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Paypal: Is this qualified for seller protection?
 

I sold an item and sent it out with signature confirmation.Weeks later, this person filed a claim with their bank saying the item is damaged, blah blah blah... Paypal now took the money from my account and leave me with a negative balance and they also removed the tracking number I have posted as well. When I called in, the rep said that they are disputing the transaction right now. I asked what happen if they were to loose the dispute, he replied " then you will be stuck with a negative balance". WTF? can someone please tell me how to deal with this case? :mad::mad::mad::mad:

Re: Paypal: Is this qualified for seller protection?
 

To be clear, so what happened is not that they filed a PayPal claim, but a chargeback?

Re: Paypal: Is this qualified for seller protection?
 

usually when a dispute is filed, you get a chance to defend yourself by providing evidence??
Did you leave it to long and was escalated?

Re: Paypal: Is this qualified for seller protection?
 

Yes jeff, they filed a chargeback with the bank. Bunneh, I have no other evidence beside the tracking number and signature confirmation. I had provided those and I also called paypal to see if they needed anything else. Paypal had temporary released the money to me and they assured that I'll be cover..well at least until today when I spoke with another representative after my balance went negative. This person never returned the item to me.

Re: Paypal: Is this qualified for seller protection?
 

Here is the thing... PayPal seller protection DOES protect you in the event the item is not received (as long as it is shipped with tracking and signature confirmation if the dollar value is a certain amount) or is lost in transit, but I don't know if they will cover you if the buyer just claims the item is damaged.

When the buyer filed the claim, did you get a notice from PayPal? You situation is a bit out of the ordinary, because I have never had them remove tracking numbers and I ALWAYS get a notice if a chargeback is filed, although thankfully chargebacks are rare.

My guess is the buyer received the item and damaged it themselves, most likely due to carelessness and now wants somebody else to pay for it. I say that because you said this was filed WEEKS after they received the item. When I order something, I may not use it immediately, but I always check it within 48 hours. I think that most people do. The only exception would be when buying a gift.

Re: Paypal: Is this qualified for seller protection?
 

Yes Jeff. I did get a notice and I did responded within 2 days. Even if the item is damaged, the buyer should be obligated to return the item to me. This is no difference than stealing through chargeback with the bank protection. If anything, I believe paypal should be the one taking the loss for allowing such customers signing up with them.

Re: Paypal: Is this qualified for seller protection?
 

PayPal won't take the loss for allowing that person to sign up, that is a nice FANTASY, but it will never happen.

And I hate to tell you this, but if you lose the chargeback dispute, they will most likely charge you $25. It sucks. It happened to me a couple of times. They don't charge you if you win, of course, or if they determine it is covered under seller protection.

All you can do is wait to see what happens and complain to PayPal if it does not go your way. But I wouldn't write an OUTRAGEOUS complaint, I would just stick to the facts and tell them you feel that it it unfair, which it is, of course.

If it were up to me, NO buyer would be able to file for a chargeback unless they took the matter up with PayPal first. Chargebacks were meant to be a LAST RESORT, not the first step in the complaint process. But a lot of buyers know the banks will bend over backwards for them, so it is easier than arguing the point with the merchant.

Re: Paypal: Is this qualified for seller protection?
 

pay pal will never force a buyer to return an item though.

Did you make any contact with the buyer at all?

Depending on the value of an item, I usually consider heavier (lol) customer service.

I also keep a record of the tracking number on my own files for use in the above circumstances.

Re: Paypal: Is this qualified for seller protection?
 

Paypal DOES NOT protect you against a chargeback. I had some f*cktard file a chargeback on me before after 4 months of having his items. I even had signature confirmation on it and he told his card issuer that he did not receive it. I had to go through Paypal to submit the information of course...and they dont fight on your behalf! They say they will dispute the chargeback for you but its all a bunch of bull. 9 times out of 10, buyer files a chargeback and youll be f*cked. Paypal docks YOU for the amount of the chargeback!

Re: Paypal: Is this qualified for seller protection?
 

So tracking number, signature confirmation, and insurance doesn't mean jack when we are dealing with customers through paypal... Thank You guys for all your comments. I'll wait this out and update you guys with the result of the case within the next 2 months.

Re: Paypal: Is this qualified for seller protection?
 

Sorry, I know this is a very old thread but here is the outcome of this case for those who are in the same situation... PP favored the buyer and I am now out of $280...can't claim with usps insurance for damaged good since it has been more than 30 days...nada...

Re: Paypal: Is this qualified for seller protection?
 

That sucks. But it is just a part of doing business online. Unfortunately, this happens every once in awhile - it HAS happened to most of us. Thankfully, these are fairly rare.

A few years ago, some people tried to start up a company that merchants would pay to belong to and would report any customers who filed a chargeback. Merchants who were members could run their sales through the database to see if their customer had ever done this to another merchant. But they had to shut it down, the government said it was illegal - in violation of the Fair Credit Reporting Act, or something like that.