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buyer threatening me with paypal chargeback

Discussion in 'BlackHat Lounge' started by supermanden, Dec 10, 2014.

  1. supermanden

    supermanden BANNED BANNED

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    I sell local SEO service and have had a client on a monthly subscription of $300/month for 3 months.
    14 days ago he paid for the third month and I spend his payment on guest posts and articles the same day.
    2 days ago (12 days after payment) he said he didn't want to pay for the third month and demand a refund.

    I already spend the money, I do not offer refunds (also stated on my website) and he didn't tell me he wanted to end the subscription before he was billed.
    I told him I can't offer him a refund, but now he says he will chargeback if I don't refund him - I do not wish to risk losing my business paypal account. What can I do?
    It's totally unfair, he is even seeing good rank boosts this month and I keep just 10% of the payment myself.
     
  2. Masterptc

    Masterptc Regular Member

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    Last time i tried disputing a chargeback i lost and was charged a $20 fee by paypal.
     
  3. asap1

    asap1 Jr. VIP Jr. VIP

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    Its sad to say but your pretty much in a situation thats already lost.

    If he charges back its a 99% chance he will win.

    But dont worry about losing your paypal account one dispute wont do much.
     
  4. IceHD

    IceHD Jr. VIP Jr. VIP Premium Member

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    Paypal doesn't support refunds for virtual goods.
    Once had this problem and 4 minutes on the phone with paypal support solved the issue after I mentioned Virtual Goods.

    You should worry when you have multiple charge backs.
     
  5. Nut-Nights

    Nut-Nights Jr. VIP Jr. VIP

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    Call paypal and tell them about your situation and buyer intention.
     
  6. nonai

    nonai Power Member

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    at this point its not up to paypal, if he charges back paypal will just take the money from your account + $20 processing fee.
    I would neg seo him if he charges back. but thats just me. yeah, thats not cool dont listen to me.
     
  7. mugskinned

    mugskinned Newbie

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    I hope that this gets resolved. I am watching this thread for future reference. I hope you will post what you will do. Although, in my case, I remind the customer re the terms of my service and what the service has done, so far. I will also send an accounting of how his money was spend. If that still does not pacify, I will offer a percentage of the remainder of the money. In short, do anything to avoid a chargeback. :( That is just me, though.
     
  8. Adrian79

    Adrian79 Junior Member

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    Find out what he's unhappy about.

    Find out why he's really doing this and then try to come to a resolution.
     
  9. abhi007

    abhi007 Jr. VIP Jr. VIP

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    is it mentioned on your website that you do not offer refunds?

    maybe try showing paypal what you have mentioned?
     
  10. Jezzaa

    Jezzaa Registered Member

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    Refund his money back and blast his site with porn.
     
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  11. Andrew Scherer

    Andrew Scherer Jr. VIP Jr. VIP Premium Member

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    Your reputation is worth more than the amount you're disputing about him with.

    It's better to give him the refund and scratch it off as the cost of doing business.

    I wouldn't consider a customer to be a customer unless they are 100% satisfied.
     
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  12. BHopkins

    BHopkins Moderator Staff Member Moderator Jr. VIP

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    Not a whole lot you can do, just eat the cost and move on, it's not worth your day thinking about it.
     
  13. GreenGoblin

    GreenGoblin BANNED BANNED

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    its nothen u can do, paypal isn't a legit merchant account...i learned this the hard way, paypal has a merchant account that processes payments for them, and paypal distributes the payments in there system, so when someone files a chargeback against you, they are filing a chargeback against whoever paypal merchant processor is and not paypal itself.

    So u will lose a chargeback everytime, this is why i preach daily when u selling SEO services ...always use a real merchant processor like authorize.net which is a gateway but they recommend and set you up with merchant processors also.

    This way you only dealing with the banks and not paypal, because with banks lets say someone files a chargeback well then u have 14 days to notify your processor that the consumers is doing fraud and u have to prove it this is why they always want u to have a refund policy on your site as well as a TOS it just makes there job easier to to call the bank and say my client has a policy this is what it is....those funds to be reversed today.

    paypal is not gonna do that for u...they will just deduct the funds from your account no questions asked.
     
  14. gazmo

    gazmo Junior Member

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    I'm honestly considering only accepting bitcoin from now on, or at least giving good discounts for this.

    Obviously over the internet you lose 99% of your customers, but I'm considering this for my local business where I actively communicate with customers and have a good reputation.

    I've actually never suffered from this, but the sheer amount of vendors screwed over by paypal is just astounding. I'd suggest offering discounts when your customers avoid paypal and go for either one of the suggestions above (which I'm not familiar with) or cryptocurrency.

    As for the current situation - there might be a small chance but I wouldn't keep my hopes high...
     
  15. sssteve

    sssteve Registered Member

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    Keep calm, try and resolve the problem with buyer.
    Let the buyer get mad with you if you like, but you must keep calm.
    Let your buyer threaten you, still keep calm and nice.

    Let him know the terms of your service, and let him get mad again.

    If he does a chargeback, you will have the option of submitting proof, if you communicated calmly
    and he got mad with you, then you have a lot of proof to submit to paypal to back your case.

    Phone Paypal, they will try to help, they are OK on the phone.

    You can only stick to the rules and play it their way.
     
  16. SEOPLUS+

    SEOPLUS+ BANNED BANNED

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    Paypal will not accept dispute over digital services.

    So, send them mail with all your service details and be relaxed.
     
  17. Douglife31

    Douglife31 Junior Member

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    I have been in these situations before and I found out that calling paypal ahead of time and letting them know about the dispute goes a long way. They are able to note in your account about the issue and I've even had them give me advice on how to make sure I didn't get screwed.

    Save all emails with this client (hopefully you never deleted any)
    Print out any records you can think of and send them all in one envelope to the customer, save a copy for yourself(make sure you get some form of tracking on it)

    And as I saw already, if he does charge back, just bite the bullet, pay it off and spam his site with things that will quickly remove it from the search engines.
     
  18. NetCrime

    NetCrime Regular Member

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    Briefly expalin him that you already did provide services for that charged money and he already received rank boost and if he charges refund you will be forced to "refund" your provided services with ton of porn links that will lead his website to deindex.
     
  19. K.H.R

    K.H.R Jr. VIP Jr. VIP Premium Member

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    Few days ago my Client also disputed $250, I submitted all the proof & I own the case. It was also a Virtual Work.
    If you have any proof, you can submit them. You should have your Service Policy, So no one can charge back unfairly.