5 ms·
> PayPal, and most other "payment facilitators" do a much better job handling disputes. In PayPal's case they provide a much fairer arbitration process (funds a
by snark42 8y ago
> PayPal, and most other "payment facilitators" do a much better job handling disputes. In PayPal's case they provide a much fairer arbitration process (funds are held by PayPal, and a website with message thread is created allowing communication between the merchant, customer, and arbitrator).
How does this work if the customer paid Paypal with a credit card and initiated a chargeback? I get the credit card/user could be blacklisted but PayPal would still be out the money even if the seller won the arbitration case.
- dannyw 8y agoCard companies generally warn customers that they’ll be banned by PayPal if they continue with the chargeback, and encourage them to file a dispute instead.
- StudentStuff 8y agoNever encountered this when filing a chargeback on an item or service purchased through PayPal, nor has it negatively affected my PayPal account.
- chrischen 8y agoIt probably depends on how much you do it. I'd imagine they know how much their average revenue per customer is and they'd cut people off after the chargebacks exceed a certain threshold.
- StudentStuff 8y agoDepends on the time of year, but especially when dealing with sketchy merchants (low end providers/vendors), if PayPal gives me any gruff, its straight to American Express for me. Perhaps PayPal wants to avoid violating the terms of their merchant agreement, which banning users that weren't mostly fraudulent would probably not jive with? American Express is very strict with processors
- chrischen 8y agoAmex probably has more to lose than PayPal does if PayPal went to war with them.
- StudentStuff 8y agoAmerican Express isn't afraid to drop a large merchant if they're mis-treating customers or not profitable, look at what happened with Costco. Visa/Mastercard/Discover won't go to war, but Amex will with a smile on their face.
- askvictor 8y agoI had this happen once; I tried first with Paypal, who wouldn't pay my money back (I was outside their time-frame), then went to my bank who handled the charge-back. Didn't affect my account.
- chrischen 8y agoPayPal seller protection appears to cover liability for chargebacks (given you win the dispute with PayPal). I've never personally encountered a case where they went straight to a card chargeback vs PayPal resolution.
- homero 8y agoThat's against paypal tos and paypal usually bans that customer