I used to use PayPal for my online transactions for my websites. But that all changed during this year when PayPal started assessing $20 per occurrence of chargeback fees. You see, it’s bad enough when you have to lose the amount of the item and the shipping charges due to a fraudulent chargeback, but then to be charged $20 in fees on top of it was just getting ridiculous.
PayPal says that they dispute chargebacks for you, but that’s not really the case. I found this out from a friend of mine that works for Visa. He said that PayPal does not dispute chargebacks much at all and instead just decides to refund a few sellers here and there to make it look like they do.
Other than that that’s all they do because he would take far too many man-hours to bother with this. The only thing that PayPal does is forward shipping confirmation information. That’s it and then it’s entirely up to the bank or issuing company to determine what the outcome will be.
99 times out of 100 they find for the customer unless there has been a pattern of chargeback abuse on behalf of the customer. So what that means is even if you sent an item to a buyer and you can prove with online tracking that it was delivered to them at their address they will still be refunded the entire amount and basically end up with a free item.
As his recession drags on more and more consumers are filing fraudulent chargebacks. It’s just like with any other crime in society they tend to increase big time during bad downturns. We are in what’s now called the great recession and this is causing a far higher increase in fraudulent chargebacks than ever before in history.
Now if you add to the fact that Congress just passed some laws that make it so banks can’t do the predatory charges they were doing on consumers with their credit cards before, this just makes this matter worse because now they’re taking advantage of businesses by charging everyone everywhere these chargeback fees.
There is nothing that the bank does to deserve these fees but they’re just charging them anyway. The number of chargebacks with additional fees of $20 or so on PayPal is and has been skyrocketing since last year. This is why I left them for Google checkout. Since using Google checkout I had no chargebacks and no ridiculous chargeback fees.
So apparently this is a problem only with PayPal. My websites have been sown the same quality products for over 10 years and we’ve only had a handful of chargebacks until this past year. Then the number shot up to over 100 and there’s nothing that we’ve done wrong. They were all for the same complaint that the item wasn’t received when in fact it was. All items shipped user online tracking each item was delivered to the buyer.
I don’t see how PayPal or these banks could find for these fraudulent buyers like this and then on top of it charge you a chargeback fee of $20. I asked PayPal this and got no response so I told him to screw themselves and left. I am glad that I left PayPal as my earnings have only gone up and I have no chargebacks.
If you have an online e-commerce site and take payments online I seriously suggest that you leave PayPal immediately for Google checkout. Your profits will only go up at your chargebacks will only go down. You will be better off in both the short and long run.