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Paypal Took $20 FEE From Me For A Dispute ! Is this normal ?

Discussion in 'BlackHat Lounge' started by gmc93, Aug 3, 2017.

  1. gmc93

    gmc93 Junior Member

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    Hello,

    Some time ago (1 month aprox) i started selling some SEO PACKAGES with backlinks (web 2 + blog comments) . Had a nice success but I also had 2 Paypal Disputes (even tough I delivered exactly whats described in the packages + report + in time Ready Order ).

    The disputes were made as "Unauthorized Transaction" and as we all know , most of this kind of disputes are Won by the buyer (95 %). On my Site I Quote" NO REFUDS ARE GIVEN AFTER BACKLINKS REPORT IS SENT - Only if order is not ready in time" . Even tough i showed to paypal + I gave them the Backlinks Report they decided to be in favor of the Buyer. I said ok..... but is bullshit anyway . The buyer bought package for $25 (this money were refunded to buyer) + paypal took me $20 for the Dispute FEE. What's with this shit and why ? I had few disputes before and no fees were applied (not 20$) or procent of refunded payment. Paypal said to me this:

    "
    The disputed amount has now been debited from your PayPal account because of the following reason(s):

    • Intangible goods or services are not covered under Seller Protection
    In addition, a chargeback fee of 20,00 USD has been debited from your PayPal account.

    We understand that you may not have been expecting this case. If this debit caused your PayPal account balance to go negative, please log in to your account and add money to your balance.


    Thank you for your patience.
    "

    This shit happend to anyone else ??? Also, should I expect another fee for the other Dispute I have open ??? I have my paypal account for 5 years almost fully verified.... with all real details and shit and didnt have any problems like this ever. Why does this appear now ???
     
  2. morenox207

    morenox207 Junior Member

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    Yeah, when I decided to escalate it, Lost the dispute because transaction was reversed from bank as it was reported as stolen card

    They charged me for investigation cost and ton of gibberish $10

    It really sucks
     
  3. SEO

    SEO Jr. VIP Jr. VIP

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    It's a chargeback fee. Very common in the credit card processing industry. It sucks, but there's nothing you can do once you've lost a dispute. Don't rack up too many of these or your account can be closed. Sorry man :-(
     
  4. morenox207

    morenox207 Junior Member

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    Experiences like this have taught me that is best to avoid paypal for selling.

    But pay by paypal if buying lol

    Sad but true
     
  5. SEO

    SEO Jr. VIP Jr. VIP

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    For what it's worth, chargebacks exist on all merchant accounts, not just PayPal. Here they are at:
    Digital product chargebacks are often settled in favor of the buyers. Proof of delivery is often difficult if not impossible, IP addresses and download logs are basically never enough. PayPal is definitely more unfair (they kind of go blind once a digital product is involved), but pretty much any processor will give you a very hard time for digital products.
     
  6. morenox207

    morenox207 Junior Member

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    Well while this is true, for digital products, or for anything if possible, BTC seems like the only way to go. If you want to sleep with no worries about chargebacks

    Unless is someone I know, I usually ask for BTC on any products or services over $100 until they're proven safe clients

    Anyway, Cheers and watch out for these scammers... they're getting more sophisticated in the way they work
     
  7. MTUser2010

    MTUser2010 Jr. VIP Jr. VIP

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    This looks like stolen CC fraud to me. Think about it. If someone was legit and used your service he or she would complain to you first about what they received, giving you a chance to fix a legitimate problem. If the buyer didn't complain, he was happy with what he received, because he received it for free, using a stolen card and paypal as a processor. The owner of the card when she sees the charge didn't contact you as the owner never made the charge in the first place.She simply called the credit card company and reported it as an unauthorized charge.

    Think about this too. If you are advertising an SEO service, some customers are total black hat, using stolen credit cards and screwing over anyone and everybody.
     
  8. super11

    super11 Jr. VIP Jr. VIP

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    Ya, the fee is $10 per dispute. So, if there were 2 disputes, you will be charged $20.

    This thing is a sucker. Whenever I try to dispute the same with them, they tell me that they get charged a lot more and they only pass the fraction of the fee which is $10 to me.
     
  9. SEO

    SEO Jr. VIP Jr. VIP

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    Unfortunately, it's not always this cut and dry. A lot of customers know how credit cards work really well, so they know when they have high odds for a chargeback working in their favor.

    It's no different than the customers that know how to cheat the "no questions asked" refunds on digital products like eBooks. They know they have the product, and there is no way to give it back. They just need to say they're dissatisfied and boom, free eBook.

    You have a great processor then. The fee is almost always $15 - $25 (you can see from the links I provided in a previous reply). I believe it's the acquirer/processor that sets the fee, but they have to pass some portion of it on to the card brands.
     
  10. techbee

    techbee Newbie

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    I say paypal is stupid now. Even me, I have this dispute that they did not processed.
     
  11. mystwoman

    mystwoman Newbie

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    intangible goods are not offered under seller protection they are for buyer protection?

    I review the agreement updates. I missed the part about ppal generating subfees. Wiw now I know why so many places disdain ppal , currently more and more.
    Looks like the 20 was to pay their operator to read the dispute and type the response.
    Sorry. Good to know.
     
  12. Brian Alexander

    Brian Alexander Junior Member UnGagged Attendee

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    Every payment gateway charges a chargeback fee of around $15-25 - this is not specific to PayPal.
    This is one of the cons of selling online.
    Anyways, in most cases the chargeback percentage will be less than 1 percentage.
     
  13. HoNeYBiRD

    HoNeYBiRD Jr. VIP Jr. VIP

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    Yes, but BTC transactions are irreversible, so you need to have some track record in case if you want the buyers go first. I wouldn't send you - not just you, but anyone who doesn't have a proven track record - a BTC payment before delivery, no offense. :) On the other hand PayPal is still far more popular than BTC, not everyone has or willing to buy BTC, so you might be missing out on sales.
     
  14. vinku

    vinku Jr. VIP Jr. VIP

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    BTC have problem - nobody normal want to send money using bitcoin oO. I've planned to use only BTC in my services but the problem is that I will loose 90% of buyers ;/
     
  15. Panther28

    Panther28 Jr. VIP Jr. VIP

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    Just take into consideration how many times this happens per 100 orders, do the math, and increase your prices to reflect this problem.
     
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  16. 4Panda

    4Panda Regular Member

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    Braintree, also a Paypal company, charges $15 fee for each chargeback. More pain without the good old Paypal buyer protection. I am thinking of supplementing Paypal with Braintree so people who cant pay on Paypal use em.

    I very much doubt Braintree's fraud prevention and other safety mechanisms are any better than PayPal.
     
  17. morenox207

    morenox207 Junior Member

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    Yes, I understand you and agree with you

    But hey, it's a matter of better safe than sorry, or a matter of how much you're losing when not allowing Paypal or any other processor with Non-Digital Seller protection

    Hope things were easier for us, maybe using a middleman, something like a freelancer page like fiverr or anything thats harder to issue a chargeback on

    Cheers!