Several months ago I wrote about the how easy it was for one dishonest customers to initiate a chargeback and get money from our PayPal account. It seamed like we as merchant did not have any rights at all. Majority of people who we talked to about the situation was saying that chargebacks are just another cost of doing business and the rest of respondents blamed PayPal. They were saying that it was really the PayPal’s fault and it is very unfair to just withdraw money from merchants accounts. At the time we thought about looking for alternatives to PayPal, not taking credit cards at all and quite a bit of other crazy things.
It has been a while since then, but today I am very pleased to report that PayPal has actually fought for our money and won. I am really impressed with how PayPal managed to win the chargeback from VISA credit card company. It took it awhile, but after several months we actually got our money back.
So if you are selling anything online or accepting payments via PayPal or any other service follow these simple recommendations to maximize your chances for keeping your money in your pockets:
- Ship merchandise with carrier that provide package tracking and proof of delivery.
- In case of returns, require from clients that they use your preferred (see above) carrier.
- Keep all record. E-mails, snail mail, tracking numbers, proof of delivery, proof that you did not receive anything (like in our case), anything that is even remotely related to your business. You will never know when you will need that information, but it could literally safe your business in some cases.
- In case of dispute with client and if it is not going to be resolved peacefully notify PayPal promptly about the dispute. I think their requirement is like within 20 days.
- If chargeback is actually initiated you will have a chance to present your case. Keep in mind that in most situations it is your only chance. So present all the records that you have collected with your full description what they are and how they are related. Include history of the dispute. Most likely you will not hear from them until the case is either won or lost.
So good luck to you all.