I have been doing business on Ebay for quite some time and only recently have I run into this charge back fee thing with PayPal. It is rather annoying and quite costly. It appears that on top of the entire transaction being turned over in favor of the customer (regardless if they are right or wrong) PayPal is now socking seller’s with a $20 charge back fee for every chargeback.
PayPal says that they fight chargebacks, but I have yet to see them win one for me. It seems every time no matter how stupid the complaint may be they or the credit card company finds for the buyer. That’s just not right. I had one customer recently buy a college algebra textbook off of me and then they tried to say that I sent them the wrong book. They actually sent me back a tattered Archie comic book and said that I sent them that.
That was a complete lie. Even PayPal found for me in the customers initial complaint. But in the end it didn’t matter to her company decided to reverse the transaction anyway through the charge back that the fraudulent buyer later filed and then to make matters worse PayPal socked me with a $20 charge back fee.
PayPal me an auto generated email saying that they were sorry that I lost the chargeback case with the credit card company and that on or that they were going to assess me a chargeback fee. It did not list what exactly the chargeback fee was going to be so I had to look it up in my account and I quickly found it under a transaction search – it was $20!
So that means I am out the textbook (I paid $145 or so for it at my college bookstore and the bookstore wouldn’t buy it back because they switched editions). I am out the shipping and handling. I paid around $6 to ship it with tracking. And I am also out the $20 bogus chargeback fee PayPal has assessed me. So, I am now out about $175 or so due to a fraudulent buyer on Ebay.
I don’t think that PayPal should be able to assess this $20 chargback fee. It’s like kicking someone when they are down. PayPal is a huge multi-million dollar business and this is just plain bad business to be assessing chargeback fees like this.