run into this problem at a later time. Say i get limited by paypal and in result, I shut down my bank account associated with this paypal accoutn. And after i shut down the bank account, a buyer files a chargeback but they can't get money out of my bank becuase it doesn't exist no more. Would paypal be able to get my real info from my bank to cross reference the info i gave paypal. Don;t really want to waste time in court to fight fraud charges.