Paypal Dispute: Unauthorized Payment - WTF + BH?

[snoozebot]

Since there is no section for 'losing money', I'm posting this here. Mods please move the thread if I'm in the wrong place.

I just recently received an email from Paypal stating that an unauthorized payment was made to my account for the purchase of one of my products. The owner of the credit card has made a compliant with his credit card company that the payment was made without his authorization; the funds are now temporarily on hold.

I looked around a couple of forums and read that there's a very good chance I won't get the money back as the product in question is a digital product, and there's no way I can provide shipping details for digital products.

Any ideas on how to resolve this? Should I gladly refund?

Anyway, it got me thinking. What if I purchased digital products and start a Paypal dispute for unauthorized payment and get back all my money + the products? Can this work?

Any thoughts?

 

[Joak]

Since there is no section for 'losing money', I'm posting this here. Mods please move the thread if I'm in the wrong place.

I just recently received an email from Paypal stating that an unauthorized payment was made to my account for the purchase of one of my products. The owner of the credit card has made a compliant with his credit card company that the payment was made without his authorization; the funds are now temporarily on hold.

I looked around a couple of forums and read that there's a very good chance I won't get the money back as the product in question is a digital product, and there's no way I can provide shipping details for digital products.

Any ideas on how to resolve this? Should I gladly refund?

Anyway, it got me thinking. What if I purchased digital products and start a Paypal dispute for unauthorized payment and get back all my money + the products? Can this work?

Any thoughts?

Actually quite the opposite happened to me. I wasn't satisfied with one digital product and opened a dispute. Guess what? PayPal told me it's a digital product so we don't cover it so at the end I was the one who got screwed...lol. I'd be surprised if PayPal did the opposite with you and refunded the buyer's money.

 

[iseegreen]

yeah

but if you talk to paypal

they always tell you to pay with a credit card and not paypal funds

because as soon as you chargeback the credit card - paypal pretty much assumes they are right - the person charging back

can of worms using paypal - but it is convenient.

 

[Aaric]

As the buyer filed it as " unauthorized transaction " then most probably he will get it back on CC. He would not get refund if he was saying "he did not get products or product did not work as told".

 

[carrepairs12]

Anyway, it got me thinking. What if I purchased digital products and start a Paypal dispute for unauthorized payment and get back all my money + the products? Can this work?

Any thoughts?

A retard born everyday

 

[Aaric]

A retard born everyday

He deserved it whatever happened to him.

 

[roamer]

There's a loophole in PPal's policies that lots of scammers are exploiting. Won't go into detail here (there surely is more info elsewhere here at BHW). Just make sure that it's clear from the beginning that 'this is a digital product, the method of delivery is digital (downloadable product); no copy in any physical medium (CD, DVD, etc) will be delivered.

And again make it clear just before payment is sent and after that too. 'The product will be delivered digitally as a download blah blah".

That way - and unless you offered a money back warranty, or a 100% satisfaction guarantee- you have a way to prove to PP that the customer is acting in bad faith.

Hope this helps OP and other peeps too.

 

[youngguy]

A dispute is different from a chargeback (fraudulent purchase) guys PP can do nothing for you in this case.

 

[KlaAz0r]

first, paypal sucks

that is a fact,

but the problem paypal has, it works with CC's and CC's have laws etc. around them to protect you. and Paypal needs to be on the site of the CC company * so with the buyer)

you can only refund there is not much you can do about it ; (

 

[eqsurplus]

I've been selling digital products a long time and finally got fed up with this exact thing a couple of months ago after being ripped off on valid purchases that the buyer didn't dispute but Paypal thought it best to refund their money.

I now require and internet connection to use the software they download and have it contact the mother ship when it starts. At least this way I can cut them off in instances like this.

 

[WebmasterDeluxe]

I used to run a VERY successful HDTV accessory website...people pulled crap like that ALL the time....Claim stuff as lost etc....We got screwed by Paypal for thousands over the years.

 

[Monrox]

A dispute is different from a chargeback (fraudulent purchase) guys PP can do nothing for you in this case.

Very true.
There is a PP dispute and there is a CC chargeback. Delivery of digital good can't be disputed easily so the seller gets to keep the money usually.

But the buyer can go to his bank and simply tell them not to approve the CC transaction to PP. So PP will not get any money from the bank and subsequently will reverse the payment to the seller.

It holds true for any credit card payment, I can stop the payment to the grocery shop if I want to and my bank will be forced to oblige. The seller can then file a dispute with MasterCard, Visa and so on, or sue me for the money.

 

[ahmeda2289]

There is nothing you can do about unauthorized payments so the best thing to do is just give the refund back so you can just skip all the headaches of going back and forth with the idiots at payal

 

[snoozebot]

A retard born everyday

I'm talking BH. I'm talking SCAM. And in that context, that's not so retarded.

A dispute is different from a chargeback (fraudulent purchase) guys PP can do nothing for you in this case.

I just realized that. I got another mail saying 'your buyer has filed for a chargeback claim'.

There is nothing you can do about unauthorized payments so the best thing to do is just give the refund back so you can just skip all the headaches of going back and forth with the idiots at payal

That seems like the only option.

Thank you all.

 

[carrepairs12]

I'm talking BH. I'm talking SCAM. And in that context, that's not so retarded.

nah what your talking about is being a prick, some people make a living off of digtal stuff, then people like you want a refund, even if its a good product. karmas a bitch

 

[snoozebot]

nah what your talking about is being a prick, some people make a living off of digtal stuff, then people like you want a refund, even if its a good product. karmas a bitch

People like me? Just so you know, I've never in my LIFE asked for a refund for a digital product nor have I started a paypal dispute or chargeback. I was merely putting the idea on the table. Maybe it will lead to a discussion. Maybe this could really work. Maybe I will scam the fcuk out of a perfectly honest person. Maybe I will become very rich, or very poor. Maybe someone will, if not me. This is BHW - Deal with it!

That said, I don't see any option for a refund. So if I cannot refund and I have no proof of shipping, should I just 'accept liability' for the transaction and pay the fee ($10 I think)? I do have proofs that the digital product was in fact delivered to the email address specified by the buyer.

 

[Monrox]

snoozebot, there is a way to protect yourself from chargebacks but you will need to adjust your business model accordingly.

Chargebacks can be filed no later than some period after receiving the CC statement, something between 40 and 60 days i don't remember. If you can, try to keep the buyer 'occupied' like sending him three times some bonus every 20 days or so. Make it sound good (it doesn't have to be actually so) and whith each bonus remind him there is another coming in 20 days. Once you're safe you can go for that hooker or whatever you like to spend your money on

 

[giftedwon]

there should be a rule. .if the 3 digit code matches thats it. you matched the code so the charge is valid.

 

[eBayMafia]

There is no system in place for PayPal dispute on your behalf to Mastercard or Visa, whom are pretty much pulling the funds from PayPal without PayPals consent. Just refund and move on, as much as I hate saying that.

 

[googlemonster]

Paypal is a cnut. I try whenever possible to bum rape that 'lot'. Scam Paypal back, I mean i have a dispute now for a laptop, and gaypal is 'investigating' it! Woo fucking hee doo, some cubical jockey somewhere in America or India idk is deciding whether I get my money?