Chargebacks: let`s talk about them

[italiandragon]

Today by trying to find how much my bank charges about some services I accidentally found this about chargebacks:

(13.2) Time limits for reversing a transaction
You should notify ANZ immediately of a disputed transaction.
Visa card scheme operating rules impose time limits after the
expiry of which ANZ is not able to reverse a transaction. The
minimum time limit generally applicable is 75 days after the
disputed transaction but some time limits are longer. In some
cases where the Electronic Funds Transfer Code of Conduct
applies, the time limits may not apply. If you do not notify ANZ
in time, ANZ may be unable to investigate your claim in which
case you will be liable for the transaction.
It is your responsibility to review carefully your statements of
account. ANZ is not responsible for any loss to you if you do not
ask ANZ to reverse a transaction within an applicable time limit.

I`d love to hear what your bank/credit card policies are since most of us thought that 60 days was the maximun......we better know these details!

Thanks

 

[HeyGeek]

i was just reading up on mass pay- seems more involved than that- i imagine if it was that easy we would have all been doing it and not paying any paypal fees, no? buyer needs a bussiness acct, needs to have some sort of tab file set up, ect..

It's not that complicated at all: yes the sender does need to have a business account, but the maojority of people that buy and sell domain names and websites do, and the tab file literally takes 10 seconds to set up. I pay a bunch of people that do work for me with it several times a month.

The reason more people don't use it is because it isn't something PayPal actively promotes...it really is quite easy. And the people that know about it use it all the time. I had someone buy $2700 worth of advertising from me the other month, and I had him use Mass Pay. He had never heard of it before.

 

[italiandragon]

Unless it is a person you have known for quite a while, Always use an escrow service for $1000+ transactions

If it is less than $1000 , Tell them they must use a PayPal balance to pay you.



The problem is non tangible goods, PayPal considers electronic transfers of goods, non tangible. It is a he said-he said case, with out any real proof, In these cases the buyer most always wins with PayPal.

Hi X , as far as I know, balance or not balance the problem is still there.

So, thanks to everyone, so far we established that there are 2 ways a payment can be reversed:

1) chargeback (which was the topic of this thread and I`d love to hear the terms from someone else) and it seems it can be avoided by asking to pay only with PayPal balance if we really really really need to use PayPal

2) PayPal dispute and it seems that if buyer pay by Mass Pay and choose service , PayPal will protect seller in this scenario. I won`t rely on that, so the other way as someone suggested is to ask to the buyer to open a dispute and then close it before to proceed as it seems a dispute can`t be opened twice for the same transaction.


(still I`d love to hear how long your credit card allows chargebacks......thanks)

 

[HeyGeek]

if buyer pay by Mass Pay and choose service , PayPal will protect seller in this scenario. I won`t rely on that

The reason that this is usually safe is because as long as the item purchased was a service PayPal's system automatically closes the dispute when it gets escalated to PayPal management. A real person never even looks at it. PayPal favors the SELLER with intangabile items, credit card companies favor the BUYER.

Also, having buyers constantly open disputes (even if the close them right away) is a good way to get your PP account limited.

 

[italiandragon]

The reason that this is usually safe is because as long as the item purchased was a service PayPal's system automatically closes the dispute when it gets escalated to PayPal management. A real person never even looks at it. PayPal favors the SELLER with intangabile items, credit card companies favor the BUYER.

Also, having buyers constantly open disputes (even if the close them right away) is a good way to get your PP account limited.

uhmmm true but they limit it anyway....what a service :yell:

 

[labrocca]

Chargebacks can occur up to 6 months in most cases. Read your own credit card agreements to see when you can start one. Amex I think it's even longer..possibly up to a year.

Use escrow for characters with no reputation. I also check reputations of deals to see if they were small petty deals and then suddenly they want to paypal me $800...I get suspicious. I would much rather pass on a deal than to lose my site and get aggravated at being scammed. Err on the side of caution.

i can laugh about it now because pay back is a bitch, and unknown to me, i had accidently left a passage into the code, which i duely exploited daily.

Backdoors into scripts is also imho a good way to make sure a person stays honest. I have scripts ready to run if some idiot thinks they can take my site and not pay me. They will quickly see what r00ted means.

 

[Peter]

Backdoors into scripts is also imho a good way to make sure a person stays honest. I have scripts ready to run if some idiot thinks they can take my site and not pay me. They will quickly see what r00ted means.

Be extremely careful with doing that. Although I can understand the sentiment if you do gain root or cause damage to the server you are criminally liable.