Bullshit Paypal Fee - Watch Out

AdHustler

AdHustler

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Aug 24, 2007
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I recently got a few paypal chargebacks on an ecommerce site that I own. I disputed them and gave the tracking info but of course still lost the chargeback. I noticed now that not only did paypal take the money for the transaction but $20 on top of it for each chargeback.

Is this new? Because its complete bullshit. Ive been with them for like 8 years and never got chargeback fees.
 


ive NEVER been charged a chargeback fee on top of the chargeback - ive also never been charged a fee to REFUND a payment until recently.
 
AdHustler said:
ive NEVER been charged a chargeback fee on top of the chargeback - ive also never been charged a fee to REFUND a payment until recently.
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What's really fun is having your charge-back fee being more than what the purchased item was, then having the CS lady on the phone say she can't help you, then her manager (because you want to go there to get some sense of service) say they are going to have to freeze your account "temporarily" to investigate the issue to "protect you" from any further issues.
 
If the end customer charges back through their credit card company, a normal merchant account will ding you a chargeback fee of usually $20-30 in addition to pulling money for the refund. If PayPal is charging you that fee, it could have been initiated by charging back at the credit card company, rather than at PayPal, but that's just my guess.

Standard industry practice.
 
I understand that other companies do it but Paypal never did - the lack of ridiculous fees like statement fees etc etc is why ive used Paypal this long
 
It only occurs when the person has used their credit card to purchase the product and then has issued a charge back VIA their credit card issuer rather than through paypal.

When the credit card companies do this, they charge a chargeback fee. Paypal is just passing this on.
 
I hear that AmEx lets people do chargebacks much easier than other cards. Is it possible to not allow buyers to use AmEx when paying through Paypal? Are there any other ways to avoid chargebacks?
 
Paypal's CB fees used to be $10, but raised them to $20 which is what authorize.net charges I believe.

Just a tip that some may know already, make SURE your customers know exactly what to look for when they check out their credit card statement. Make sure once they place the order on your site, on your success page state the exact name/desc they'll see as a result from ordering from you. If it's something generic/unrelated to your site, some people will chargeback not knowing wtf it came from.
 
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