Reversals AND Chargebacks with PayPal

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Well here we are, after many tolerable years of using the online payment system that is PayPal (a financial service which refuses to register in the UK with the FSA and therefore be bound by the laws of all UK financial institutions) I wake up to find some 700 UK pounds removed from my PayPal balance.

NEVER ACCEPT PAYPAL PAYMENT WITH UNCONFIRMED ADDRESS REFUND THE PAYMENT IMMEDIATELY.
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Here is a classic example of why you should do this...

The first one is a reversal. Now unlike a reversal where either PayPal informs you they are doing a random check on the transaction and have personally reversed the funds and placed it in a dispute of somesort this was a reversal with NO EXPLANATION OR MECHANISM FOR ADDRESSING THE REVERSAL OF PAYMENT SITUATION. Now of course buyers are at liberty to open a dispute and reverse a payment also but this is par for the course and unless you are selling goods not as described or just defrauding people then this is not an issue for honest traders like me on ebay. PAYPAL CAN REVERSE PAYMENTS AT ANY TIME FOR AND GIVE YOU NO REASON OR FACILITY TO RECOVER THAT REVERSAL WITHOUT WARNING.

After an extremely annoying 20 minutes on the automated system I finally get to speak to a human being on PayPal telephone contact number given. They explain that the transaction may have been reversed due to either insufficient credit/balance when PayPal went to withdraw the funds. Some other gobbledeegook about forms not matching up. Anyway the real point is IN THIS SITUATION YOU CAN NOT SPEAK TO ANYONE DIRECTLY ABOUT A REVERSAL WITH NO MECHANISM FOR RECOVERY OR ANY EXPLANATION and to make matters worse the simple fact that you are given a blind email address to send YOUR OWN EMAIL to 'reversal @ paypal.com' Now forgive me but why the hell am I paying not only ebay's fees and commission on each sale but a seperate 3.7% for every penny I receive by the self imposed method of payment called PayPal (you can no longer trade certain items unless you accept PayPal unconditionally) when there is ZERO SUPPORT and ZERO MECHANISMS to help recover my money for UNDOCUMENTED REVERSALS. I know for a fact the goods were delivered as just like me YOU SHOULD ALWAYS SEND items using a courier company that has a service for SIGNED FOR DELIVERY METHOD ACCEPTED ONLY FROM THE ADDRESS LABELLED ON THE PARCEL. Now I personally used Special Delivery by Royal Mail who happen to even give you a scan of the actual signature of the acceptee of the parcel at the actual address. However due to the address being unconfirmed I was not going to get anywhere unless the buyer sorts their PayPal affairs in order. The fact that although the purchaser was obviously not a scammer from their feedback AND they are a verified paypal user AND their ebay and paypal delivery address information is identical it's more than likely some 400 UK pounds is now down the toilet along with a beautiful Sony VAIO notebook.

CHARGEBACKS AND HOW TO DEAL WITH THEM
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There is a simple rule here you should always adhere to for all your trading on ebay,

FIRSTLY ONLY ACCEPT PAYPAL PAYMENTS WITH A CONFIRMED ADDRESS, this is all you require as a proviso of accepting anyones PayPal payment.

SECONDLY ONLY SEND ITEMS WITH A TRACKABLE AND SIGNED FOR METHOD (Parcelforce24/ Royal Mail Special Delivery or Recorded Delivery etc) AND KEEP EVERY RECEIPT/PROOF OF POSTAGE TO HAND FOR 100 DAYS.

Now be warned, some people will send you a confirmed payment from PayPal BUT will then put a note on the payment or message you and ask you to send it to their 'work address' etc. YOU MUST REFUSE THIS REQUEST INSTANTLY as if you do not send to the actual address on the PayPal payment for any reason you will not be protected at all for chargebacks.

When you receive a chargeback notification from ebay don't panic, just calmly investigate which item it is and then from your own files recover the proof of delivery for that order in question.Then go to your PayPal account and click on the 'resolve' option. In the proceeding form you will find an option to give tracking information. Now check with your courier of choice that the tracking code for these goods will confirm a delivery has been completed and the recipient signed for and then enter this tracking code and the courier company on the form. Also if you use Special Delivery you can see an actual scan of the physical signature given to accept the parcel. Copy the URL address for this item for use in the comments field to indicate that you know the item was delivered and that the signatory is actually of the same surname atleast as for the name given in the confirmed delivery address.

If you have followed my rules you  should never be liable for any chargeback (usually from members of ebay who become unregistered and try it on thinking you can't obtain their contact information anymore which you can. In the situation above I believe PayPal are legally liable to refund such monies they have removed from your PayPal balance and make sure you inform them that you know your legal rights in this situation.

SO TO RECAP...
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1. NEVER ACCEPT ANY PAYPAL PAYMENTS FOR ANY REASON FROM ANY EBAY MEMBER FROM AN UNCONFIRMED PAYMENT ADDRESS.REFUND ANY UNCONFIRMED PAYMENTS IMMEDIATELY!

2. ALWAYS SEND ITEMS TO THE 'CONFIRMED' ADDRESS ON THE PAYPAL PAYMENT OR REFUSE TO SEND THE ITEM AND REFUND THE PAYMENT IMMEDIATELY!

3. ALWAYS SEND GOODS BY A TRACKABLE METHOD WHICH REQUIRES A SIGNATURE FROM THE RECIPIENT AT THE ADDRESS ON THE PARCEL AS LABELLED AND KEEP ALL INFORMATION FOR 100 DAYS.

4. TO AVOID NEGATIVE FEEDBACK THAT IS UNWARRANTED (IE YOU HAVE STATED CLEARLY IN LISTINGS NO UNCONFIRMED PAYMENT ADDRESSES FROM PAYPAL ARE ACCEPTED) FILE FOR AN UNPAID ITEM AND SPECIFICALLY CHOOSE 'ITEM HAS NOT BEEN PAID FOR' OTHERWISE YOU MAY WELL GET NEGATIVE FEEDBACK, WON'T BE ABLE TO RESPONDE ACCORDINGLY AND EBAY WILL NEVER REMOVE IT.

Happy PayPal trading and be careful out there from Laptops Shop UK.

 

**NEWS** EBAY NOW REQUIRE THE ACCEPTANCE OF PAYPAL ON ALL LISTED ITEMS

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