chowyoungfat
Regular Member
- Nov 6, 2008
- 272
- 473
I might be wrong but if you do that doesnt your paypal balance become negative and then paypal claims you owe them money?
The charge back is passed on to the seller so their account will be debited. It should only be used as a last resort and for genuine reasons.
Here is some direct info.
Source: https://www.paypal.com/au/cgi-bin/webscr?cmd=xpt/seller/ChargebackRisk-outside
What is a chargeback?
A chargeback occurs when a buyer asks their card issuer to remove a charge from their card statement. The card issuer will ask the buyer to provide an explanation about why they are disputing the charge.
Two common reasons for reversals or chargebacks are:
A buyer's credit card number is stolen and used fraudulently
A buyer makes a purchase, but believes that the seller failed to fulfil their side of the agreement (e.g. did not post the item, posted an item that was very different from the seller's description, or the item was damaged when the buyer received it).
How does PayPal notify a seller when a chargeback has been issued against them?
When PayPal is notified that a buyer has filed a chargeback against a seller, PayPal immediately emails the seller. Then, the seller can log in to their PayPal account and go to the Resolution Centre to monitor the status of the case and provide information to help resolve the matter.
How can a seller recover funds when a chargeback occurs?
When a chargeback occurs, the money that is subject to the chargeback is deducted from PayPal's bank account. In turn, PayPal places a temporary hold on the same amount in the seller's PayPal balance (i.e. the funds are frozen).
The seller and PayPal can work together to dispute the chargeback with the buyer's credit card company. While the chargeback is being disputed, PayPal will debit the seller for the amount in question. If PayPal and the seller ultimately win the chargeback dispute, the credit card company will reimburse PayPal for the chargeback and PayPal will transfer the recovered funds back to the seller. Depending on the credit card company involved, the process may take up to 75 days. In a dispute over a chargeback, the decision is ultimately made by the credit card company and PayPal cannot control the outcome.