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Hosting Discussion > Operating a Web Hosting Business > Billing and Accounting > How do you deal with PayPal chargebacks?
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  Post #31 (permalink)   03-29-2016, 05:07 PM
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Nothing you can do, minus take the pain and try and work with your supplier if you buy servers from them, they might offer a refund for fraud. Report the person on fraudrecord.com. If it's disputes you can phone PayPal and get it sorted.
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  Post #32 (permalink)   09-10-2016, 10:49 AM
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If we receive a chargeback, the client's entire account is suspended and all products and services that they have with us.

We report the client on Fraud Record

We then charge the customer a $75 administrative fee (as this is outlined in our policies) as the client did not give us the opportunity to work with them or resolve the issue.

After all, we do have a 30 day refund policy on most of our products and services.

If the client refuses to pay the $75 fee and continues to pursue the chargeback and doesn't want to cancel and resolve the issue with us, then we will send their account to collections to collect the balance due on their account, the additional $75 and the amount that it costs for our 'collection attempts / services'.

Doing a chargeback is a loss for both us and our customer, no one wins with a chargeback.
 
 
 


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  Post #33 (permalink)   09-10-2016, 11:12 AM
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Quote:
Originally Posted by WWTSLarry View Post

If the client refuses to pay the $75 fee and continues to pursue the chargeback
Once a chargeback is started it cannot be stopped, so it will be carried out to the full.
with paypal as soon as it is started paypal will freeze the payment or take the money from your account and place it in a holding account until the chargeback is completed, then the money will be given back to you or as in most cases the money returned to the paypal account holder.

good luck in trying to get any admin fees off anyone as what if a client has signed up using a hacked paypal account or bank card, the true card holder or paypal account holder would chargeback the payment as unauthorised, so who would you charge the $75 too
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  Post #34 (permalink)   10-05-2016, 07:42 AM
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For charge back, i guess you have no choice to just refund back. Paypal do not have policy help virtual product
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  Post #35 (permalink)   10-05-2016, 08:28 AM
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Originally Posted by easyhostmedia View Post
Once a chargeback is started it cannot be stopped, so it will be carried out to the full.
Why can't it?

If the client pays with a credit card, one call to customer service will fix it.
Never had to deal with PayPal chargebacks, but I still believe you can inform of PayPal of a mistake and they will drop the case.
 
 
 


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  Post #36 (permalink)   10-05-2016, 04:02 PM
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Call your Paypal Business support representatives. Usually they can listen and apply appropriate flags and notes that can ensure that you have a reasonable chance to win, if your claim is valid or at-least not be charged fees.
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  Post #37 (permalink)   11-16-2016, 10:11 AM
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I dont think refunding without question to save time is the best way to operate a business. if the user has gone outside you TOS then fight it all the way. document everything and ensure you make the user agree to the TOS on signup. then give paypal all the information you have, ensure the customer has used the service and you can prove they have broken the TOS. its worked for us quite a few times.
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  Post #38 (permalink)   11-25-2016, 10:26 AM
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Quote:
Originally Posted by Artashes View Post
Why can't it?

If the client pays with a credit card, one call to customer service will fix it.
Never had to deal with PayPal chargebacks, but I still believe you can inform of PayPal of a mistake and they will drop the case.
a chargeback is different to a paypal case which can be stopped.

a chargeback is started by the true card holders bank, it has nothing to do with paypal. paypal will get charged by the bank and they pass this charge onto you.
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  Post #39 (permalink)   11-25-2016, 01:53 PM
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I've only had one issue with PayPal and that was with a woman who claimed she never requested our services, but PayPal was able to trace the IP back to her. She later apologized to us because she was in debt and couldn't afford what she ordered.
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  Post #40 (permalink)   12-03-2016, 08:17 PM
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We would try to contact customer first, if we are unable to reach out to the client, we will suspend the account and service.

There's nothing you can do when chargeback occurred, it's the nature of the industry, what we can do is to review the order before we deliver the service to avoid scamming.
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  Post #41 (permalink)   12-26-2016, 04:35 AM
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If there is a Chargeback you can contest in the dispute resolution. But if the chargeback was done due to use of unauthorized Transaction need to honuor the refund.
 
 
 


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  Post #42 (permalink)   01-09-2017, 10:05 PM
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I have a very simple policy regarding chargebacks. Don't give in.

I tend to take it to the highest level I can, and usually can prove my case pretty solidly. I think in just over 14 years (yikes), I've only lost a handful of chargebacks... Then again, I maintain a relationship with clients where I don't have them.

Whether I win, or lose, the chargeback user is immediately suspended and reported to fraudrecord. That kind of abuse won't be tolerated, at all.
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  Post #43 (permalink)   01-28-2017, 07:37 PM
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There's no specific way to deal with a charge back from a customer. PayPal allows a customer to complete a chargeback within 45-days! This is why our Refund Policy in our Terms of Service offers a 45-day money back guarantee. If a end-user completes a Unauthorized Transaction Form against PayPal and our business, we work with a Legal Advisor in order to obtain whether the claim is really unauthorized. We normally tend to refund all customers for all services besides Dedicated Servers as our prices are 50% below market value.

Thank you.
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  Post #44 (permalink)   02-03-2017, 04:48 AM
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There's no specific way to deal with a charge back from a customer. PayPal allows a customer to complete a chargeback within 45-days! This is why our Refund Policy in our Terms of Service offers a 45-day money back guarantee. If a end-user completes a Unauthorized Transaction Form against PayPal and our business, we work with a Legal Advisor in order to obtain whether the claim is really unauthorized. We normally tend to refund all customers for all services besides Dedicated Servers as our prices are 50% below market value.

Thank you.
Well that covers you against PayPal disputes but not chargebacks. Chargebacks have a much longer window for a chargeback to take place and if that is the case, PayPal will hold the funds on your account until the chargeback has been resolved. I believe the chargeback for card issuers is around 120 days but can go up/down based on certain factors.

Really there isn't a need for a legal advisor in a chargeback case and unless you have some really large contracts in place, wouldn't the legal advisor cost you more than the chargeback itself?
 
 
 
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  Post #45 (permalink)   02-03-2017, 05:03 AM
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Quote:
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PayPal allows a customer to complete a chargeback within 45-days!
No they dont. Paypal allows you to open a Paypal Claim within 45 days, this is totally different to a chargeback.

A chargeback is initiated by a card provider and can be started within 120 days.

You will find that if you have used Paypal some banks/card providers wont allow chargebacks as paypal is a 3rd party payment service, so any disputes needs to be started through paypal.

you will need strong evidence to fight a Paypal claim and win, but either way if a client submits a claim then their account get suspended pending termination.
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