posted on March 30, 2001 12:30:05 PM
Ive heard this term often but what is it? I'm getting leary about Paypal with all the neg. things I hear about them although I myself have not had a problem with them in almost 2 years.
posted on March 30, 2001 12:37:19 PM
A chargeback is when a customer disputes a charge placed on their credit card. It the customer wins the dispute, the money is credited BACK to their card, and debited from the merchant's account.
There are many reasons for it:
1) The customer does not recognize a charge on their statement, and believes that a fraudulent charge was placed;
2) The customer never receives merchandise they paid for;
3) The customer DOES receive the merchandise, but is not satisfied with the quality.
4) The customer is dishonest, and tells the credit card company they did not receive the merchandise, when in fact they did.
Bottom line is they file a complaint with their credit card company, the credit card company investigates, and the credit card company accepts or rejects the chargeback. If it is accepted, the money is taken back out of the merchant's account PLUS a chargeback fee, which is usually around $25.00.
In certain instances, a chargeback is AUTOMATICALLY granted. A good example is when the customer claims they never received goods, and the merchant sent the goods to an address OTHER THAN the customer's billing address. Even if a merchant has proof of delivery in that instance, the chargeback will STILL be granted, since the item was not shipped to the customers billing address. It is their word against yours, and in this case, the credit card holder's word is priority.
[ edited by kidsfeet on Mar 30, 2001 12:40 PM ]
posted on March 30, 2001 12:41:53 PM
Thanks! But one more question..how easy is it for people to do this? I mean it makes me nervous to be signed up with so many online payment services. Doesnt Paypal have chargeback protection? Or is it Billpoint?
Thank you for posting that information. You are dead on.
You can protect yourself, and eliminate liability for charge backs, by following the details of the Seller Protection Program.You can be covered against a charge back provided that you follow the rules (this is, to the best of my knowledge, a relatively unique aspect of our service compared to many other payment services)
Most transactions occur without an issue, but the ones that draw attention are the ones that go array (nearly 200,000 transactions are processed daily).
posted on March 30, 2001 12:49:41 PM
And one of those "rules" is to ship to a verified shipping address correct? I read that I cant be covered under the seller protection policy if there is no verified shipping address.
Correct. You can ship to any address you desire, but we can only extend protection from charge backs if it goes to the confirmed address (this is the address that has passed an address verification screen).
posted on March 30, 2001 01:04:52 PM
katmommy, I too have chosen to stay with paypal. I am not signed up with any other online payment plan and do not intend to.
Since I started on this board last year, I have seen a few online payment plans come and go. First they are raved about then the truth comes out and they are gone. Paypal is still there.
The biggest problem people had with paypal was that the free lunch closed and a pay for the service you receive took over.
Does paypal occasionally make mistakes or have problems? Yes. Doesn't every business, or for that fact, everybody?
IMHO, the service we receive, if we use a little thought and common sense, far outweighs any problems.
Yes, I do work for PayPal. I am the only member of the company that is authorized to post in a public forum (well, there are actually three, but I am the one you will see out there).
