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Paypal and my Fiverr-clone site

Discussion in 'Business & Tax Advice' started by Scorpion Ghost, Aug 24, 2015.

  1. Scorpion Ghost

    Scorpion Ghost Senior Member

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    Yesterday a guy bought a bunch of gigs on my fiverr-clone website. He paid with Paypal.

    One purchase was for some eBooks (PLR/MRR), and the rest were for social media followers/likes etc...


    The sellers for the social media services asked him about the URLs to send the followers/likes etc, and the seller for the eBooks sent the eBooks to the buyer. The buyer never sent the URLs to the sellers for the social media services...


    Now the buyer comes and sends the following message to the seller for the eBooks:

    "I received the information however when I tried to upload it to clickbank they rejected because of over used at this time I would like to request a full refund on all my purchase. I have notified Patpal and they want to give to the chance to return the money sent to you. Thankyou in advance for your swift handling of these matters."


    Now, the seller obviously can't refund any money to Paypal. And the seller never stated that Clickbank will accept those eBooks. I mean, that's like buying a car and then saying you can't take it to the race track. It doesn't make sense. And I'm not even sure if he meant that he wants a full refund for the eBooks (since he sent this in a personal message to that particular seller), or if he wants a refund for All of his purchases (eBooks and Social Media services).


    And my site's terms of service (which users have to agree to in order to register) states this:

    Refunds

    • [site name] does not refund payments made for cancelled orders back to your payment provider automatically. Funds from order cancellations are refunded to the buyer's balance as credit and are available for future purchases on [site name]. Funds returned to your balance from cancelled orders will not include processing fees paid.


    I'm stressed out about this situation. How should I proceed?
     
    Last edited: Aug 25, 2015
  2. blogzandstuff

    blogzandstuff Elite Member

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    It looks like a scam to me, if it's in your terms then you should be covered as he/she didn't read that.
     
  3. KraftyKyle

    KraftyKyle Jr. Executive VIP Jr. VIP Premium Member

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    I feel the same way. I'd let the buyer know that it is against the TOS to refund the full amount of the order with the reason he gave. You can also choose to offer a partial refund (given as a credit to his account for future purchases) as a reasonable person would understand why they can't just ask for a full refund and expect to get it. If he complains about a partial refund, I would still stay firm on the partial refund as if he is indeed just a scammer he won't even want the partial refund.
     
  4. Scorpion Ghost

    Scorpion Ghost Senior Member

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    So should I contact the buyer and tell him that he got the eBooks and it's not the seller's fault that Clickbank won't accept them? It was not mentioned anywhere that Clickbank would. And refuse a chargeback?

    Or give a chargeback for this offer (money back in site credit, not paypal), and see if the buyer requests his/her money back for all the other gigs too?

    And if it comes down to it that the buyer does a Paypal chargeback, will they back him or will my Terms of Service (which user agreed to when registering) cover me and get Paypal to refuse his chargeback?
     
  5. Scorpion Ghost

    Scorpion Ghost Senior Member

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    One last bump before going to sleep.

    I guess these types of problems can and will happen, so I'll have to learn how to deal with them.

    I hope some of the more experienced members in these types of situations can help me out with some information and guidance as to how to deal with this situation.
     
  6. Scorpion Ghost

    Scorpion Ghost Senior Member

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    Today I have to make some sort of move about this.

    Any advice anyone?
     
  7. GrahamCrackers

    GrahamCrackers BANNED BANNED

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    Sounds squeamish to me Scorpion.. I would give the option of getting a partial but no. No to full refunds.
     
  8. badaz

    badaz Regular Member

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    i would ask him to provide screen shoots that CLICKBANK didn't accept the ebooks provided full screen shoots ,
     
  9. Scorpion Ghost

    Scorpion Ghost Senior Member

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    Thanks for the advice guys.

    So the guy vanished. All day, no email no nothing.

    I wonder if I should be proactive and contact Paypal about the situation and explain pretty much what happened and that the buyer might request a refund, which they should refuse because he got what he paid for on one offer, and never provided the information needed to complete the other offers. And as per my site's Terms of Service, I will refund the buyer in site-credit for the offers that were never delivered (because he didn't provide the info needed), and I will not refund the order that was delivered with the eBooks.


    Still looking for more advice Blackhatters. Those experienced with chargebacks and refunds and scammers and paypal could surely be of help to me here.
     
  10. GiftGuru

    GiftGuru Supreme Member

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    Good luck... paypal usually sides with the buyer on that kind of thing
     
  11. Scorpion Ghost

    Scorpion Ghost Senior Member

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    Well that would suck.

    I've read online about chargebacks and paypal and stuff like that and I've got conflicting opinions. Some people bitch that paypal always sides with the buyer, some that paypal always sides with the seller. Although, more with buyers than with sellers.

    Thing is, from those 7 offers this guy bought, if it's all refunded I think I'm stuck with the fixed paypal fee, which would cost me $2.10 at the end of the day.


    But if that's the case, ALL those sites and places with "No Refunds Unless..." policies, how does that work? What kind of protection does that offer if Paypal always sides with the buyer?

    The buyer registers on a site and Agrees to terms that stipulate that no refunds shall be given, unless. So then that should be enough to cover the seller, and let the buyer beware. Of course, I'm not talking about scammer sellers having that and then running away with peoples' money leaving them unable to do a chargeback. But if the situation is clearly explained, then Paypal should listen to reason, and the Terms of Service the User AGREED on should play a role in a ruling that's on the seller's side.
     
  12. Reviewergal

    Reviewergal Junior Member

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    I've had PayPal side with me as a seller but that was a few years ago. I explained the situation when the customer tried to open a dispute, sent our communications, then called them to follow up. I never contacted PayPal until after the buyer started the dispute.

    As long as you can show that the gig never promised that the buyer could resell the product on clickbank AND that your ToS only gives the buyer credit on the site you will probably be alright. Don't stress yourself about it in advance. You've researched the situation, you have your communication with him documented, and you know the worst case scenario. It sounds like you have done all that can be reasonably expected and I do think should it become a real issue PayPal should side with you on this one.
     
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  13. Scorpion Ghost

    Scorpion Ghost Senior Member

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    Thank you, I appreciate that. Great thing to read :)

    I've done everything humanely possible, and the buyer has disappeared basically. Tomorrow I will cancel the gigs he bought and refund the money to his account in site-credit. I will also send him an email and tell him that because he didn't provide with the information the sellers could not deliver those gigs, and so we have cancelled those orders and refunded the money to him in site-credit, as per the Terms of Service (Here), which state: "This This and This." The money can be spent for any future purchases on our website. Contact us if you need any further assistance. Thank you.

    You know, something like that. And that's all I can do. We'll see what happens...

    Thank you Reviewergal